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EPR Archived News |
“Put the Customer Before the Stockholder,” Says Mark LevitReleased on = December 22, 2004, 1:55 pm Press Release Author = Mark Levit/Partners & Levit Adveritisng Industry = Management Press Release Summary = Customer satisfaction should be the priority for marketers. But the past two decades have seen a shift in focus from customer to shareholder. Press Release Body = Customer satisfaction should be the priority for marketers. But the past two decades have seen a shift in focus from customer to shareholder. The reason is a rash of corporate mergers and acquisitions. “Mergers and acquisitions take place to maximize shareholder value. The owners of corporations are their shareholders, obliging companies to conduct operations with the goal of pleasing them,” according to Partners & Levit Advertising’s managing partner, Mark Levit. Undoubtedly, stockholders must be pleased, but the short-term focus on stock price often results in a loss of customer service and reduced product quality. Stockholders benefit more in the long term when the customer is satisfied first—quality customer care and products are revenue drivers. While mergers enable corporations to enjoy economies of scale, customers rarely see the benefits. “Contrary to the opinions of financial management, this is not a customer’s market. Customer satisfaction is no longer the focus of operations—cutting costs and higher stock prices take precedence,” said Levit. The beginning of this shift began as early as the 1980’s. Companies competed freely,
enticing customers with quality products and service. As they merged, the resulting
entities were able to offer lower prices, gaining market share and raising stock How can it be fixed? “The answer,” said Levit, “is obvious—companies need to pay more attention to what keeps them in business. How a corporation balances responsibilities to shareholders while restoring the quality of service and its products is an obscure path, one which no one wants to follow simply because it does not immediately elevate stock value. “Investing revenue in customers is profitable, if executed correctly. The ROI is one that keeps on paying—happy customers are loyal customers,” Levit concluded. Shareholders need to realize the importance satisfying customers since the long-term
stock price is affected by customer satisfaction. If customers become disgruntled,
they no longer do business with the entity, reducing profitability. Ultimately, the
origin of company profitability relies on the happiness of its customers—the driver Partners & Levit Inc. is an aggressive New York advertising agency that leverages branding, advertising, sales promotion, direct response, seminar/event selling, the Internet, and other channels to guide prospects along a continuum until they become loyal customers. The agency’s heritage dates from 1981. For more information about Partners & Levit, visit www.partnerslevit.com or call 212-696-1200.
Web Site = http://www.partnerslevit.com Contact Details = 47 West Street
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2012
