“Put the Customer Before the Stockholder,” Says Mark Levit
Released 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
prices. Since then, the focus of operations has been financial growth. Product
quality and customer service have fallen to the quest for financial results.
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
of a capitalist economy.
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
New York, NY 10006
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