Statement of the Problem We don’t understand why Omnico is less likely to maintain long-term relationships with its clients. In comparison to our competitors in the same industry, Omnico is well below the average in client retention. There also seems to be a discrepancy among the employees at Omnico as to which personal selling process is the most effective to increase customer loyalty. The history of success at this company has stemmed from the loyalty of long-term customers who were receptive to the actions of Omnico’s top-producing salespeople.
Summary of the Facts Omnico is a company that has been around for decades. Over the years, the company has cultivated some fiercely loyal customers. These customers built close relationships with Omnico’s salespeople. Buddy Towers of Omnico has been a top-producing salesperson for 35 years. Mr. Tower’s key to success has been the trust and loyalty he built with customers, built mostly while enjoying a round of golf. His personal selling process has worked for him and Omnico over the years. However, there has been opposition to Mr. Tower’s tactics from newer employees of the company. These employees feel that Mr. Tower’s previously successful sales strategies are now outdated. Their belief is that customers remain loyal to Omnico when the product and service improve their bottom line.
Analysis
There are two options that Omnico needs to consider in their situation. One alternative is to focus on improving their bottom line. Omnico would focus on attracting new customers and maintain old ones by offering the best prices for products in their industry. Omnico would improve quality and product performance in the areas of greatest reward. The strength of having a superior product could be beneficial in this competitive market. Weaknesses could include the increased cost to the company to implement