Discussion: Trends in Management Accounting

Student 1

Trends in Management Accounting

Leundrea Giles posted Sep 21, 2020 1:26 PM

The retaining customers should be the new norm to assist profitability. Gary Cokins, explained the importance of the shift from product centric to customer centric. There are different types of customers. You want to be able to meet each customer so they will want to continue to purchase your product. Simon Carter said, "The reality is that bottom-line profitability generally comes from customer retention" (2018). Knowing your customers will take you a long way in keeping them. So, the shift was to personalize the enter action, and make the customer feel better about the experience, chances are they will return. Now on the analytic side you can pull data on the types of customers. Mention in the video (7 trends Management Accounting) they are customers that are high maintenance as well as low. So, if you have the data to understand their spending habit, that would allow you to personalize your approach to them. You not only want them to buy said product today, but again and again.

As a consumer, if I like the way I was treated there is great chance I will return and tell others about a particular place. On the other hand, I will not return and pass my experience off to others. I see how important it is to retain customers to continue build your profits.  

7 Trends in Management Accounting - Introduction. Authored by: IMA. Located at:  https://www.youtube.com/watch?v=gRyW2_Ay2Cw . License: All Rights Reserved. License Terms: Standard YouTube License

(2018, December 19), How Marketing Is Shifting Sales' Focus From Process To Customer. Retrieved from  https://www.marketingweek.com/marketing-shifting-sales-focus-process-customer/ .

Student 2

Trend 1

Jonathan Cleek posted Sep 23, 2020 5:26 PM

Good evening Class.

The first trend that Gary Cokins talked about was shifting from being product-centric to being customer-centric as customers are beginning to become more interested in what a company can do for them. Many have become more interested in services than products, as there are so many of the same types of products available from different companies. This brings up high and low maintenance customers. Some customers are happy to buy the product and then you don’t see them again. Other customers require a lot of attention and customer service (Cokins, 2014).  Companies need to be able to identify which customers they need to spend the effort to attract and maintain and which ones are ok to let go (Cokins, 2015).

 

One example of these types of customers is those who shop at Costco. My wife worked at Costco when she was younger and learned the ins and the outs of policies that many people don’t know about. I would say that this has made us guilty of being high maintenance customers. One of these policies is that they will allow you to return almost anything for just about any reason with very little restriction for time. When we got onto the same phone plan we switched providers at the kiosk in their store and also bought phone cases that came with screen protectors. A few months later we got new phones from a cell phone store so my wife went back to Costco with the cases and returned them and got the new cases for our new phones. Every time we crack a screen protector she returns the case and screen protector and gets a new one. We have paid for 2 cases and probably been through 4-6 so far. This works for Costco for most customers because they sell so much food in bulk, which is something that people will rarely return that they still make a good profit on the high maintenance customers like me.

 

References

 

Cokins, G. (2014). 7 Trends in Management Accounting - Trend 1 [Video file]. Retrieved from https://www.youtube.com/watch?v=lCj4-gvH1WQ&feature=youtu.be

 

Cokins, G. (2015). The Top 7 Trends in Management Accounting. Retrieved from https://www.cchcpelink.com/top7trends