Getting the most out of all your customers

Companies spend billions of dollars on direct marketing, targeting individual customers with ever more accuracy. Yet despite the power of the myriad data-collecting and analytical tools at their disposal, they're still having trouble optimizing their direct-marketing investments. Many marketers try to minimize costs by pursuing only those customers who are cheap to find and cheap to keep. Others try to get the most customers they possibly can and keep all of them for as long as they can. But a customer need not be loyal to be highly profitable, and many loyal customers turn out to be highly unprofitable. Companies can get more out of direct marketing if they see it as a single system for generating profits than if they try to maximize performance measures at each stage of the process. This article describes a tool for doing just that. Called ARPRO (Allocating Resources for Profits), the tool is essentially a complex regression analysis that can estimate the impact of a company's direct-marketing investments on the profitability of its customer pool. With data that companies already gather, the tool can show managers how much to spend on acquisition versus retention and even what percentage of their funds they should allocate to the different direct-marketing channels. Using the model, companies can easily see that even small deviations from the optimal levels of customer profitability are expensive. Applying it to one catalog retailer showed, for instance, that a 10% reduction in marketing costs would lead to a 1.8 million dollar drop in long-term customer profits. Conversely, spending 69% less on marketing would actually increase average customer profitability at one B2B service provider by 42%. What's more, the tool can show that finding the optimal balance between investments in acquisition and retention can be more important than finding the optimum amount to invest overall.     

Risky business: The role of risk in voluntary turnover decisions

One aspect of turnover decision-making that turnover models have not adequately considered is the risk associated with quitting one's job and the potential that research on risky decision-making has for advancing understanding of turnover. We define risk and present turnover as a risky decision; review previous applications of risk in turnover theory; review literature on decision-making under risk as it applies to turnover; integrate these literatures and provide propositions. Our analysis suggests that individual differences, frames of reference, the decision context, and social influences affect perceptions of the risk associated with quitting as well as the willingness to take risks in this particular situation. The implications of turnover risk perceptions and turnover risk propensity for turnover theory and research are discussed.     

Attitudes of food entrepreneurs towards two grant schemes under the first England Rural Development Programme, 2000–2006

Grant schemes introduced under the first England Rural Development Programme (ERDP) (2000–2006) have been subjected to limited academic research and this paper aims to fill this gap by examining the attitudes of food entrepreneurs in two contiguous English regions to two key elements of the ERDP: the Processing and Marketing Grant (PMG) and the Rural Enterprise Scheme (RES). It does this through a qualitative analysis of data gathered from interviews with 20 ‘adopters’ and 20 ‘non-adopters’ of the two schemes in the South West and West Midlands regions of England. The analysis reveals that, despite the rural development rhetoric, neither the PMG nor the RES was particularly effective at funding enterprises beyond the farm gate; both schemes also appeared to attract what can be described as ‘serial adopters’ and to discriminate against those without experience of applying for government grants. Nevertheless, indirectly they did provide opportunities to safeguard and expand local and regional food production, processing and retailing in the two regions.     

From public ideology to socio-material reproduction of agile principles: The case of pivotal labs

This paper focuses on how regular invocation of a public ideology helps sustain local work practices. Existing research acknowledges that there is a recursive relationship between the local practices and the public ideas, with local practices leading to the adaption of public ideas over time. There is little study of how public ideology sustains local practices over the longer term – seeing translation of the ideology as an ongoing process. Through a case study and web-based analysis of Pivotal Labs, an agile software development company, we contribute to socio-material translation studies demonstrating the manifestation of the public ideology in socio-material practices. We also introduce the concept of a collective cognitive bridge that supports the continued relevance of the public idea as a prop for these socio-material practices.     

Designing and supporting transnational teams: The human resource agenda

As the challenges of managing across borders become increasingly complex, companies are exploring innovative ways to organize and manage people. Many are turning to the use of transnational teams composed of individuals from multiple nationalities working on tasks that span multiple countries. This article reports the findings from a study of human resource practices used in 34 transnational teams from 23 multinational firms. The article provides specific examples of how staffing, training, and rewards systems are adapted to support the strategic orientations of these teams.¹ © 1998 John Wiley & Sons, Inc.     

MANAGEMENT BY PANACEA: ACCOUNTING FOR TRANSIENCE

The cyclical nature of much consultant-led activity designed to improve managerial effectiveness is explored through three consultant-driven approaches to organizational improvement - management by objectives, organization development and total quality management. Such packaged programmes seem to proceed through phases of high enthusiasm and much activity followed by a period of disillusionment, to be replaced by the next stage panacea. an attempt is made to offer some explanation of the transitory nature of much managerial activity which is believed to lie fundamentally in cultural and psychodynamic phenomena. Such an analysis may provide some clues to the search for remedial steps which might be taken to find more enduring ways to bring about increased managerial effectiveness in organizations, although by the very nature of our diagnosis we remain pessimistic.     

Rethinking the Business School*

It is ironic that at a moment in history when the business school seems to be enjoying unparalleled success, the role of the business school is being increasingly questioned by some of its leading professors. We examine the debate about the business school and its evolution. While sympathetic to the criticisms levied against the business school we nevertheless suggest a positive future if the business school can build upon its potentially unique position as knowledge space.     

Evaluation of a client care delivery model, Part 2: Variability in client outcomes in community home nursing

Using similar variables, Part II explores variation in client outcomes such as OMAHA knowledge, behavior, and SF-36 scores. Medical and nursing diagnoses explained large variations in client outcomes. Clients cared for by degree-prepared nurses improved knowledge and behavior scores. Unanticipated case complexity was negatively associated with client outcome even with nursing intervention. The study revealed that "for every unit increase in assignment of baccalaureate-prepared nurses, clients will on average demonstrate an 80% greater likelihood of improvement in knowledge scores and a 120% greater likelihood of improvement in behavior scores in relation to their health condition at discharge." This two-part study has offered insight into the controllable variables influencing the cost and quality of home care services.     

Framing consumer education conceptual innovations as consumer activism

This position paper developed the argument that creating innovative and forward‐thinking conceptual approaches to consumer education is a proactive process, the trademark of consumer activism. Assuming that (re)conceptualizing consumer education is a form of consumer activism, this article identified the conceptual contributions and intellectual innovations of 24 consumer education initiatives in North America (1962–2012). Using an historical analysis method, this study profiled consumer educators who tried to stay ahead of the curve by creating leading‐edge approaches to socializing people into their consumer role. In effect, they were expressing their personal and intellectual convictions about the potential and possibilities of consumer education as a means to promote change to protect and empower people in their consumer‐citizen role.