Question 1: What are the main challenges in implementing this segmentation in DHL's customer database? Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Answer: DHL provides international courier, parcel and express mail services. It is a division of a German logistics company. It is the world's largest logistics company operating worldwide, particularly in sea and air mail. DHL segments its customers into different groups. According to different customer needs, customers are segmented into strategic customers, long-term relationship customers and direct customers. The strategic customer is someone who has large logistics needs and also requires a complex supply chain. Generally the strategic customer group consists of the top 200-250 customers in the world. Customers with long-term relationships use DHL services regularly and frequently. Their logistics needs are simpler than those of the strategic customer. In terms of direct customer, they are not loyal to DHL, which means they can choose another company if they want at any time. DHL always tries to provide the best technology and best service to strategic customers to build a strong cooperative relationship with them. However, DHL's main task is to focus on long-term relationships with customers, in order to achieve profit maximization, and DHL can also do something for direct customers to turn them into loyal customers. To be able to effectively manage such a diverse customer base, DHL has implemented a sophisticated customer segmentation and loyalty management system. The goal of this system is to evaluate the profitability of its customers, reduce customer churn and increase DHL's share of shipments. DHL has further classified customer segmentation based on the loyalty management system. They classified into six segments from the previous three segments. The segments are: lost, with decreased return, retained, with increased return, new and regained. Data collection is a difficult part. The collected data is communicated to sales, marketing, customer service and senior management. In the event of an increase or decrease in the percentage, DHL may take corrective action. The growing demand for frequent small shipments from consumers has become one of the biggest challenges for logistics express companies. Successful delivery of shipments to consumers spread across large geographic areas will require redesigning the existing distribution network, including terminals, hubs, and the network routes that connect them. DHL needs to create large-scale hubs to process a high volume of shipment flows. Cost efficiency and a high level of service in the distribution system are key for DHL to remain competitive in the industry. There are many challenges to launching a successful loyalty program. If a good loyalty program, once successfully launched on the market, can help increase customer loyalty and satisfaction, decrease customer churn, strengthen brand value, contribute to up-sell and cross-selling objectives, sell and further advantages. The challenges mainly concern the operational point of view after the launch of the program on the market. It is wise to consider and anticipate operational challenges, think about the right business strategy, and plan to reduce operational challenges and risks before launching the program to market. • Operational Management: Daily operational management and management of questions, problems and issues?
tags