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142 Managing Customers Through Economic Cycles

Corporations

● Corning Glass – 25–30% of revenue
● IBM – 26% of revenue.

Cost of Quality Matrix (%)

In order to understand what impact your product or service
has on the business you are trying to sell you must map the
impact of your product against these five dimensions:

Activity
% of time spent
Essential, first-time activity
Prevention activity
Appraisal activity
Failure activity

In the illustration below, a business is showing how their
customer relationship management solution can shift out
their potential customers’ dimensions of cost and quality.

Essential, first-time work
In this example, the proposed solution would increase
the amount of time the business they are attempting to sell
their solution to could spend on their fundamental activity
of:

1. Targeting new customers
2. Contacting those target customers
3. Acquiring those customers.

The time and resources saved from their solution enables
the business to now initiate new marketing activities. Pre-