Relationship with customers
Arrow operates with two kinds of customers, transactional and relational customers. The former are customers which placed requests for quotes for one or a few product with a large number of distributors, while the latter are steady partners for the company.
Transactional customer are price sensitive, thus sales people provide them with current pricing information and negotiate with them in order to offer them the best price. The majority of the sales are book and ship type. This customer segment is a major source of relational customers in the long run. Al least a half of them turn to be relational customers who give more attention to value added services rather than prices. This is the first step of building a strong relationship. They provide customer with the best - in class - support. Once customers get the chance to interact with Arrow, they are able to see the true benefit of doing business with them. Although other distributors offer to costumer value added services, Arrow provides to them everything they needed at the right time and in the right quantities.
Extremely important for Arrow is to find the right customers with which to develop long ? term relationship. Helping them in their times of need is the best way to strengthen a relationship. They are looking for an unbreakable relationship as they need the customers to invest along with them in processes that enabled them to provide value added services.
How do they add value to their customers?
1.) Transaction Cost Reduction
? Total cost of Ownership Analysis ? financial model based on ABC methodologies which helped companies identify the total cost associated with particular activities or processes.
? Automated replenishment ? th ...