Royal Shakespear Company

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ACCG355 INFORMATION SYSTEMS FOR MANAGEMENT CASE STUDY: ROYAL SHAKESPEAR COMPANY LEVERAGES PATRON DATA TO IMPROVE PERFORMANCE Question 1: Why is customer loyalty critical to nonprofit organizations? “The difference between a nonprofit organization (NPO) and a normal organization is that NPOs uses surplus revenue to achieve its goals rather then distribute them as profits or dividends. NPOs can generate surplus revenues but must retain them for company use only. NPOs often employ paid staff but most employ unpaid volunteers and even executives who work with or without compensation.” We can see the importance of revenue for NPOs, they require money to continue operations and most staff is either volunteers or paid at the nominal rate. Customer loyalty is relied upon for long term success and to continue to retain customers they used audience analytics to ensure they are targeting the right market, to acquire new customers, retain existing customers and cross sell. Without customer loyalty, their revenues would drastically decrease and they would evenly run out of money. Question 2: Explain the importance of data quality to the success of the RSC’s marketing campaigns As RSC is relying on audience analytics to retain existing customers, acquire new customers and cross sell to new markets. This is basically the only way that they are receiving their revenue from. What would have happened if the data quality was very bad, which in turn affected their marketing campaigns and they lose most if not all of their customers, they would have been unable to repay debts and eventually gone bankrupt. One of the main factors of the success of RSC’s marketing campaigns is the quality of the data that they used, it enabled them to target marketing more precisely, which in turn enable the RSC to substantially increase membership and fund-raising revenues.
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