Case Study Hypothesis: Wow Gifts Ensure Retention and Customer Loyalty

There exist numerous marketing hypotheses and frameworks that aim to better understand why customer relationships, retention and satisfaction are so important. For example, marketers try to segregate the different types of customer loyalty, framing them under factors of ‘repeat patronage’ and ‘relative attitude’. Also, customer loyalty levels are ranked along a “loyalty ladder” that identifies the most profitable customers to whom the firm should target marketing strategies towards. Finally, customer satisfaction, a driver of loyalty, is summarised into a conceptual framework known as “customer response zones”. The firm has two major goals in mind when implementing this strategy. Freed (2014) states Qantas’s intentions to “…boost engagement with customers and revenue from its loyalty partners”. It aims to build a culture of engagement associated with positive and personalised experiences in dealing with the company.

PROVIDE custom services such as in-store workshops and personalized promotions so that customers are retained to generate repeat purchases and make referrals.

Over the decades there were tremendous amount of challenges for every business. Customers have more knowledge, they have more options, and they have higher expectations. Customers are more informed with the humungous development in technology. Having more options in front of them, expectations has surpassed in retail industry. Loyalty is a customer having faith that your organization’s product or services offered is the best for them. It is the process of tapping the buying pattern of customers in a store based on their preferences. Customer loyalty is significant because it is economical to retain the old customers rather than acquiring new customers. So, organizations employ loyalty programs which reward customers for their repeat business.

Every company wants to make money and bring in customers, but what about making loyal customers out of them so they continue to come back? How do you even bring in potential new customers and turn them into loyal customers to begin with? The lifetime value of a customer is a predicted value of net profit credited to the total future relationship of a customer. We want to know the financial value of each customer so that we know how much to spend in marketing when looking for new customers and the potential of profits back from the money in advertising spent. The grocery store chain must start looking at customers and how to make them happy and loyal in the long run, as opposed to how to boost sales right now. From the Marketing Management book, a well-known rule states that 80 percent or more of a firm’s profits come from the top 20 percent of its customers. Thus, we want to focus on brining in new customers with successful marketing and turning them into loyal returning customers.

To solve this problem, the executives of the company should find a way to attract more customers

The first step of developing a profitable customer relationship is to understand what factors may affect customers’ final decision making. As we known, the factors include previous experience, quality of objectives, the salesman, sale strategy, service, price etc.

ABSTRACT Customer lifetime value has been a mainstay concept in direct response marketing for many years, and has been increasingly considered in the field of general marketing. However, the vast majority of literature on the topic (a) has been dedicated to extolling its use as a decisionmaking criterion; (b) has presented isolated numerical examples of its calculation/determination; and (c) has considered it as part of the general discussions of profitability and discussed its role in customer acquisition decisions and customer acquisition/retention trade-offs. There has been a dearth of general modeling of the topic. This paper presents a series of

Before we suggest a customer rewards or loyalty program, it is important to understand what is the company’s long term vision, For whom this program is to be implemented i.e. who are the company’s best customers, what are their needs and expectations, the reasons for having such a program and the expected outcome. So the first question is:

Since its founding, sales have grown exponentially from US$1.6 million in 2000 to US$1B in 2008 (Exhibit 1.). This strong growth was dependent on a strong and loyal customer base, which in turn was dependent on employees who were passionate about and took pride in their work by providing exceptional customer service in their quest to ‘WOW’ their customers.

It would have been good if this fundamental vision was in place right at the very beginning of the company’s formation. In the end it is the customers that make the company, so it makes sense to work towards satisfying this customer relationship. To become profitable and achieve market share are secondary objective that can be measured on a annual basis and overall company well being targets can be rewarded with incentives that link into the company’s performance as opposed to individual contribution to the company’s success.

Discuss the CVS Extra Care loyalty program and whether the program is a source of shopper insights that can be leveraged in multiple ways to be successful.

Q 2.2: FOR THE CHOSEN ENTERPRISE, PROVIDE AN ANALYSE METHODS OF BUILDING CUSTOMERS LOYALTY, AND DEVELOPING PARTNERSHIP THAT HAVE MUTUAL BENEFITS OF CUSTOMERS AND ENTERPRISE.

among customers and reap more profits in return. Like (Shoemaker, 2003), Noone, Kimes and Renaghan (2003) agree that revenue management from the customers affects customer relations and loyalty. Scanty evidence is available to demonstrate that hotel companies incorporate considerations about management of revenue in the process of customer relations management. As for Noone, Kimes and Renaghan (2003), prior to adopting and implementing the CRM and revenue management integration, the hotel companies should first identify the areas of customer relation that qualify for investment. It is essential for such hotels to quantify the value of their loyal clients before investment in them is made (Storbacka, 1994). The CRM greatly strategy determines the proper revenue management strategy to be adopted by the hotel. The authors conclude that further research work is required in the area of revenue management’s future development, particularly in establishing the financial implications of the integration program of CRM and

Every for-profit business has one main goal: to maximize profits by selling as much of its products or services to as many customers as possible. It seems logical to think that the more customers that a business has, the more profitable the company will be. However, business managers should also be aware that some customers are more profitable to the company than others. Managers should analyze their customers to determine those that are the most profitable, and most important to keep satisfied, as well as those customers that may not be contributing to the profit of the business. Once these customers are determined, a manager can develop strategies to

4. Analyse critically how Customer Relationship Management (CRM) system can play an important role to increase profits for each of the organization.