Customer Loyalty

5157 Words Apr 1st, 2009 21 Pages
ABSTRACT

Customer and customer loyalty have an increasing importance in today’s competitive world. The companies follow customer share intelligence instead of market share intelligence. The most used method for this is information technology based customer relationship management.

In this paper it is examined the factors that affect this loyalty, the place of information technology based customer relationship management variables such as club cards, calling centers and web sites under KIPA and MIGROS examples.

After a brief discussion of loyalty behavior and the variables which affect the customer loyalty in positive and negative ways were given in Chapter I, Chapter II explains the customer loyalty in retail
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1.1.3. Secondary behavior: Customer suggestions, spreading their ideas etc. are very important forms of customer behavior. Spreading information is very important for gaining new customers. These kinds of loyalty indicators are generally forgotten. These are weaker measures of behavior and building the relationship with buying behavior is difficult. Also it is hard to understand what kind of experience builds this secondary behavior.

Customer loyalty is an important element for the companies for being successful in the competitive world. Therefore, companies always try to increase the number of loyal customers and the degree of their customers’ loyalty. For obtaining this, the elements, which cause a decrease in customer loyalty, must be learned carefully. The reasons for the decrease in customer loyalty are: (Coroglu, 2002)

• Globalisation
• The increase of competition and alternatives with low prices
• The ease of reaching knowledge and knowledge sharing
• Message jam
• The improvement of Internet
• Technological improvements
• The products that are nearly the same

1. 2. The Variables Which Affect The Customer Loyalty

The variables that form customer loyalty can change from sector to sector and from company to company. Also each customer or customer group may have different reasons for being loyal to a company, brand or service. In this section, basic variables, such as customer satisfaction, quality

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