Decision Maker At Loyalty New Zealand

7. Consumer loyalty needs to be increased: - The main recommendation is to increase the good relationship with the consumer at all. The reason is that if there is a good relationship between the organisation and the consumer then the benefit will be to the organisation as good relationship sometimes helps to reduce expense on the other factors like huge expense that is done on the advertising of the brand of the organisation. In Asian markets, areas such as relationship building and a ‘benefit-the-country’ attitude are sometimes more important than investing enormous amounts on advertising (LaForet and Chen, 2012).

The sales plan of Stretch ‘R Wings is ineffective due to the lack of proper market research. The lack of research leads to potential issues with the company’s pricing, product, and promotion strategies, all important elements of the marketing mix. In its marketing plan the company states, “We feel pricing is our main competitive edge” (Palo Alto Software, 2013). Although price is critical to the overall marketing mix, value remains the most important aspect to the customer (McDonald & Wilson, 2011). Value drives sales, not price, even though price is an important element in the value equation.

The article “Personalized Pricing” by Olga Kharif explores the emerging and growing concept of personalized pricing and loyalty programs. The author offers the example of a shopping mother that logs on to Safeway’s Just for U site to see her personalized offers. When she logs on, she views process set for her by algorithms, on items she buys frequently. Later, at the supermarket, she starts shopping using an electronic list that keep track of her specials, and finally checks out using her Club Card or phone number and receives the discounts she loaded; while Safeway gets more information to tailor future marketing pitches.

In the article Branding in the Digital Age (Edelman, 2010) author and research David Edelman successfully illustrates how the Internet has re-ordered the balance of power between consumers and the brands they develop loyalty to over the long-term. His premise of the article is based on how successfully the Internet is transforming buying decisions into a more egalitarian- and trust-based relationship between marketer and customer. The concepts he bases his Customer Decision Journey (CDJ) on is predicated on a foundation of mutual benefit and trust between customer and marketer. The four phases of the CDJ, which are Consider, Evaluate, Buy and Enjoy, Advocate, and Bond are more oriented towards a lifetime relationship with customers versus the completion of a transaction.

The authors words of insight are from 2001, which is a minimum of 15 years ago. The Global economy has changed drastically since then. The principles are still sound in this era, but must be adapted to the current economic climate where the consumer wants and demands much more from a company. Consumers temperaments have changed

Management Dilemma The problem presented in the business research case study is the issue of whether or not customer loyalty is being gained from the allocation of money into "wow" gifts. The second issue is will there be an increase in customers if the money is allocated into advertisement to increase the potential in sales therefore increase the potential in profit, achieving quantifiable results. Overall the main issue is, will customer loyalty or increase in customers promote more profit overall?

The five stages of customer loyalty are awareness, familiarity, commitment and separation. Based on the case narrative, about 5% of MMB customers are in the awareness category because MMB logo is recognized in the mountain biking industry. Customers in this stage are aware of MMB existence and services but have not purchased any service from the company. They have limited relations with MMB because the company is not actively marketing the company product and services. Jerry Singleton needs create more awareness MMB products and services through advertising campaigns in order to increase customer awareness. Also, about 10% of MMB customer falls in the

As selected previously the Market penetration is good option for the company to have growth in the coming years. This strategy focuses on the marketing and sales to have deepen effect that before. Moreover, the people are preferring to buy with the swipe cards to get rewards. So, it is good to have more brands in the has exiting market rather completely as new program. Fly Buys already has a market and well known loyalty program. So it would be less investment tool for the company to adopt market penetration

Increasing number of companies put the strategy of customer loyalty into focus. Marketers from different countries come to an agreement that combining customer development with customer retention can bring long-term impact on brand performance (Kotler, 2003). In specific, price premium, brand awareness and market share closely associated with brand profitability count on customer loyalty. For instance, loyal customers are inclined to pay more for a certain brand because of its inimitable value for them; there is no doubt that no alternative can instead. Similarly, as repeated purchase of loyal customers, market share will be optimistic for the

A service Organization must know the concepts of customer loyalty.Understanding customers need in buying a product and the right approach and proper communication in dealing with customer is important to become them loyal.Customer loyalty have different types and degrees of loyalty that must recognize by any service firms.One type of customer loyalty is Monogamous loyalty and the second type is Polygamous loyalty. There is also behavioural and attidunal aspects.According to Keiningham et al.(2005)on his book loyalty myths.The earth we live in is Polygamous loyalty and not monogamous loyalty.Monogamous loyalty is where customers shops in different retailers such as Coles,Woolworths,Safeway and

In the present 21st century, the pressure of market competition has increased significantly. Under this environment, customer loyalty is the focus of both management practice and marketing practice of modern enterprises. It is the key for enterprises to get trust from customers and retain existing customers with the capability to deliver added value for customers.

Do you view your loyal customers as repeat buyers, or do you see them as brand ambassadors? How you respond will say a lot about your brand strategy.

In the initial part of study, it has elaborate meaning of loyalty. Now, this section has presented literature on effectiveness of loyalty on customer retention. Loyalty program often considered as value sharing or enhancement instrument. Sabol, 2002) addressed that value enhancement function is important because of ability to provide superior value to customer relationship and retention. Loyalty program provide value to consumer in two stages. (Bolton, 2000), has explained stages in brief that in the first stage program points are issued to customer and the second stage when customer redeemed those points. Though these points value don’t have any practical value unless customer redeemed them. However, according to the study by (Machanda, 2004) showed that it has important psychological meaning to customer. Points accumulation can gives customer feelings of benefits and these benefits are able to give customer positive value perception. It is because customer can redeemed those values later for rewards. At redemption stage, customer receives both economic and psychological value. Thus it enhances appreciation and recognition of

The term “Brand Loyalty” also called as “Customer Loyalty” has been in the business industry since a very long time as a model to be used in conducting business. But it wasn’t until the mid to late 1900’s that the term was actually given its due importance by making it a vital part of advertising and marketing. The concept of marketing evolved substantially from being focused on sales of a product to having Customer satisfaction to be its focal point. Studies further revealed that there was a positive correlation between customer satisfaction and Brand Loyalty.

Back in 1996 Fly Buys defined loyalty programmes in New Zealand. After eleven years since its inception, it had lost its steam with consumers. More so, Loyalty New Zealand members and participating companies were not seeing the rewards of being with part of this program and did not feel like it was rewarding them. Fly Buys was on the verge of disappearing into obscurity. (Anonymous, TVNZ/NZ marketing magazine marketing awards)