Long Term Customer Loyalty And Relationships

Many marketers agree that by reducing customer’s to competitors defection by only 5 per cent, companies can improve profits by anywhere from 25 per cent to 95 per cent. There is no question this will be a great advantage and could benefit any retailer. It is for this very reason why consumer’s relationship marketing and using tools such as loyalty scheme is

The relationship marketing has the opportunity to satisfy the buyer as the seller which is the long-term relationship with the customers. This relationship help company to develop more interesting products to attract more attention and more revenue increasing economic opportunities to grow up to another area. For example, give discount coupon for employees of different companies could bring new clients and at the same time every new client could bring their relatives creating a big relationship

Relationship marketing is the process of attracting, maintaining and enhancing relationships with key individuals over time. Businesses use one-on-one communication to earn the loyalty of their target audience.

Customer loyalty is much harder to obtain that customer service satisfaction. The most important first step is to satisfy the customer by meeting their expectations. Customers only give a company one chance and if they aren’t satisfied they will not do business with that company again, as well as tell others of their experience. The next step would be to exceed the customer’s expectations. If a business goes above and beyond to assist the customer they begin to build loyalty. The next step is to truly surprise the customer. In order to dominate the marketplace the company must find a way to make them selves stand out with their product or service, accompanied with phenomenal customer service. Once this has been done customer satisfaction and loyalty will be gained. “Acquiring a new customer can cost four or five times more than keeping a current customer” (Bestmark, 2013). So it’s essential to keep the current customer’s happy and coming back for more.

Customer satisfaction and service quality are the two important components that direct anyone’s attention in every concept related to marketing, services, etc. (Spreng and Mackoy, 2006). In today’s competitive era, the success lies in

In my opinion our company is relatively strong in 2 of the 4 characteristics of “analytic competitor” as described in the text. Our goal as company is to be superior in customer service and customer loyalty. To that end we have tools developed that assist everyone in the company and we are committed, from the CEO down to line-level team member, to review the same statistics used for continuous improvement. Where we lack strength is having a distinctive capability and due to some system limitations in data warehousing, we still do quite a bit of individual reporting. Prior to working for this company I worked at the Well Established Casino (WEC) organization for 10 years. I learned quite a bit about standard reporting at WEC. Digging into how things worked and what interpretations were used to categorize casino player behavior was very rewarding. While WEC was superior in bucketing and appropriately setting expectations in future customer behavior, their reporting lacked some details preventing marketing operations from quickly responding to outlier influences and climate changes in the industry. I moved onto HTC where most of the reporting was financial in nature. Having opened newer casino properties our corporate structure did not immediately embrace the need for marketing analysis to potentially improve revenue streams that were already robust enough. I came on board with HTC in late 2010 as the Regional Director of Marketing Analysis when they opened casino number two.

It is imperative to satisfy customers and give them an amazing experience at the company. While it cost less to sell to existing customers and companies can increase profit by selling to the same customers; if customers are satisfied, there is more chance they will come back for more services or products. Satisfied customers are a free marketing for the company. However, it is the opposite if customers are dissatisfied. Dissatisfied customer will tell 8 to 10 people about his or her experience (O’Brien, A & Marakas, G. 2004). If by any reason, representatives see that the customer is not satisfy, they should act fast and fix the problem. Furthermore, there is more chance for sale representatives to sell to an existing customer that to a new customer. A good strategy for customer retention is to reward good customers. Companies can easily do

Similarly, Molinari, Abratt, and Dion (2008) assert that there is a direct and strong link between customer satisfaction and customer loyalty behavior. If the customers enjoy the product or service, they will not be bothered to become loyal to the company. In other words, high levels of satisfaction commonly occur when the customer is delighted or happy with either the products or services provided by a business supplier. As Caceres and Paparoidamis (2005) state, customer satisfaction levels are determined and influenced by many elements. For example, it is commonly admitted that the customers will naturally repeatedly return to the company when things are done right, or in other words, business service companies successfully meet the customer’s expectation (Gil-Saura, et. al., 2009). Furthermore, increases in satisfaction could result to increase customer loyalty. A business enterprise, which could address the elements moderating the level of satisfaction of customers, probably would reach the higher level of loyalty. In other words, customer satisfaction is likely to improve customer loyalty in general.

5. RELATIONSHIP MARKETING: In this competitive era, companies are always looking for ways to develop and maintain a long lasting relationship with customers, employees and even suppliers. Relationship marketing is two way traffic; it goes beyond just making ‘sales’ and companies are beginning to realize. Good relationship with customers is a strategic weapon for any company, this is because long term customers buy more, do referrals and give back valuable and truthful feedback. Keeping a customer requires an extra effort. According to the founder of Walmart: “There is only one boss, the customer, and he can fire

In order to operate a successful and profitable business, certain strategies must be put in place. One very important strategy is customer relationship management. To ensure that every customer has the opportunity to receive exceptional customer service and the ability to become a loyal customer, an organization must follow these steps. First, the organization must evaluate their current customer service strategies and organizational goals. This will help decipher strengths and weaknesses of the organization. Once the organization’s weaknesses are determined, action must be taken immediately. The weaknesses should act as opportunities, while the strengths can be used as something to capitalize off of. If an organization lacks a loyalty program, their next step would be to design one that correlates with their business model and organization goals. Once an organization redesigns their customer service strategies and customer loyalty programs, they will need to accurately apply metrics to successfully measure the value of the changes being made.

Relationship Marketing: Emphasizes customer preservation and fulfilment, rather than a dominant focus on sale transaction and building a relationship with the customer.

This is one of the reasons why there has been a gradual shift towards a relationship-approach. Harker et al. (2006a) quoted the American Marketing Association, to have followed the same approach when it gave the definition of marketing as a business functions and a set of procedure to establish, communicate and provide value to its customers and to manage customers’ relationships in such a way that it is mutually beneficial to all stakeholders. It is now clear however, the shift towards a longer-lasting and more profitable marketing approach from a product-based marketing approach has a better chance of sustainability over longer periods as it is more business-orientated. Relationship Marketing Relationship marketing has been seen during the last decade of the 20th century, as the prevailing thought in developing a marketing scheme both in industrial marketing and consumer marketing (Tseng, 2007) in (Kibeh, 2013). The initial appearance of the phrase ‘relationship marketing’ in the marketing literature was in late 1970s and early 1980s through the research of Dwyer et all (1987) and Berry (1983ab) among

Relationship marketing “transcends the actual product or service to create stronger bonds with consumers and maximize brand resonance” (Strategic Brand Management, P. 182). This marketing strategy understands that customers are the key to success. They treated customers with utmost care. As I mentioned in my personal experience above, Apple created a sense of connection

Sheth and Parvatiyar (1995:261) define relationship marketing as “an orientation that seeks to develop close interaction with selected customers, suppliers and competitors for value creation through co-operative and collaborative efforts”. This definition suggests that businesses should pursue profitable business relationships.

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.