Essay on Customer Loyalty - 2188 Words

The Customer loyalty has been a major and unanimously acknowledged as a valuable asset in competitive markets according to Srivastava, Shervani, Fahey, 2000. As a result, it becomes more important to give power to in loyalty panel particularly when the consumers faces very low switching or moving cost to other product or service, because they are not locked in by a contract (Shapiro Vivian, 2000). It is also become important in competitive markets due to availability of more lucrative and easily available options. The concept of customer loyalty has been around and present throughout in all parts/activities of numerous industries in the past decade (Lewis, 1997). The development of loyalty includes building and supporting a†¦show more content†¦Various authors, such as Evans Laskin (1994), calculated the impact of CRM on customer loyalty, but have not made any distinction between different types of loyalty. They have simply specified that their concept of loyalty go past the idea of industrial loyalty. As a result, the variable chosen to measure the effectiveness of CRM in this study is customer loyalty. Looking into the previous decade many firms refocused to adopt a customer focus view most often through a formal program of customer relationship management (CRM) for example Brown 2000, Kalakota and Robinson, 1999 earlier by Peppers and Rogers, 1997. Latest expansion in information technology has enabled the tool for marketing managers to create a new generation of CRM tactics. One such tactic that thousands of firms have measured and which many have adopted is to establish a customer loyalty program. If we look around for example, we can see such programs/schemes run by many companies for example in US airlines and hotels, Japanese retailing, UK grocery stores, French banks, German car companies, US universities, Italian fashion stores, Australian telecommunications, Indian telecommunication- retail banks and in many other areas. The main objective of such schemes/programs is to tender financial and relationship reward to customers. It is recognizable that the aims of customer loya lty programs, firstly it has been used as a tool to increase sales revenues by raising purchase/usage levelsShow MoreRelatedDeveloping an Effective Customer Loyalty Program12157 Words   |  49 PagesDeveloping an Effective Customer Loyalty Program Barry Berman oyalty programs are offered by both retailers and manufacturers to stimulate continued patronage among consumers through discounts, cash, free goods, or special services (such as free magazines on specialized topics of interest to loyalty program members). While retail cooperatives pioneered loyalty programs through giving members allowances based on their annual purchases, the more modern use of loyalty programs began with RaleighRead MoreCustomer Loyalty : A Brand Image Essay1424 Words   |  6 Pagesexplains that â€Å"customer loyalty is the degree to which a customer will select a particular brand when a purchase from that product category is being considered,† (Levens, 2012, p. 72). This loyalty is present in the relationship that a brand has engaged with the customer, and the resulting attachment the brand has with a consumer (Levens, 2012, p. 72). It is the loyal customer that is most highly sought after by companies, in order to generate the most positive brand ima ge, retain the customer, for theRead MoreCustomer Loyalty in Retail Sector5092 Words   |  21 PagesRole of Customer Loyalty Programs in the Retailing Sector Executive Summary: Customer loyalty schemes (or programs) are explicit efforts by the retailers in different formats to gain the long term patronage from the customers. Loyalty schemes are designed and developed for variety of reasons: to reward the loyal customers, to generate more information about the customer behaviour, buying patterns. It also helps to influence consumer behaviour, and as defensive measure to combat a competing schemeRead MoreCustomer Loyalty For A Company1991 Words   |  8 PagesWith more and more suppliers in the market place, customers have more diversified options regarding products, prices and shopping places. Therefore, marketing departments gradually come up with ideas on retaining current customers which brings in the concept of customer loyalty. Customer loyalty is the ongoing process of customers buying products or services from a specific company (Gustavsson, 2005). For most companies, retaining customers costs less than attracting new ones and also reduces expenses Read MoreEffective Customer Relationship Management - Customer Loyalty Program4616 Words   |  19 PagesGroup Project Title: Effective Customer Relationship Management—Customer Loyalty Program Class Group: Thursday, SEM004 16:30—17:30 Group Member: Leung Mei Wun, May (10626919D) Ngan Ho Shan, Iris (10571756D) Poon Wing Lam, Yvonne (10627025D) Wan Wing Tung, Yuki (10542306D) Wu Kit Wing Ophelia (10504166D) Date of submission: Total no. of words: 2nd December, 2010 3,491 words 1 Content Introduction Background Objectives Importance of Effective Customer Relationship Management Why HiltonRead MoreCustomer Loyalty Programs For Supermarkets And Retailers Worldwide1659 Words   |  7 PagesSupermarket loyalty cards have been wildly used by supermarkets and retailers worldwide since it was introduced in Europe in 1990. Under the customer loyalty program, it was known as ‘The Marketing Information Revolution’ (Blattberg et al. (1994) cited in Mauri (2003)). However, unlike in the past loyalty cards today, they provide customers all types of rewards. Loyalty cards have been used for customer loyalty programs in order to retain customers especially for supermarkets and retailers, and toRead MoreCustomer Loyalty5157 Words   |  21 PagesABSTRACT 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 sitesRead MoreThe Value Of Customer Loyalty2911 Words   |  12 PagesThe Value of Customer Loyalty Introduction The necessity of human is rapidly increasing, from fast food that can be served in less than 10 minutes to services like pet grooming and hotel that are now in demand with the animal lovers. These necessities of humans are allowing more and more business to be opened and would mean economy growth. Since there is a demand of these necessity, there is also demand on business and would mean competition. Marketing the product or services would be difficultRead MoreCustomer Loyalty Program For Hotel Industry1786 Words   |  8 Pages Individual Research Assignment Customer Loyalty By Ganna Kuzavova Professor: Janak Bhawnani Date: February 2nd, 2016 Table of Content: 1. What Is Customer Loyalty Program? †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦....3 2. Customer Loyalty Influence On Hospitality Industry ..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.4 2.1. Advantages of CLP †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.4 2.2. Disadvantages of CLP †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦5 3. Frequent Business Travelers †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦6 4. Future Of Loyalty Programs In Hotel Industry †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Read MoreCustomer Loyalty Programs At The Rapid Changing Business World1484 Words   |  6 PagesIn the rapid changing business world, customer loyalty becomes very important (Dick Basu, 1994). Thus, lots of company use customer loyalty programmes to increase their customers loyalty. Customer loyalty programmes are utilized by companies to offer clients with incentives to purchase their services or goods (Bolton Kannan, 2000). When a client purchases services or goods, the entity provides the client with award credits or points. The client consequently redeems these points for rewards