...Customer loyalty has become a central goal of modern business. With each additional year of a relationship, customers become less costly to serve. Over time, as the loyalty life cycle plays out, loyal customers even become business builders: buying more, paying premium prices, and bringing in new customers through referrals (O’Brien & Jones, 1996). A rewards program can accelerate the loyalty cycle, encouraging first or second year customers to behave more like a company’s most profitable tenth-year customers – but only if it is planned and implemented as part of a larger loyalty management strategy (O’Brien & Jones, 1996). 4/5 consumers agree that companies should reward loyal customers instead of offering the best deals to new customers. This is particularly relevant to FMG who strives to compete on quality, not price. FMG has the need to adapt its current loyalty program to be more in-line with modern discussion around the topic. West (2004) found that when monetary rewards are given they tend to be spent on day-to-day living and the reward is not as morale boosting as hoped. Our current 1% discount per year model thus fails to provide our clients with the intended feeling of goodwill towards FMG. Moreover, as customers become accustomed to receiving a reward under a loyalty program they begin to view the rewards as an entitlement (Haisley & Loewenstein, 2011). This implies that while our reward magnitude is increasing over time, their perceived value will not increase...
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...Customer Loyalty 2013 (Promotion change) GNC new Member Pricing Program known as the Member Price Program (allows members to access GNC's products at a reduced cost) A previous GNC loyalty program, known as Gold Card, has nearly 7 million active members who will be transferred to the new program. For GNC, which sells commodity items such as vitamins and supplements that customers are likely to repurchase on an ongoing basis, a strong loyalty program can be a true differentiator from its competition. The brand believes its new pricing program is just that. - In less than 2 months, GNC Holdings has added 3 million new customers to its Member Price Gold Card loyalty program that rolled out during May and June Company accomplished its primary goals regarding the new Membership Price Gold Card customer loyalty program: * New Gold Card member acquisition * Increased flexibility to manage pricing * More transaction growth spread throughout the month * Improved price perception * Better program awareness among new customers. Most significantly, the new Membership Gold Card program addressed the biggest customer complaint against the previous version of the program, which was the inability to use the card throughout the month. Under the new Member Price program, customers save up to 50% on every item everyday at any GNC store or on their website. Under the old program, customers paid $15 for a one-year membership and received 20% off purchases during the...
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...Importance of Customer Loyalty [Name of Student] [Institution’s Name] The Importance of Customer Loyalty Introduction Creating and retaining loyal customers is significant to the profitability of any business. Every supplier wants to maximize his profitability by creating and retaining potential customers. This assignment strives to understand the importance of customer loyalty in technology management. Discussion Customer loyalty can be reflected through measuring the management’s success in creating and retaining long term interaction with customers. Customer loyalty is significant to running a profitable business. However, this loyalty may be company specific or product specific. For this purpose, I researched a famous social networking website, facebook. Facebook’s management is able to efficiently create and retain its potential users. Facebook enhanced its brand loyalty by continuous improvement in the features and layout of the web page. Therefore, it is still drawing more and more potential customers, even today. Customer Loyalty is Linked to Competitive Advantage Loyal customers need to be targeted by a company’s thoroughly advocated retention program; as such customers tend to give more loyalty to the company. The company’s retention program may include interactive sessions with the customers by regularly communicating them the ideas to contribute towards the enhancement of the products. This opportunity will enhance customer loyalty, which in return...
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...Customer loyalty Customer loyalty is both an attitudinal and behavioral tendency to favor one brand over all others, whether due to satisfaction with the product or service, its convenience or performance, or simply familiarity and comfort with the brand. Customer loyalty encourages consumers to shop more consistently, spend a greater share of wallet, and feel positive about a shopping experience, helping attract consumers to familiar brands in the face of a competitive environment. Customer loyalty is all about attracting the right customer, getting them to buy, buy often, buy in higher quantities and bring you even more customers. However, that focus is not how you build customer loyalty. * keeping touch with customers using email marketing, thank you cards and more. * treating your team well so they treat your customers well. * showing that you care and remembering what they like and don’t like. * You build it by rewarding them for choosing you over your competitors. * You build it by truly giving a damn about them and figuring out how to make them more success, happy and joyful. What is Customer Loyalty. Understanding the true definition of customer loyalty There are many definitions of customer loyalty. Yet each of them fails to realize that loyalty runs hand-in-hand with emotions. Customer loyalty is the result of consistently positive emotional experience, physical attribute-based satisfaction and perceived value of an experience, which includes...
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...Abstract The Study of Customer Loyalty Factors in the Mobile Telecommunications Industry in China This article is a study of Chinese telecommunications service customer loyalty factors and the impact of the internal mechanism. The industry empirical study reveals the communications services industry, the impact factors of customer loyalty, and the interaction between these factors mechanism. With the increasingly fierce market competition and increase costs for customers, cultivate and maintain long-term customer loyalty is a business enterprise can be an important factor. On the one hand, enterprises have to get a good income, in addition to the core technology and improving product quality, but customer satisfaction, service quality and Enterprise Image will to some extent affect on customer loyalty, loyal customers are the main profit source. On the other hand, when supply exceeds demand in the market environment, the cost to acquire new customers than to maintain existing customer costs, but the profit contribution of new customers is far less than the original customer. Finally, the loyalty of customers through word of mouth to bring new business customers. Therefore, the development of customer loyalty strategies, research customer needs and maintain long-term two-way interaction with the customer relationship business and academia has been the focus of attention. Customer loyalty in the communications industry, more and more attention, is the communications business...
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...Walmart Customer Loyalty Program Save Money, Live Better, Reward Yourself! Travis Godderidge Rick Hayes Darrell Johnson Chad Mikels HBM 581 Services Management Section 2 Team 5 February 24, 2013 [Type text] Table of Contents Executive Summary Background Research Companies researched, program names and descriptions Description of the Proposed Program Company overview Target customers Suggested Program Names Features and Benefits Terms and Conditions Duration of the Program Initiating and Marketing Tracking Device for Customers Estimates costs to implement and sustain the loyalty program Summary and Recommendations References 1 2 3 8 9 9 9 10 11 12 13 14 15 16 Executive Summary In the fierce world of global discount retail competition, differentiation is critical to long term success and survival. Walmart was founded on the differentiating factor of the lowest prices for the highest quality products. While this has served Walmart well and will continue to do so with global sourcing and supply chain management to secure the best products at the best prices, an expansion of the services provided to the customer and the ability to obtain demographic spending information and trends will prove invaluable to Walmart’s continued success and rapid global expansion. Additionally, programs that help retain customers once the customer has entered the store will increase market share more rapidly and increase...
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...CUSTOMER LOYALTY : THE CASE OF MOBILE PHONE USERS IN UNIVERSITI UTARA MALAYSIA Prepared by Meguellati Achour Pn. Nor Pujawati Md. Said Dr. Ali Boerhannueddin Abstract Service quality, switching barriers, and brand image are the major antecedents of customer loyalty, and loyal customers may buy more, accept higher prices and have a positive word-of-mouth effect. Also we know that the cost of selling to new customers is much higher than the cost of selling to existing customers, also the cost of attract new customers is much higher than the cost protect existing customers ten times. Although this fact is apparent to everyone, many companies are still losing customers at a formidable rate. In this context the main aim of this research is to examine the relationships between these factors and customer loyalty in the Universiti Utara Malaysia sector. Based on the theoretical model, a comprehensive set of hypotheses were formulated and a methodology for testing them was outlined. These hypotheses were tested empirically by questionnaires to demonstrate the applicability of the theoretical model. The results indicate that service quality, switching barriers, and brand image are separate constructs that combine to determine the loyalty, with service quality and switching barriers exerting a stronger influence than brand image. Finally hypotheses H1, H2 were supported, while hypothesis...
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...Management Theory Sustainability of Customer Loyalty Presented to: Dr. Silva Karkoulian Prepared by: Siham Kibbi Aline Ibrahim Mohammad El Mogharbel Mounir Ghazal Date: 27/11/2013 Paper Outline * Introduction: Four major approaches toward achieving sustainable customer loyalty * Corporate Social Responsibility: CSR plays a significant role in developing customer's loyalty * Customer Relationship Management: Delivering superior customer value has become a major concern targeting the buildup of a sustainable competitive advantage * Product/Services Cost and Price: Pricing strategies are considered to be critical aspects for creating competitive advantage and customer loyalty * Human Resources: Promoting sustainability requirements through HR management * Conclusion: Management, employment, social responsibility, and affordable prices are all keys to give customers a reason to come back Introduction Behind a sustainable business, there are many successful strategies to achieve customer loyalty. Fostering our customers’ decision in keeping a relationship with our company is not an easy job. Thus, attaining sustainability of customer loyalty is a key for a major long- term success of our organizational goals. It is our responsibility to create an attractive yet profitable business which focuses on the ways that not only satisfy but also keep a high satisfaction level of our customers and urge them to continuously seek...
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...Value of Customer Loyalty Yang, 2004 mentioned that the customer loyalty can be generated through improving customer satisfaction and offering high product or service value. He further suggested that the firms may focus on five key dimensions to identify the customer loyalty by providing quality customer services, performing the service correctly by executing transactions accurately, providing an appropriate range and offering features to target customers and ease of use and security or privacy. Previous studies Service Quality in the banking sector: the impact of technology on service delivery (Joseph, McClure and Joseph, 1999). The study examined the role that technology plays in Australian banking and its effect on the delivery of the perceived...
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...Customer Loyalty Customer Loyalty by definition is a feelings or attitudes that incline a customer to return to a company, shop or outlet to purchase again, or else to re-purchase a particular product, service or brand. In general, the customer loyalty starts with a purchase, and ends with repurchase. Customer staying longer with the company tends to decrease maintenance cost, less prone to price fluctuation and good reference to other customers. “It costs five times more to acquire a new customer than to retain an existing one” (Pfeifer, 2005). For company to remain profitable it is essential for the company to retain its current customers; In other words take care of current customer base before go after new ones. In today’s global market place competition, it is more effective business strategy to retain customer rather than continuously trying to acquire new customers (Anderson, 2004). Empirical data study from (Hallowell, 1996), illustrates that there is a direct relationship between customer satisfaction to customer loyalty, and customer loyalty to profitability. An estimate of the effects of increased customer satisfaction on profitability suggests that attainable increases in satisfaction could dramatically improve company profitability. In this age of internet, customers are empowered with different source of information over the various communication mediums (Griffin, 2002). Now, a company must also allow customers to pull the marketing information they want, when...
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...Final Report Business Research Methods Topic Study the influence of Service Quality with product leads to customer loyalty in Telecom Sector (Ufone) Submitted by: Sr. # Group members: Reg. No.# Muhammad Adnan L1S13MBAM2049 Muhammad Asim L1S13MBAM0027 Nabil Abdul Majeed L1S13MBAM2012 Saad Rafique Ali L1S13MBAM0047 Huma Zafar L1S13MBAM2010 Sameera Waheed L1S13MBAM2050 Submitted To: Prof. Amna Zulfiqar Signature: Table of contents Page # Introduction 03 Importance/ significance 04 Explanation of Variables 05 Service Quality (independent variable) 05 Customer loyalty (dependent variable) 05 Relationship between service quality and customer loyalty 05 Objectives 05 Theoretical framework 06 Operationalization 06 Hypotheses 07 Research design 07 Purpose of study 07 Nature of research 07 Population 07 Sampling technique 08 Study setting 08 Time horizon 08 Unit of Analysis 08 Instrument 08 Data Analysis 08 Reliability 08 Description statistics 09 Correlation 10 Conclusion 12 Recommendation 12 Practitioner 13 Reference 14 Introduction For every person cellular service has become a need...
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...A STUDY ON CUSTOMER LOYALTY TOWARDS E-BANKING SERVICES ABSTRACT: One of the modern skills required in the present competitive business world is winning new customers and retaining the existing ones. Thus, business strategists and practitioners are giving great importance to Customer Relationship and Customer Loyalty; irrespective of the nature and size of the business. Today the banking industry more concentrates with the customer relationship and customer loyalty. So bankers are to achieve their goal with the help of e-banking services. E-Banking is a young way for banks to reach new and old customers. Timely adoption of E-Banking is significant for all banks to have secure future business. Banks are facing extremely intensive competition from non-banking sector, thus they have adopted a more aggressive approach to fight competitors for financial services’ market share. To make this study more authentic primary data is collected from the respondents of Tiruchirappalli District and statistical tools are used for analysis and reach on valid conclusion. Key words:Customer Satisfaction, Customer Loyalty and E-Banking INTRODUCTION: As bank wants move very nearer to the customers, increase its basic operational strategies, move towards international trade and need of quick transfer of money etc., and sothere are using theElectronic Banking services. E-Bankinggenerally implies a service that allows customers to use some form of computer to access...
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...introducing the loyalty programs by stores. Uncles (2003) proposed two aims of customer loyalty programs. First is making a better relationship between the store and customer. So this is beneficial to sustain the current customer base in good position. The second aim is to rise a revenue by increasing purchase levels. The scholar believes that loyalty programs are popular because they can increase profits by reaching both of these aims. One view of a loyalty program is that, it works as a marketing tool targeted to build customer loyalty (Dowling & Uncles, 1997). Another view is that loyalty program is marketing plan constructed to give reward to customers (Liu, 2007). Jan Hillesland (2013) proposed that purpose...
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...ISSN 2277-8616 Impact of Customers Satisfaction And Customers Retention on Customer Loyalty Inamullah khan Abstract-The purpose of this study is to examine the importance of future customer’s relationship using customer satisfaction, and customer retention on customer loyalty in telecom industry of Pakistan. Questionnaires were distributed through electronic mail and self administered for data collection and linear regression analysis was used. The results show that customer satisfaction has significant while customer retention has insignificant impact on customer loyalty. The implications of the study are that a company should better manage their relationships with the customers as a competitive policy in mobile telephone marketplace. The weak side of the study is that it is limited to a single industry of mobile telecom industry. Key words: Customer satisfaction, Customer retention, Customer loyalty Jel code: M30 ———————————————————— 1. Introduction Customer loyalty is the focus in the research and It turn into an important concern for management only due to concentrated competition especially in service industry (Bodet, 2008). In emerging business, competition customer loyalty plays very crucial role for achieving the competitive advantages (Lin & Wang, 2006). It is significant important to analyze it in the context of customer retention and customer satisfaction, these two variables are of immense important to analyze the customer loyalty. Firms can maximize level...
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...Important of Customer Satisfaction and Loyalty in Business. 1.0 Introduction Customer satisfaction and loyalty is two important keys to be success in the business. It must be implement in all business areas such as servicing, hospitalisation, health care and others. In business environment, quality improvement have become part of everybody life and not a task or duty anymore. (Mehra & Ranganathan, 2008). It is not enough if only focus to satisfy the customer and it won’t be good to business until get the repurchase power from customer.(Kandampully & Suhartanto, 2000) Lot of research on customer satisfaction and loyalty has been done, especially on retention and economic performance.(Kristensen & Martensen, 1996; Rucci, 1998; Duboff & Heaton, 1999; Edvardsson, 2000; Bernhardt, 2000; Eskilden & Kristensen, 2013). More than that, this two keys also play role in business for revenue improvement, profitability and cash flows.(Heskett, 1994; Reichheld & Teal; 1996, Itner & Larcker; 1998; William & Nauman, 2011). This to make sure company has more than enough fund, can expend and become stronger. We will see how important this two keys in order to make business running smooth and at the same time can achieve company target. At the end, customer will get what they expected and business will get positive impact and avoid something bad from appear. 2.0 Customer Satisfaction and Customer Loyalty 2.1 Customer satisfaction...
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