Got a tricky question? Receive an answer from students like you! Try us!

Building Lasting Customer Loyalty. - Essay Example

Only on StudentShare
Author : avery72

Summary

One of the first statements the author mentioned about customer loyalty is that it is more expensive and time consuming to build loyalty with new customers than to create loyalty with your existing customers…

Extract of sample
Building Lasting Customer Loyalty.

The variable that drives customer loyalty the most is price. A company that has been able to build tremendous customer loyalty because they offer better price than the competition is Wal-Mart. A lot of customer supports private label brands because they offer greater value than national brands. The quality of the product is another important variable when a company is trying to build customer loyalty. Customers are willing to pay more for products of higher quality. Three additional variables that drive customer loyalty are location, selection, and service. Companies that are able to achieve customer loyalty obtain lower customer switching, increased profitability, and great word of mouth advertising. Six key elements of customer loyalty are: a) build on the foundation of a brand; b) use price to communicate a fair value; c) engage customers with great customer experience; d) recognize good customers; e) reciprocate customer loyalty; f) build intimate relationship with best customers (Bradner, 2007). If your customer has a business that offers items that your company uses it is a good idea to purchase from them to support the business of a client that is providing you with revenues. Marketers must pay close attention to their top customers to ensure customer retention of these key clients. Four types of loyalty tactics are price, experience, programmatic, and relationship loyalty. In the airline industry a company that has had success by offering low fares is RyanAir. s. ...
Download paper

Related Essays

A Study of Relationship Marketing on Customer Satisfaction
Approach …
9 pages (2259 words)
How to Sustain Customer Loyalty towards Brands
The researcher states that brand loyalty is the final objective a company sets for a branded merchandise. The importance of brand loyalty cannot be underestimated due to the fact that as brand loyalty increases, the vulnerability to the competitive actions is reduced which is very important in the cut-throat competitive era of today. The customer’s adherence to a particular brand increases the market value of the brand and helps the organization to have a competitive edge over the rivals. The brand loyalty also provides confidence among the organizations to launch a new product and to get…
71 pages (17821 words)
The importance of customer loyalty
The study presents that every consumer desires to purchase a product from a brand that she/he perceives to have the best product features, images and of the best quality. It is these perceptions that bring about the products consumer loyalty. Brand loyalty begins with the purchase of the product for trials, and if the products quality is satisfactory, they become consistent in purchasing the product. Brand loyalty is the consumers repeated intention or behavior to continually repurchase the commodity. Brand loyalty is defined as the strength of preference towards a brand than other available…
12 pages (3012 words)
Significance of Service Recovery Effects on Customer Satisfaction/Loyalty
Further, the research results showed that their was a correlation between service recovery and customer loyalty. 1. Introduction The concept of service recovery is both a business function and a critical focus point from the marketing perspective. The hotel industry is majorly based on offering intangible services and this makes service recovery an important business strategy. Essentially, service recovery entails the measures that an organization puts in place to respond to failures in service delivery. The hotel industry is prone to several variables that make it necessary to put in place…
10 pages (2510 words)
employees contribution in customer satisfaction, customer retention and customer loyalty in SME retail organization like SUPERVA
The peripheral economies have not been able to restructure their economies and introduce reforms to enhance productivity and competitiveness of their economies. 1.1.2 The Irish Economy The Irish economy has been one of the most successful in the world but it has also been among the hardest hit during the economic recession (European Commission, 2012). Up to 2007 Ireland experienced strong economic growth and the living standards in Ireland caught up with the world standards. This occurred as more number of workers entered the labor market. Additionally, higher levels of education resulted in…
20 pages (5020 words)
Impact of service quality on customer satisfaction and customer loyalty an application on the banking sector
With the aim to evaluate the impact of service quality and customer satisfaction on customer loyalty, three objectives were set in Chapter I. Based on a qualitative approach, only secondary data has been used for this study. With customer loyalty as the dependent variable, three independent variables – perceived value, service quality and customer experience have been considered in this study. The study finds that certain dimensions of service quality directly impact customer loyalty - reliability, empathy, responsiveness and assurance. Staff training is thus of importance in delivering…
40 pages (10040 words)
Customer Portfolio Management
Customer preferences and customers’ attributes helps businesses to decide upon what products and services should be offered to the customer segment and how it should be marketed and priced so that it matches customers’ requirements and desires. This research paper would look into marketing concepts and theories, which helps businesses to build and maintain a customer portfolio. For this purpose, the researcher has gone through and understood various theories and research works to elaborate on the concept of customer portfolio management. Content of the Customer Portfolio The content of the…
10 pages (2510 words)