Abstract This paper discusses customerloyalty, using the company Comcast Corporation as a case study. The paper begins with an assessment of the roots of customerloyalty, which it maintains are in staff loyalty. Next the paper examines how customerloyalty is developed. Then the paper asks how customerloyalty is incorporated into marketing strategy. Finally, the paper studies the affect of customerloyalty on Comcast's customer retention.
From the Paper "Winning customer loyalty begins with winning staff loyalty. Companies that try to win customer loyalty without first winning staff loyalty often find that in spite of great customer loyalty programs and initiatives their results fall far short."
Abstract Customerloyalty describes the tendency of a customer to choose one business or product over another for a particular need; customerloyalty becomes evident when choices are made and actions taken by customers. This paper analyzes and critically evaluates the various methodologies and techniques of customerloyalty in application to the hotel industry in its marketing management, supported by theoretical models, news excerpts, case studies and research articles focusing on the trends and the latest problems/issues concerning the industry. The paper includes a graph.
Paper Outline:
Abstract
Definition
CustomerLoyalty in Hospitality Industry
Efficiency Measurement in Hotel Industry in terms of CustomerLoyalty Theoretical models/techniques of Customerloyalty programs in Hotels
Latest Problems/Issues Concerning the Industry/Organisation
Conclusion
References
Bibliography
From the Paper "Academic analysis of the literature on customer satisfaction within the hotel industry brought forth an amazing lack of empirical data. Lewis and Nightingale (1991) commented that hotel companies have difficulty in measuring customer satisfaction and, in spite of the proven inefficiency of comment cards, many still rely upon them. However, they also make the point that Marriott regularly surveys its customers randomly and chains like Sheraton are always looking at how the room comment cards can be improved. Schneider and Bowen (1985) empirically demonstrated that customers and employees share perceptions and attitudes. It is therefore appropriate to use the employee perceptions of customer satisfaction as a reasonable measure of organisational performance in regard to customer loyalty."
Abstract The paper examines the issue of whether or not customer service is more important than loyalty programs. The research study examines the primacy of customer service as a predictor of customerloyalty. The paper provides a literature review, a study and questionnaire substantiating its basic thesis, and concludes with a review of why studies such as this one are so important to the hospitality industry.
From the Paper "Building Customer Loyalty through Quality: Why Substance still wins out Introduction In recent years, it has become increasingly evident that hotels (and motels) face enormous challenges as the twenty-first century approaches its second decade. Not least of all, these businesses are confronted with a much more demanding public than ever before as well as by a public that is far more conscious about what it can - and cannot -demand from the industry. Given this state of affairs, hotels understandably want to keep the customers they do have as loyal as possible. "
Reviews "European Business Journal", article "E-CustomerLoyalty: Applying the Traditional Rules of Business for Online Success" by Frederick F. Reichheld, Robert G. Markey, Jr. and Christopher Hopton.
Abstract This paper introduces, discusses, and analyzes an article on e-customerloyalty. It looks at the article's view of creating and maintaining a loyal customer base, its discussion of the impact of the internet on business, and the reasons provided for the failures of many on-line businesses. The paper consists of a one-page synopsis and two-page critique of the article.
From the Paper "This article goes into detail about what many consumers have known for a long time. The most successful merchants, both online and off, are those who recognize the importance of developing a good relationship with their customers, thereby creating customer loyalty and greater profits for their company. The paper argues that many online merchants do not recognize that many brick-and-mortar business rules still apply to their businesses online. "They often forget that the fundamental rules of successful business still apply" (Reichheld et al 173). The article goes on to discuss two particular companies foray into e-commerce, and their experience with building a profitable company online. It continues with information on how to build customer loyalty, and identify your customer. It also provides ideas on how to build trust, get to know your customer, and empower your organization to develop great customer relationships."
Tags: succesful, merchants, online, customers, e-commerce, internet, boo.com, service
Abstract This investigation presents an in-depth study of marketing, its techniques and different applications depending on the climate in which the marketing takes places. The paper defines the elements of distinctions between traditional and e-marketing. It looks at how different companies - both financial and retail - currently use integrated marketing concepts in their relationship marketing strategy as a way to encourage customer service and therefore strengthen customer relations. The paper offers an in-depth look at the marketing tactics utilized by Countrywide Financial Corporation and its international offshoot of Global Home Loans, located in the United Kingdom. This includes some background history on the organizations and their relationship. This paper also defines important terms to allow better understanding of how marketing, cost and customerloyalty form a direct and vital relationship with each other, regardless of method, agent or presence they are applied to. The paper focuses on different attributes of how these concepts work together to make business practices possible. This includes an exploration of the techniques used to market a product. It also focuses on how market segmentation and demographics play an important role in defining the market place but also allow an organization to target the best possible "match" consumer for its product or service. The paper looks at how a proactive marketing analysis allows an organization knowledge of the consumer in order to build a lasting relationship. It also explores the implications of such marketing techniques and how different degrees of brand presence within the market can create different concerns regarding risk and too much exposure. This also includes any threat to protection of intellectual property as well as the organization's image and customer relations.
Paper Outline:
Introduction
Purpose of the Study
Company Profile
Literature Review: The Role of Switching Costs
Traditional Marketing Strategy-Brick and Mortar
Knowing the Market and Demographics
Globalization
CustomerLoyalty E-Marketing and E-Commerce
Implications and Concerns Regarding E-Marketing
Conclusion
References
From the Paper "The best way to utilize marketing to an organization's best benefit is to simply know the market in which business is done. It is imperative a company knows its target and be flexible to new targets. An organization can remain at the forefront by having a cutting edge attitude toward change within the target audience. Gordon writes, "The mood of the marketplace profoundly affects a campaign's success. It is important to respond correctly" (2003, p. 1). Also to remain competitive, an active pace is needed. Instead of allowing the market to define the marketing strategy, the organization should strive to define the marketplace. This can be done through incorporating innovative ideas across the board."
Abstract The paper looks at health care information via the Internet that has changed the way individuals manage their health and receive health care information. The paper explains that this has greatly impacted customerloyalty to a doctor since one can order medication or research symptoms, treatments and long-term prognoses online. The paper therefore concludes that customer satisfaction has become much more important to the healthcare consumer than customerloyalty to a doctor.
From the Paper "When it comes to healthcare, people want to be satisfied. They often feel as thought they are not getting enough for their money, their doctors charge them too much, and their insurance companies do not pay for enough treatments and procedures. This being the case, they also doctor-shop to either (a) find a doctor that actually works the way they think he or she should, or (b) find a doctor that tells them what they want to hear. This comes down to a difference between customer loyalty (to one doctor, for example), and customer satisfaction (going from one doctor to the next until one is satisfied with the answer)."
Abstract This paper explains that the article "Customer/Brand Loyalty in an Interactive Marketplace," by Don Schultz and Scott Bailey identifies why some customers simply stop being brand-loyal for no apparent reason. The author points out the relationship between marketing research and marketing strategies and tactics based on the article.
From the Paper " In "Customer Brand Loyalty in an Interactive Marketplace", Don Schultz and Scott Bailey explain the goal of marketing research ... developing loyal customers...but identify a glaring disconnect between the loyalty that marketing research indicates will occur and the measure of loyalty that actually occurs. According to Schultz and Bailey customers who claim satisfaction in various research situations often drift away from the company or the brand anyway. Even customers who have exhibited brand or company loyalty through their purchases over time sometimes simply ...."
Abstract This paper analyzes the factors that affect a customer's loyalty in the online services of financial service companies. It specifically provides evidence from the Greek stock market. The paper provides a conceptual profile of the financial services industry and how it has been affected by and has made use of innovations in information technology in recent years. It also looks at the four major pillars of the financial services industry. The paper then shows that the theory base for brand loyalty has been based on numerous efforts to model basic consumer behavior in terms of how consumers evaluate alternatives and make purchase decisions.
Table of Contents:
Review of the Literature
Definitions of Terms
Background and Overview
The Financial Services Industry and Information Technology
CustomerLoyalty Considerations in the Financial Services Industry
Brand Loyalty and the Importance of Information Technology
Trust and Service Quality Issues
Costs of Switching Services
Chapter Summary
From the Paper "In addition, Das (2004) reports that recent advances in information technology have proven to be a facilitating factor for many financial services companies, improving the capability of both investors and creditors to manage their portfolios and undertake better risk analysis of credit and market risks. As Gerstman and Meyers emphasize, though, consumers will still seek out those financial services that can provide them with the best mix of online and traditional services that allow them to maintain existing market share and gain additional inroads on their competition. These authors note that, "Across that entire spectrum, the comprehensive definition of customer or brand experiences will help to shape and guide the way companies manage their brands and achieve competitive advantage" (p. 21). In the final analysis, then, customer satisfaction in and of itself is not sufficient and differentiation must be sought in the conscious development of customer commitment, i.e. loyalty and devotion that transcends short-term 'feel good' relationships by building interdependencies, shared values and mutually beneficial strategies (Lewis & Varey, 2000)."
A review of the article "Bases of e-Store Loyalty: Perceived Switching Barriers and Satisfaction" by George Balabanis, Nina Reynolds, and Antonis Simintiras.
Abstract This paper reviews and discusses an article by George Balabanis, Nina Reynolds, and Antonis Simintiras on the subject of customerloyalty to e-stores. According to the paper, the article looks at customerloyalty, what factors contributed to it, and under what circumstances customers would leave one e-store for another.
From the Paper "They pre-tested their questionnaire on only ten participants. This raises some question about their instrument. Those questions could be answered by using it with a wider and more diverse population. The authors report that their sample had about the same amount of experience with the Internet as the average UK e-store shopper - 35 months, with a standard deviation of a little over 16 months, but they did not document that assertion. 35 months is less than three years, and since the internet has been around for quite some time, that statistic might benefit from confirmation.
The authors' results provided information useful to e-store retailers. The looked at a factor called "convenience barriers," or how much trouble it would be for a customer to find an alternate e-store. Their survey suggested that shoppers find using many stores inconvenient, but that they also worry about security."
Discusses the three challenges that are associated with a global market: building customerloyalty, retaining intellectual property rights and securing information systems.
Abstract In this article, the writer notes that in today's global business environment, companies have unprecedented access to markets around the world. The writer points out that though there are many advantages to globalization, companies must be prepared for the challenges that it presents as well. The writer maintains that in order for a company to succeed in a global market, a company must develop and follow a carefully planned strategy. This involves three challenges that are associated with a global market: building customerloyalty, retaining intellectual property rights and securing information systems. This paper explores the importance of these top business challenges and suggests methods by which companies can overcome them.
Outline:
Introduction
Challenge 1: Building CustomerLoyalty Ways to Overcome Challenge 1
Challenge 2: Protecting Intellectual Property in a Global Environment
Ways to Overcome Challenge 2
Challenge 3 - Information Security Protection
Ways to Overcome Challenge 3
Conclusion
From the Paper "The main goal of implementing a customer loyalty program is to prevent a company's existing customers from turning to its competition. The objective of any loyalty solution is to treat customers as if they are truly cared about and provide them with the products and services they seek at the right time and at the right place. With so many purchasing options, customers are savvy enough to detect a company with sub-par service and do not tolerate it."
"Every customer loyalty initiative should start on the front line with the customer service department, since they are in contact with customers on a daily basis. A business should employ a consistent customer service strategy that ensures that each customer receives a positive experience with the company. Customer service representatives must be empowered to not only answer inquiries and close sales, but to build customer relationships. To effectively create relationships with customers, representatives must be equipped with CRM databases to know the customer's history and provide the most relevant offer, have the authority to make business decisions in the best interest of the customer, and be enthusiastic to establish a genuine bond with the customer."
Abstract Based on ten books written on the subjects of consumer behavior and customer service, this paper sets out to show whether customer centricity has been the focus of businesses for some time, and whether it has been addressed correctly. The writer explains that the study of customer retention information shows that what it takes to keep customers coming back is quite different from what it takes to attract new ones, and discusses various types of customerloyalty programs. From the literature four specific areas that need to be examined in order to help businesses improve customer focus are identified, as well as six factors that are often seen as imperative in improving customer retention, and five specific dimensions of service quality. The paper concludes that although most studies have indicated that retaining old customers is what really boosts business growth, many businesses still persist in spending more to get new customers who will cost them money by leaving, instead of spending less to retain loyal ones.
From the Paper "It is significant to remember when looking at customer centricity that people seldom stop patronizing a business simply because of ordinary interactions that they deal with when they shop there but instead because of the failure of the specific organization to handle situations that could be potentially problematic to the satisfaction of the customer (Bowen & Lawler, 1992). Personnel who come into contact with customers need to be able to think for themselves, take responsibility for their actions, and respond well to the pressure that often comes from customers who are angry or upset (Bowen & Lawler, 1992)."
Tags: success, customer satisfaction, effective personnel, problem solving, performance coaching communication
Abstract This paper presents a general review of the literature on customerloyalties to understand the return on investment (ROI) for holding a member for one, five or ten additional years and to understand the cost-effectiveness and programs of various companies in the banking, computers, and other competitive environments to demonstrate in what way membership organizations channel their resources. The author uses an exploratory comparative case study to analyze specific companies: Pacific Coffee Company, Canadian Imperial Bank, First Union Bank City Super, USAA, Mercedes, SunExpress, Telesales and PC Universe. The paper states that companies must develop a strategic that focuses their energy and resources totally on customer retention, customer relationships and the creation of customerloyalty and value so that attrition can be quickly identified and remedied and defection can be prevented. Tables
Table of Contents
Introduction
Introduction
Background
Purpose of the Study
Hypotheses
Definitions of Terms
Organization of the Remainder of the Study
Literature Review
CustomerLoyalty The CustomerLoyalty Pyramid
Store Loyalty and Brand Loyalty Return in Investment (ROI) of Customer Retentions
Customer Lifetime Value (CLV)
Research Methodology
Purpose of this Study
Introduction
Participant Samples
Research Design
Conclusion
Research Findings
Pacific Coffee Company
Canadian Imperial Bank
First Union Bank
USAA
Mercedes
SunExpress
Research Analysis
Conclusion
Recommendations
From the Paper "Determining the CLV, or economic worth of a customer, is, in principle, a straightforward exercise. To calculate CLV, project the net cash son, household, or company whose revenues over time exceed, by an acceptable amount, the company costs of attracting, selling, and servicing that customer. This excess is called customer lifetime value (CLV). Customer lifetime value should be an important construct in designing and budgeting a number of marketing decisions such as customer acquisition programs (Dwyer, 1989). Recognizing its importance, many researchers in direct marketing have studied CLV and its managerial applications "
Abstract This paper examines how loyalty to a particular brand of product may be the way forward for future marketing strategies. Brand loyalty is a way of creating a relationship between the customer and the company so the customer does not go elsewhere.
From the Paper "In the future then, for all suppliers of both products and services, how to retain customers will be an important part of the marketing mix. The focus will be on relationship marketing, with companies needing to consider how to build an effective relationship between itself and the customer. Just as Groonroos predicted, companies will no longer be dealing with anonymous masses of customer. Instead, the customers will be considered in detail, with companies considering how to provide for the full needs of the customer."
Abstract Popularity of loyalty programs is increasing, both in terms of the number of programs offered by merchants and in participation by customers. Yet, it seems that both groups remain ill informed of how the programs actually work and the true benefits and costs. This paper explores the reality of loyalty programs and concludes that they can be beneficial for all parties provided that they fully understand what the programs accomplish.
From the Paper "Research suggests that the demand-side success of loyalty programs is less than promised. It is difficult to change established patterns of repeat-purchase behavior and competition quickly develops counter responses that mitigate the impact of the program. However, it is possible to reap advantages from loyalty programs such as maintaining customer loyalty and brand share, improving accessibility and brand awareness, and offering incentives expected by customers."
Abstract The paper discusses the various types of loyalty programs, their key features and their effects. The paper reveals the new elements of the Starwood Preferred Guest Program and provides recommendations to the director of the Hilton's HHonors Worldwide Program on actions designed to answer Starwood's initiatives.
Outline:
Introduction
What a Frequency Loyalty Program is
How Frequency Loyalty Programs Work
What Loyalty Programs are Supposed to Do...
Can These Guest Loyalty Programs be Measured
Are Loyalty Programs Successfully...
Memo to Jeff Diskin
The Different Impacts These Programs Have on Redemption Across Hilton's Offerings
How Hilton Should Respond to the 4 Key Features of Starwood's Plan
Recommendations
Conclusion
From the Paper "Customer loyalty is particularly important to the hotel industry, because most hotel-industry segments are mature and competition is strong. Reichheld and Sasser (1990) found that a 5-percent increase in customer retention resulted in a 25- to 125-percent increase in profits in nine service-industry groups they studied. Thus, the goal of relationship marketing is to build customers' loyalty based on factors other than pure economics or product attributes, and building a relationship with customers should be the strategic focus of loyalty programs."
