Loyalty

Nowadays, most companies tend to compete to gain the customer’s loyalty by providing purchasers diverse programs namely creating brand communities, offering excellent customer service and developing loyalty programs. Customer loyalty means people buy products from the same manufacturer repeatedly rather than from other suppliers. Typically, as marketing managers, are providing excellent facility to obtain the customer’s needs and interest in long-lasting relationship, for instance, loyalty program. It considered one of the value propositions that a marketer can offer a potential customer whichever can come in many forms.

In our competitive market, maintaining customer loyalty is obviously a key goal for any marketing managers, customer experience programs are the most effective way to drive customer loyalty when customers are engaged on an emotional, intellectual, or even spiritual level, and when a customer cherishes a product or service before, during and after its use (Bloemer and Kasper, 1995). Therefore, many companies offer loyalty programs which can caused them a reliable revenue stream and a sustained profit due to the customer’s deeply held commitment to re-buy a preferred product or service despite marketing efforts. According this theory, marketing managers should provide special offers namely rewards program, unquestionably return policy and cash back promotion to obtain customers to buy the product more. As a result, satisfaction affects the buyers’ purchase behavior, ideally, they can become repeat customers.

The customer loyalty has been thoroughly explored over the years with positive result. Nordstrom, an American upscale retailer, has been experiencing with its exceptional customer service to improve its custom...

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... this behavior, the business can suffer a reduction in long-term and short-term profits.

In conclusion, the loyalty program theory has been widely accepted, although further analysis regarding this phenomenon continue. Building costumer loyalty by providing loyalty program might be very convincing, since the program itself includes the strategy to differentiate the company from competitors as retaining current customers is less expensive than acquiring new ones. However, the program might be less interesting for experienced customers also the people that have signed up to the program due to their assumption about the value of brands based on only particular factor e.g. price, unless the marketing managers regularly seek input from their customers – by using objective and valid measurement tools and techniques – so the company could improve and keep their existence.