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Reflection On Customer Loyalty

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With the intensification of the competition in the business world, retailers have had to come up with programs meant to help them attract, understand, retain, and manage the cost of its customers while also increasing its profitability. Among the major strategies has been Customer Relations Management programs (CRM). Retailers have continued to take advantage of such strategies as membership programs to enable them remain competitive in the market. With such changes, having a close relationship with our favorite retail has a lot of benefit, including increase in company’s share of wallet. Which define as the percentage of the customers’ purchase made from the retailer (Levy and Weitz ).Sometimes we, as customers, don’t mind pay more, or even travel back and forth to their stores, to meet our personal sales and of course get our specific items. This kind of relationship might require a long process, and personal experiences by the customers. However, this could easily happen if one retailer generates correct and effective strategies to build customer relationship. Assigning and applying strategies to generate customer relationship might also cost a lot of expenses. However, once this particular strategy succeeds, this will lead to increase in customer loyalty, and hence retailers will be able to maximize their profit eventually. To be honest, I had no idea what customer loyalty is before I came and join this class. However, now I fully understand how it works. In fact, I have unconsciously built a strong relationship with one of well-known specialty department stores, Neiman Marcus specifically in Bellevue, WA area. The story began when I intended to find a specific designer of shoes 2 years ago. I had no idea what Neiman Marcus... ... middle of paper ... ...tand that, customers will be motivated at their best, when get rewarded, because of their purchase. Finally, Barney’s New York, one of first tier specialty department stores, has implemented their CRM programs to the customers, locally and internationally. This is what differentiates Barney’s with other competitors such as Nordstrom and Neiman Marcus. The competitors haven’t be able to provide international customers their private-label credit card, because they don’t have SSN. While, with Barney’s international residents are more than welcome to come to store, bring their passport, and do the paperwork. Both Barneys and Victoria’s secret did a good job on explaining on how the way their rewards program works to the customers as explicit as possible. This is so important to prevent misunderstandings between what customers have expected with the retail perspective.
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