To keep old customers a company will spend less money than attract new customers. So a customer who has brand loyalty reduces marketing costs. Secondly, brand loyalty is easy to attract new customers. High brand loyalty means every user can become a live advertisement. This helps other consumers to build confidence for shopping.
This movement toward quality has produced significant benefits but just like other business fads, joining and adopting the religion does not insure that the real objective of producing customer satisfaction will be obtained. Customer satisfaction is a key ingredient to the success of any business.It is the most important factor that creates repeated customers. Some people know it but do not realize its importance. If a customer of yours is satisfied with one of your products or services, chances are this customer will purchase more of your products or services, which will increase your revenue. Therefore, in order to have your new or existing customers buy more from you, you will have to follow techniques that work.
In order to attract new customers the firms need extensive marketing strategies and tool, such as; cost of advertising, the cost of a promotional campaign, the cost of personnel selling to entertain new prospects, and cost of inefficient dealings during the customers’ learning process and so forth (Graham, 1995). In contrast, for loyal and older customers efficiency and effectiveness achieved due to less marketing issues. The loyal clients usually do not much care about the product or service promotion rather they focus on the caliber. Thus, through maintaining quality and satisfaction the firms can retain the loyal customers for long time and thus, the loyal customers ensure the sustainability of the
This tendency motivates the customers to shop more straightforwardly, spend more money, and helping consumers to have a positive review about the organization thus increasing the organization competitiveness Loyal customers can act as key ambassadors for a particular brand or organization in the sense that they are more likely to recommend or purchase a product themselves. They often associate themselves to the organization in believing in their products and the superiority of their products. It is usually seen that loyal consumers are often willingly buying any products that their preferred organisations release. This proves that loyal consumers provide a key security for organisations as they know that their loyal consumers will stand by
This vision may not seem like a long-term goal towards the company; However, increasing the number of loyal customers in any business will increase the revenue over time. Additionally, having loyal customers will boost the reputation of an organization and allow new faces to experience what loyal customers were susceptible to. While working at this organization I was aware of the mission and visi... ... middle of paper ... ...st paced, yet comfortable work environment that every employee will be honored to work at. In conclusion, this organization should focus more on their employees and less on profitability. This reasoning comes from the idea that efficient and appreciated employees will dictate the future of an organization through their quality of work and their outlook on the company they work for.
WH Smith has located each of these stores in an excellent location around the UK. While they gain customer loyalty by doing this they will also gain a steady income so they will be able to share some of its profits with its shareholders. However if they don’t make customer loyalty and gain a steady income, they will lose money and so will its shareholders. The shareholder of a WH Smith is always at risk of losing their money, which is why WH Smith offer a better return than that of a bank where the shareholder is at no risk of losing money. Another of WH Smith ’s aims is to look after their customers as customers are very important because they provide income to the business.
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.
According to Newman (2016) everyone within the organization must aim to achieve great customer service for it to be possible, therefore linking employee attitude and satisfaction to excellent service and profitable growth. Though employee attitude proves difficult to measure or control to certain extents, if neglected poor employee attitude and low morale could result in lower productivity and work quality. A positive work environment would result in happier employees, thus positive employee attitude which would reflect on how customers are treated. A positive work environment will also motivate employees to treat customers with the care and extra effort they believe the organization grants them. Proper training and adequate resources to carry
Therefore, businesses should consider every possibility that guarantees a loyal customer base and reap profitability in return. In addition to that, this profit may increase with time. This has been shown in multiple studies [REF]. The reasons behind the role of customer loyalty in increasing profitability are: • Retention: Customers who are loyal to a company stick with it and are very unlikely to defect to a competitor company. This remains true even if they encounter a bad experience once in a while.
In order to retain back these potential consumers or loyal consumers businesses go through these customer retention techniques. As a result if the customer retention is improved by at the least even a small scale, the outcome is indeed a huge increase in the profit. Maintaining a close contact with its own customers, enables an organisation to know the personal satisfaction of their regular customers as well as the ability to respond quickly to their needs and demands. For businesses to keep customers loyal towards them, businesses will have to build a good relation or interaction with their customers. No interaction with its customers means no growth in an organisation.