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Customer retention and satisfaction research proposal
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PortAventura has 3.7 million guests per annum that can bring them 3.4 million profits (Hervás, Rodon, & Planel, 2011). In order to provide personalized customer ' services, PortAventura currently facing a main issue about their one-to-one marketing approach (Hervás, Rodon, & Planel, 2011). Except that collecting information issue, they also have storing information issue. There are two suggestions for them to solve their issues both at collecting and storing data in the short-term, which are RFID cards or RFID bracelets and data warehouse respectively. Those suggestions can convenient for PortAventura to both collect and storage their customers ' personal data. In addition, combining the RFID cards or RFID bracelets with mobile app and combining …show more content…
There are some methods for them to measure whether PortAventura reach their short-term business objectives or not. Firstly, PortAventura can analysis their market growth that will indicate how many numbers of their new customers. Secondly, PortAventura can use the data capture that shows the percentage of complete data. Thirdly, PortAventura can analyze their revenue and profits that can show the percentage growth in sales. The more and more new customers, data capture and revenue and profits means that they are more likely to reach their short-term business …show more content…
The long-term business metrics can be measured by customer loyalty, value of customers and customer satisfaction. Firstly, PortAventura need to calculate the degree of their customer loyalty that means how many numbers of the repeating customers. Secondly, customer lifetime value (CLV) is a method to calculate the degree of customer satisfaction. Thirdly, PortAventura need to explain the feedback or reviews from their customers that will be used to calculate their customer satisfaction. The increasing level of repeating customers, CLV and customer satisfaction that indicates they are more likely to reach their long-term business
In order to review the historical health of the firm I will calculate different ratios and gross margins and would try to see the trend. I will use Gordon Growth Model to find out the sustainable growth rate for the firm using historical data and then would compare it with its actual growth rate.
Introduction. Customer loyalty is basically defined as a deep held commitment to re-buy or re-patronize a chosen product/service consistently in the future, thereby causing repetitive same-brand or same brand-set purchasing, despite situational influences and marketing efforts having the potential to cause switching behavior (Oliver, 1997). It is a main driver for customer retention, which, in its turn, represents a basic force that accumulates a customer base for the company. As the experience suggests, the presence of the customer base is a valuable asset, because a lot of statistical data and marketing researches have proved that it is harder and much more expensive to acquire a new customer rather than retain an existing one. In this aspect, any business without a focus on customer retention is left on market’s mercy: any market movements will affect the sales in a more intense manner. There is also a risk that your competitor may eventually satisfy the existing customer’s needs and take away a part of your market niche. Moreover, customer loyalty gives a sort of discretion to the company’s R&D policy and marketing strategy: you can try to introduce different features to your products, experiment with different types of ads, and no matter what the results would be, — the customers will stay stick to your production line. Of course, an organization does not have an absolute control over the loyalty of its customers, bec...
Customer Value is a very important factor to all businesses let along business that supply products or services to the public. Value is relative to each individual customer but many researchers have found a simple way of defining customer value. Customer value equal the result produced for the customer plus process quality divided by the price to the customer plus the costs of acquiring the product (McMurrian & Matulich, 2016). The customer must purchase the product or service and experience it for the company to be able to benefit from the feedback. The four mechanisms within customer value, the results, process quality, price and customer access cost, are all very important for a company to understand in order to fully understand customer value.
Soman,D & Marand, S (2009). Managing Customer Value: One Stage at a Time.: World Scientific Publishing. p9-14.
Net Promoter Score is becoming an increasingly popular tool used by many companies who try to assess customer loyalty. The Net Promoter Score is based from a model developed by Frederick Reichheld in the book, “The Ultimate Question” (Beyond 2). The system helps measure customer loyalty between an organization and a consumer. The Net Promoter score was designed on an 11-point scale from (0 to 10) and it separates the customers into promoters, passives and detractors (beyond 2). Promoters are people who score 9’s and 10’s on the Net Promoter Score scale. The passives are the people who are 7’s and 8’s on the Net Promoter Score scale. The detractors are the people that are from 0 to 6 on the promoter score scale. One of the main goals of the Net Promoter Score scale is to recognize what each of the companies customers are defined as and to try and convert the detractors and passives to Promoters. The promoters are people who feel their lives are being enriched by their relationship with the company. They are very loyal to the company and have multiple purchases with the company. They tell many different people about the company to try and influence others to shop or use the company. They offer good feedback on how to stay successful or even become more successful in the future. The passive customers are people who make few recommendations to others about the company. Bring little energy to the company and are likely to go to a competitor if they offer a great discount on a product. The detractors are customers who feel that their lives are not enriched by shopping or affiliating with that particular business (Freimark 21). The detractors become dissatisfied with the company or experiences they have had with the company. They ta...
The Customer loyalty has been a major and unanimously acknowledged as a valuable asset in competitive markets according to Srivastava, Shervani, & Fahey, 2000. As a result, it becomes more important to give power to in loyalty panel particularly when the consumers faces very low switching or moving cost to other product or service, because they are not locked in by a contract (Shapiro & Vivian, 2000). It is also become important in competitive markets due to availability of more lucrative and easily available options. The concept of customer loyalty has been around and present throughout in all parts/activities of numerous industries in the past decade (Lewis, 1997). The development of loyalty includes building and supporting a relationship with a customer, which leads to the repetitive purchase of products or services over a given period of time. A loyal customer base also permits companies to offer their expertise and skills to other business matters (Gefen, 2002; Rowley & Dawes, 2000). In order to understand what drives customer loyalty or how your business defines customer loyalty we can look at the behavioral aspect of it. Customers can show their loyalty in a number of ways. They can prefer to stay with a firm, whether this persistence is distinct as a relationship or not, or they can increase the number of purchases, or they can do both (Reinartz & Kumar, 2003; Rowley & Dawes, 2000). The purpose of this research is to link loyalty to the up-and-coming theories of CRM (Macintosh & Lockshin, 1997) or as the key element, of effective CRM. Although some authors, such as Dick & Basu (1994), have different view of each element of it and make a distinction between brand loyalty, store loyalty, sales people loyalty, product and ser...
...ustomers, there are difficulties too, with the first being development of a customer satisfaction measure that has validity. Surveys on customer satisfaction are not reliable indicators of purchase intent or the probability of a repeat business. They are either poorly conceived or conducted, do not measure the right activity or fail to assess satisfaction or relative value many a time (Reichheld, 1996). Another drawback is that, if undertakings aimed at measuring satisfaction of customers overwhelm other indicators of strategic performance such as the ones concerning success of a new product or learning in an organization, the management will likely shift its focus to only the short-term, in turn discouraging risk-taking in the development of products and processes, only leading to incremental improvements as per (the) current products along with service activities.
Purchase behavioural helps companies to develop an effective strategy for their products. Figure 4 categorises the purchase behavioural with profitability. Furthermore, attitudinal loyalty is a significant factor for the future profits of companies. They want to know exactly which customers have high relative attitude and other crucial facts. The customers’ attitude analysis is presented on figure 5. Companies are using CLV (customer lifetime value) as it is a method, which can combine all elements and data of customers’ loyalty, behaviour, attitude and help them to increase their profitability (Kumar and Shah, 2004). Gregg is a model o business which loyal and returning customers is vital part of its stability and future development. However, Greggs is a hospitality brand, which has specific characteristics as far as sales and customers’ range are concerned. It has more than 1600 brunches on high street and urban areas. The majority of the brunches are aiming to serve local and tourist customers. Thus, they want returning customers for the local scale operations and for the tourist they are interested more for big and success brand advertisement for
The more profitable firms are those that are able to maintain their most valued customers throughout time. To satisfy a customer means to make him faithful and customer satisfaction becomes the index that measures the ability of the firm to produce income for the future.
Strive to earn customers’ long-term loyalty by working to deliver more than promised, being honest and fair to provide exceptional personalized service that creates a pleasing business experience.
As pointed out by Singh (2006), customer satisfaction is important because, “satisfaction influences repurchase intentions whereas dissatisfaction has been seen as a primary reason for customer defection or discontinuation of purchase”.
As the author of the article concedes, the online shopping has flourished in the past years. Many customer have seen the advantages of e-commerce in the ways of time and money saving. Whit a simple click on the keyboard the goods are uploaded in a virtual cart and from there are delivered to the customer address. Also, the online stores have the opportunity to create a customer database and a customer profile. The customers receive periodic reminders of the new offers and sales via email or mobile phone messages. In the meantime, many classic stores have struggled to maintain the business keep up. According to the article, the brick and mortar stores will implement new features that conduct customers to an easy and pleasant shopping. For instance, the retailers will use the customer mobile phone as a concierge application. The customer will be informed about latest products and their availability. Furthermore, the customer will have the possibility to track needed items inside the store with the help of store mapping and products locations. If the customer will change the shopping list, the app will provide the route to the new item. Also, when a customer will passing a store the app will remind the last customer visit into the store and
Ryals, L. (2005). Making Customer Relationship Management Work: The Measurement and Profitable Management of Customer Relationships. Journal of Marketing, 69(4), 252-261. doi:10.1509/jmkg.2005.69.4.252
we would be tempted to believe that is a simple, linear relation between satisfaction and loyalty. According the research of (Jones & Sasser Jr., 1995) , relation satisfaction and loyalty is different according to time and circumstances. Unless they are totally satisfied, there is always a chance you will see your customers be lured away (Jones & Sasser Jr., 1995).
Lawfer, M., R. (2004). Why customer come back: how to create lasting customer loyalty. United State of America: Career Press.