Apart from the aspect of getting customer satisfaction, customer loyalty is yet another field in which the businesses and companies must indulged themselves because loyalty is the risk and advantage simultaneously which could affect the company’s revenue and its credibility positively or negatively.
It is very closely related to the customer satisfaction and there is a very thin line in differentiating between customer satisfaction and customer loyalty. Customer loyalty is the result of a company providing its customers with high level of satisfaction from its product and service offerings. The service quality perspective puts forward that service quality evaluations substantially drive customer loyalty in services industries. A loyal customer of a retailer is a customer who sticks to the retailer and comes back again and again for repeat purchase. The lifetime value and contribution of the loyal customers is significantly high in the revenue potential of the retailers and similar business. An example of the customer loyalty being significant to retailers can be seen in the food retail industry where creating store loyalty has been one of the objectives of the marketing campaigns. Retailers have stared to focus on achieving customer loyalty through marketing programs and innovative customer rewarding strategies. Customer orientation and interpersonal relationships also functioned as moderators that strengthen the effect of service quality on customer loyalty. The various strategies that are used by retail businesses to increase customer loyalty include rewards, CRM and feedback programs. The concept of loyalty cards and the store debit/.credit cards is to increase the loyalty amongst the customers and to increase repeat purchase through the dissemination of benefits and rewards to the customers. The other strategy adopted by the retailers to increase customer loyalty is to establish CRM based operations, which allows retailers to collect data and information of the customers and their requirements or history.
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