Online profiles of customers Essay
Although the responses of the respondents varied from each other, the respondents all recognized the importance of customer relationship management in increasing the loyalty of one person to a supermarket. Nonetheless, it is not the only factor which affects this preference for other factors such as media influence, peer pressure, accessibility, availability of favourite products or brands and the cheaper prices of goods also play very important roles. There are many forms of schemes that had been developed as an essential part of customer relationship program.
These schemes include frequent shoppers programs such as the introduction of rebate cards, savings cards, punch cards and online profiles of customers. However, a large number of respondents believe that although this might help in the businesses of those who are a part of the retail industry, there are some features of these programs which are a bit disadvantageous to the part of the customers. According to their belief, these programs have the tendency to violate their privacy due to its collection of personal data and information in order to track the purchasing histories of the consumers.In the same manner, some respondents believe that these loyalty schemes are only effective in wooing or attracting the customers to at least try a certain supermarket and the products being sold within each. They believe that customers still prefer shopping at a certain retailer because of its accessibility and cheaper prices and do not solely rely on the presence of loyalty schemes. Nonetheless, it still plays a very important role in actually encouraging customers to come back for more transactions.
Also, the customers believe that these programs are also not effective with regard to establishing good relationships between the different businesses and their customers for these loyalty schemes have the tendency to lose its popularity and charisma as time passes by. This concurs with the research conducted by Scribner (2001), in which he states: In addition to developing a strategically defensible advantage, CRM also increases profitability. Customer loyalty translates into switching costs and reduced price-elasticity.In other words, customers are willing to pay a premium for personalized service and their loyalty protects the company from price competition. By tracking customers, the company also learns the value of each individual customer and can market its services toward the more profitable customers.
More predictable buying patterns actually lowers inventory holding costs, spoilage, and distribution costs. Customer loyalty reduces advertising and marketing costs because it costs less to keep a good customer than to acquire a new one.And customer loyalty extends product life cycles because customers are getting exactly what they want. Without a doubt, customer relationship management becomes very important in ensuring that one customer remains loyal to a certain business belonging to the retail industry.
However, one must remember that there are other factors that influence such loyalty and not just the existence of customer relationship programs alone. Throughout the whole discussion, it has been very well established that satisfied consumers are the reason beyond successful businesses.Companies that have satisfied a lot of customers experience high economic returns, compared to those that have not satisfied most of their customers. In the same way, customer satisfaction could bring ensure the continuous patronage of the customers. This would then once again ensure more profit for a particular company (Gilbert & Veloutsou, 2006). Customer satisfaction is defined as the provision of goods or services which fulfill the customer’s expectations in terms of quality and service, in relation to price customers paid.
Their expectations are then derived from the services that have been provided to them. Through this, they set standards that they would often look back to measure the quality of other products and services. Relationships within and outside the company is very important for the success of any business. A healthy relationship is important not only within the company, but most importantly to its customers because it dictates the performance and profits of the company, especially to a supplier. Traditionally, retailers knew all their customers personally.
They know what their preferences are and more often than not, are aware of what was happening in their lives, Because of the existence of this kind of relationship, the retailers could react quickly and formulate marketing strategies based on the needs of individual customers. In the same manner, they were also able to develop good relationships with their customers through the establishment of friendships and interactions. As a result, the retail industry revolves around the customer more than any other industry. Due to this, it is not enough to simply interact with the customers.
Rather, they are expected to know them better