Customer loyalty
- 1. PRESENTATION ON RETAIL STORE MANAGEMENT BY MUSKAN KAUR -121320090017 SEMESTER II BATCH 2020-2021 SUBMITTED TO MS. SHALINI WILLIAM BACHELOR OF VOCATION (RETAIL MANAGEMENT&IT) ST. FRANCIS COLLEGE FOR WOMEN BEGUMPET, HYDERABAD-5000016
- 2. 2 TOPIC Customer service program - loyalty program
- 3. Introduction Taking care of a customer’s needs and solving their problems is called customer service. Customer service begins the moment you connect with the customer to fulfill his needs and continues even after the requirements are met. The services might be required before, during and after the customer purchases a product or service. 3 “Your most unhappy customers are your greatest source of learning.” Customer Loyalty is the measure of success of the supplier in retaining a long term relationship with the customer. Customer loyalty tends the customer to voluntarily choose a particular product against another for his need. The loyalty may be product specific or it may be company specific.
- 4. What is customer loyalty? The term customer loyalty is used to describe the behavior of repeat customers, as well as those that offer good ratings, reviews, or testimonials. Some customers do a particular company a great service by offering favorable word of mouth publicity regarding a product, telling friends and family, thus adding them to the number of loyal customers. However, customer loyalty includes much more. It is a process, a program, or a group of programs geared toward keeping a client happy so he or she will provide more business. “loyalty is developed over a period of time from a consistent record of meeting, and sometimes even exceeding customer expectations”
- 5. Customer retention programmes give encouragement to customers to remain active and ensuring that they choose their brand as the exclusive brand. It is a strategy that creates rewards to profit customers and the firms. With loyalty customers, companies can maximize their profit because loyal customers are willing to purchase more frequently, spend money on trying new products or services, recommend products and services to others, and give companies sincere suggestions. 5 There are six points that measure customer loyalty: 1. Share information 2. Say positive things
- 6. 10 Main Tips to Build Customer Loyalty 6 1. Communicate – Whether it is an email newsletter, monthly flyers, a reminder card for a tune up, or a holiday greeting card, reach out to your steady customers. 2. Customer Service – Go the extra distance and meet customer needs. Train the staff to do the same. Customers remember being treated well. 3. Employee Loyalty – Loyalty works from top to the bottom. If you are loyal to your employees, they will feel positive about their jobs and pass that loyalty along to your customers. 4. Employee Training – Train employees in the manner that you want them to interact with customers. Empower employees to make decisions that benefit the customer. 5. Customer Incentives – Give customers a reason to return to your business. For instance, because children outgrow shoes quickly, the owner of a children’s shoe store might offer a card that makes the tenth pair of shoes half price. Likewise, a dentist may give a free cleaning to anyone who has seen him regularly for five years.
- 7. 10 Main Tips to Build Customer Loyalty 7 6. Product Awareness – Know what your steady patrons purchase and keep these items in stock. Add other products and/or services that accompany or compli- ment the products that your regular customers buy regularly. And make sure that your staff understands everything they can about your products. 7. Reliability – If you say a purchase will arrive on Wednesday, deliver it on Wednesday. Be reliable. If something goes wrong, let customers know immediately and compensate them for their inconvenience. 8. Be Flexible – Try to solve customer problems or complaints to the best of your ability. Excuses – such as “That’s our policy” – will lose more customers than setting the store on fire. 9. People over Technology – The harder it is for a customer to speak to a human being when he or she has a problem, the less likely it is that you will see that customer again. 10. Know Their Names – Get to know the names of regular customers or at least recognize their faces.
- 8. Significance of customer loyalty 1. Purchase products and services again and again over time. 2. Increase the volume of their purchases and buy beyond traditional purchases, across product-lines. 3. The company’s sales are increased through word of mouth. 8 Customer loyalty is very essential for the growth of an organization because loyal customers: 5. Become immune to the pull of the competition 4. If something goes wrong, the customer gives the benefit of doubt to the company.
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- 10. 10 Customer Loyalty Programs – Value of Reward Programs 1. Rate of Earning: Should reward earnings be equal, or accelerated? Should customers earn the same points for each dollar spent or more points per dollar as they near the program goal? 2. Aspirational Value: Two rewards can have the same cash value, but different psychological value — groceries versus vacation travel. Consumers engage in mental accounting by placing funds/resources in different mental accounts. 3. Cash or Cash Value: Rewards should offer real economic value. Some programs pay cash; airline frequent-flier programs provide free travel. Relatedly, should products/services be limited to firm offerings? 4. Deterministic or Probabilistic Rewards: Deterministic- Customers accumulate points, then collect rewards. Probabilistic- Customers win large rewards, or nothing.
- 11. 11 Customer Loyalty Programs – Value of Reward Programs 5. Ease of Collecting: Should be straightforward to redeem rewards. Retail stores face criticism for not having much options in redeeming offers. 7. Hard versus Soft Rewards: Hard Rewards- Denominated in dollars and cents, points. Soft Rewards- Toll-free information numbers, premium restaurant seating, hotel/airline upgrades. 6. Time to Earn: Many consumers engage in hyperbolic discounting — the tendency to increasingly choose a smaller-sooner reward, versus a larger- later reward. Hence- Should the program have smaller rewards earned frequently, or larger, delayed rewards?
- 13. 13 Thank You!