Customer retention dissertations

Research topics on customer retention

Humpy et al. Summary This chapter provided us with a basic guideline of the things to come. We calibrate our models using data collected from the customers of a leading supplier of high technology products and services. Tesco made customer loyalty marketing work, when every other British supermarket loyalty programme in the late s failed, faltered or never got started. Objective 4 Evaluate the extent to which loyalty marketing makes its contribution to TESCOs success and identify key areas where TESCO outwits its competitors The study seeks to point out the parameters TESCO considers to quantify the effect of its loyalty program and assess if those parameters are justified. Loyalty is seen as something that consumers and customers exhibit towards brands, products, services, stores, as well as salespersons Laurent, The Research Approach is a combination of deductive and inductive approach. Safeways loyalty scheme ABC card started off well but was finally withdrawn four and a half years after its launch. Not on the basis of what they think the broad mass of customers want but in knowledge of what individual customers actively choose and what they prefer. Tescos loyalty scheme suggests that a loyalty scheme can only have a sustained impact on the bottom line when, from its inception, it changes the dynamic culture of the organization. Handling data is like drinking water from a fire-hose Humpy et al, It designed Clubcard not just to show customer loyalty to Tesco, but more important, to recognize Tescos loyalty to customers.

Is loyalty an armoury which came, conquered and died? Trying to analyze all the data is madness Waitrose, cited in Web 2Dropping the loyalty card is inconceivable Russell Craig, Tesco,cited in Web 3. Today, Tesco Clubcard has established itself as one of the most successful loyalty schemes over the past nine years, Page 8 of and a key driver of this is that the scheme in integral to Tescos stated core purpose, To create value for customers.

This tricky tale of retail was what made the author go in for a research on loyalty as no existing literature gave a clear-cut judgment on the subject of customer loyalty in retail.

building crm by customer retention

In the third essay, we examine whether developing long-term relationships with select customers is a profitable strategy for business service firms.

Handling data is like drinking water from a fire-hose Humpy et al, Future research should seek to replicate the study onto other retailers in order to be able to get a broader understanding of the loyalty effects of customer-loyalty-programmes. The construct of customer loyalty also differs from the one of customer retention in that customer retention has a purely behavioural character, whereas todays interpretations of the loyalty construct usually include both behavioural and attitudinal dimensions; moreover, while the construct of customer retention considers the Page 20 of marketer as the active party, loyalty focuses more on intrapersonal aspects of customer behaviour Hansen, This research seeks to examine TESCOs skill and the will which makes its loyalty program stand out and the extent to which it contributes to the retailers success.

thesis on the effect of customer relationship management on customer retention

AntiLoyalty lobbyists argue that loyalty programmes are little more than a discount scheme ; that do nothing to engender consumer allegiance. As a major food retailer, in a competitive market sector, there is always a need for brand loyalty.

Customer retention questionnaire pdf

Tescos loyalty scheme suggests that a loyalty scheme can only have a sustained impact on the bottom line when, from its inception, it changes the dynamic culture of the organization. The highest attachment occurs when a buyer feels a strong buying preference coupled with a high degree of perceived product differentiation. Today, Tesco Clubcard has established itself as one of the most successful loyalty schemes over the past nine years, Page 8 of and a key driver of this is that the scheme in integral to Tescos stated core purpose, To create value for customers. Not on the basis of what they think the broad mass of customers want but in knowledge of what individual customers actively choose and what they prefer. The UK's top two supermarkets, Tesco and Sainsbury's, both say that loyalty schemes are an integral part of their retailing strategy and insist they remain committed to them. Loyalty is seen as something that consumers and customers exhibit towards brands, products, services, stores, as well as salespersons Laurent, We empirically test these hypotheses using data from a set of computer-based experiments. AntiLoyalty lobbyists argue that loyalty programmes are little more than a discount scheme ; that do nothing to engender consumer allegiance. Page 10 of 1. When the board recognize that loyalty scheme data is the bedrock of their business, then the considerable investment in technology, manpower and other resources really starts to pay dividends. Objective 4 Evaluate the extent to which loyalty marketing makes its contribution to TESCOs success and identify key areas where TESCO outwits its competitors The study seeks to point out the parameters TESCO considers to quantify the effect of its loyalty program and assess if those parameters are justified. Tesco made customer loyalty marketing work, when every other British supermarket loyalty programme in the late s failed, faltered or never got started. Customer loyalty schemes were not a new idea when Tesco launched it but Tesco developed a contemporary version of the original concept which went much further in developing an active relationship with customers. Our findings reveal that customers' overall satisfaction depends on the supplier's performance on four key performance criteria.

Our results reveal that, whereas long-term relationships do not result in cost savings for business service firms, they do help improve returns on investment by enabling relational service firms to resist price pressures and retain their gross margins.

While every business talks about being customer centered, Tesco has made that commitment tangible.

the effect of customer relationship management on customer retention thesis pdf

Unfortunately there is no universally agreed definition of loyalty Jacoby and Chestnut ; Dick and Basu ; Oliver By understanding its customers more and using this insight to deliver back what the customer wants, Tesco is succeeding in its purpose- to deliver value to the customer and earn their lifetime loyalty.

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"Customer satisfaction, customer retention, and customer partnerships" by Piyush Kumar