Positioning and Differentiating the Market Offering Through Product Life Cycle
Today’s markets represent the surplus market, with a wide range of product available for sell. Consumer has huge product offering to choose from, for soap, there are more than dozen brands and each brand has at least 4 or 5 varieties. Companies have to work on strategies, which would differentiate their products from competitors. This […]
Qualities of a Good Response – What a response must provide ?
An organization should understand that response is the key towards creating quality relationship with customers and nurturing the future business depending upon the customer’s perception and senses determined from the response. Response creates a channel of interaction that can enhance business relationship which will be mutually beneficial. This is only possible when the responses from […]
Advertising Budget and Factors Affecting it
“Money does matter a lot.” Advertising Budget is the amount of money which can be or has to be spent on advertising of the product to promote it, reach the target consumers and make the sales chart go on the upper side and give reasonable profits to the company. Before finalizing the advertising budget of […]
Knowledge Management Strategy
Introduction Knowledge management is the recognition, optimization and effective handling of intellectual assets to build value, enhance productivity, and achieve and maintain competitive advantage. This comprises of the summarization, combination, dissemination and utilization of knowledge in an organization. Thus the management of knowledge comprises of various tasks and functions. The generation of a knowledge management […]
Pricing Challenges in Multi-Channel Retail
Online retailing has now become a part of our everyday lives. Companies like Amazon have swooped in from nowhere and have suddenly grown into one of the largest companies in the world today. The online companies took the world by storm. Their growth has been sudden and astronomical. Hence, many big businesses did not get […]
For maintaining customers’ loyalty it is very important by organizations to track their loyalty. Following are the two methods of tracking customer loyalty:
The graph is normally created when the supplier evaluates that customer is showing less interest in buying and the time gap between each buy is gradually increasing. When the graph goes from secured to lost stage, it is important for the organization to identify corrective measures to retain the customer back to track.
When the corrective measure works efficiently the graph again moves towards secured level in the coming future which indicates that the supplier is gaining customer loyalty again and there are fewer chances for the customer to divert to other options.
This is a simple but powerful technique to track customer loyalty in-house without employing external resources. However this is not an accurate method to track customer loyalty but it shows the trend if the correctives measure taken to retain customer is working efficiently or not.
Changes in the loyalty is normally seen after tracking loyalty on time scale but the details are not exactly focused and does not accurately provide the actually loyalty variation of the customer to supplier. This process is normally implemented in the initial stages after the supplier identifies that there are chances that customer can divert. If corrective measures are not taken at this stage then it becomes difficult for the supplier to retain the customer.
The quadrant variable could be associated with values like ‘premium’, ‘neglected’, ‘patrons’ and ‘pitfall’. If the customer value remains the same but the customer loyalty travels from neglected to premium quadrant then the customer loyalty is moving in the positive direction and there are chances that it may cause to increase customer value as well.
If the customer value increases but the customer loyalty travels from premium to patron’s level then it shows that the loyalty is declining and needs attention and corrective actions should be taken to improve customer loyalty.
If the customer value increases rapidly but customer loyalty travels from premium to pitfall level then it indicates that the loyalty is declining rapidly and serious attention should be taken. Under this condition the loyalty bond gets weakened and customer can divert at any time.
This is purposeful and powerful tracking method to track loyalty because end-results are focused and the seriousness of whole scenario is clearly visible. This helps the supplier to make strong and focused strategic plans to reclaim customer loyalty.
Normally this tracking process is implemented under adverse conditions to get satisfactory results. When the tracking on time scale graph does not work efficiently supplier implements volume-loyalty matrix to enhance customer loyalty in an efficient and efficacious manner.
Tracking customer loyalty is very important process that all the organization should implement continuously to track customer buying trend and force them be loyal to them and increase business values and profits.
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