Asda. Relationship Marketing and Loyalty
2.1 INTRODUCTION
This section of the paper sort to discuss some of the current research findings in topic.
According Baker M (2000), loyalty schemes is the “Overt attempt of exchanging partnership to build a long term relationship association, characterised by purposeful co-operation and mutual dependence on the development of social, as well as structural bonds with consumer”.
Many marketers agree that by reducing customer’s to competitors defection by only 5 per cent, companies can improve profits by anywhere from 25 per cent to 95 per cent. There is no question this will be a great advantage and could benefit any retailer. It is for this very reason why consumer’s relationship marketing and using tools such as loyalty scheme is important to retain consumers.
The goal should be to deliver long-term value to consumers and to measure success in long-term customer satisfaction (Berelson J.G and Steiner R.A, 1964 ). This requires that the company’s departments work together as a team to serve the consumers.
However, before going into consumer’s relationship using loyalty cards it is vital to understand that every consumer is unique. Although Tesco might want to develop a consumers relationship they should understand that not all consumers are wealth while to be in a relationship with.
“When it comes to relationship marketing… you don’t want a relationship with every consumer… in fact, there are some bad customers (the objective is to) figure out which consumer are worth cultivating because you can meet their needs more effectively then anyone else” (Chisnall, P.M 1995).
Other researcher such Brian T and Peter G P (1996) argue that there is no question about the importance of returning consumers. It is the way in which retailer collect the information that is unethical. They point out that consumers give out their private information without knowing that they are doing so. Day R L (1984) also point out that the argument that retailers are using
This section of the paper sort to discuss some of the current research findings in topic.
According Baker M (2000), loyalty schemes is the “Overt attempt of exchanging partnership to build a long term relationship association, characterised by purposeful co-operation and mutual dependence on the development of social, as well as structural bonds with consumer”.
Many marketers agree that by reducing customer’s to competitors defection by only 5 per cent, companies can improve profits by anywhere from 25 per cent to 95 per cent. There is no question this will be a great advantage and could benefit any retailer. It is for this very reason why consumer’s relationship marketing and using tools such as loyalty scheme is important to retain consumers.
The goal should be to deliver long-term value to consumers and to measure success in long-term customer satisfaction (Berelson J.G and Steiner R.A, 1964 ). This requires that the company’s departments work together as a team to serve the consumers.
However, before going into consumer’s relationship using loyalty cards it is vital to understand that every consumer is unique. Although Tesco might want to develop a consumers relationship they should understand that not all consumers are wealth while to be in a relationship with.
“When it comes to relationship marketing… you don’t want a relationship with every consumer… in fact, there are some bad customers (the objective is to) figure out which consumer are worth cultivating because you can meet their needs more effectively then anyone else” (Chisnall, P.M 1995).
Other researcher such Brian T and Peter G P (1996) argue that there is no question about the importance of returning consumers. It is the way in which retailer collect the information that is unethical. They point out that consumers give out their private information without knowing that they are doing so. Day R L (1984) also point out that the argument that retailers are using