crm management

Literature review Customer loyalty has played an important role as having positive influence on profitability of a business. With regard to Bandyopadhyay & Martell (2007), there are two main aspects in loyalty research which are behavioural loyalty and attitudinal loyalty. The former refers to the repetition of buying behaviour. On the other hands, the latter focuses on emotional engagement and psychological commitment towards the brand that can bring about the intention to purchase repeatedly (Jarvis & Wilcox, 1976) and proceeding relationship with the same suppliers (Biong, 1993). In business to business, B2B,environment, customer with attitudinal loyalty are not likely to inevitably repurchase from the particular company. In other words, B2B market is likely to give predominance to economic values (Eggert & Ulaga, 2002). Rauyruen et al. (2007) suggest that to retain behavioral loyalty with SMEs clients, supplier might concentrate on improving customer satisfaction and providing excellent service systems in order to enhance trust and affective commitment with customers, which are essential factors in retaining purchase intentions.
To initiate a successful loyalty scheme, O’Brien & Jones (1995) notes that it is crucial to target potential customers; their contributions are significantly valuable to a company’s profitability, which is worth for a company to build the relationship with. The RFM analytic model is mostly implemented to classify customer segmentation. It consists of three determinants, recency, frequency and monetary value of the purchases. Recency is the interval period between the last purchase and present time, the shorter time is more preferable. Frequency is related to the number of transactions in specific time. While, monetary value is the amount of money spending to a business (Cheng & Cheng, 2009).
According to Daukševičiūtė et al. (2011), they note that there two main types of loyalty programs, accumulative and non – accumulative