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Loyalty marketing
from:In loyalty marketing, the business model the approach of doing marketing is based on strategic management. In this a company focuses on growing and retaining existing customers by giving them attractive incentives. The common propositions used are those of branding, product marketing and loyalty marketing. The decision whether to purchase a brand or not is based on the integrated combination of the value he receives through these marketing disciplines.
The customer loyalty marketing has been around for a lot of time, but the recent approaches and its expansion to encompass complex marketing methodologies have made it omnipresent in consumer marketing organizations.
The loyalty programs have had far reaching impact on the minds of consumers and have greatly altered ways in which consumers relate with companies where they purchase services or products. In addition to this they have also changed the consumers spending on product and services. The consumers have now become used to the convenience of the loyalty programs and many consumers worldwide have become accustomed to incentives and rewards received by being "card carrying" members of an airline, car rental or hotel program.
In the most recent years, the race to attract high end consumers has now taken the rewards and points incentive to the next level. In fact these additional perks may have become more useful to the consumers than the product itself.
In the loyalty business model the employees are trained to achieve specific paradigms. The paradigm being that the quality of service or product leads to definite customer satisfaction that then leads to your customer loyalty and then further leads to the profitability of your business. Loyalty marketing extends this effort from the end of employees that relies on word-of-mouth advertising drawing upon positive experiences of those utilizing the loyalty business models inspired the ventures attracting new customers.
The basic premise used here is that the customer satisfaction is actually based on the most recent interaction or experience of the service or product. The assessment of a consumer actually depends on the prior expectations or demand of the overall quality in comparison to an actual performance. If the most recent customer experience with the product exceeds previous expectations, then customer satisfaction will likely be high. In some cases customer satisfaction may also be highly rated even with average or below average performance quality. This is the case if the customer expectations are on the lower side. Similarly the chances are that, a customer may be dissatisfied even when the quality of the service overall is good. This typically happens when quality service is priced too high or the transaction adds a very little value.
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