This strategy essentially gives firms an advantage as the customers form the basis of the firm’s profitability. Matey, (2016) stated that a customer-driven marketing strategy focuses on meeting the needs of the customers and examines how the products or services can meet those needs. The six important components as mentioned throughout this essay which are: repeat buyers, higher prices, loyalty in crisis, word of mouth, one-stop shopping and new product innovation (appendix 1) all contribute to providing profits, corporate performance, and growth allowing a firm to obtain a competitive advantage over another. While all the factors highlighted in appendix 1 are needed the most important which marketers are highly concerned with is customer satisfaction; this firstly provides the foundation to all the supporting components. While targeting different sectors of the market through marketing research will create value it will also enhance the product and make it more marketable.
A direct relationship and based on the trust of suppliers is a strength in business growth. Starting from timely receipt of orders and payment methods, the connection with suppliers can make a difference in a competitive economy, influenced by globalization. Finally, the company must follow closely the connection with other categories of stakeholders (government, community and environment), so direct follow up between the company and related parties will lead to increasing profitability. The link between corporate performance, value for shareholders and stakeholders may be declared by Figure 2. We propose a model for tracing the company 's performance taking into account the various types of
CASE STUDY – II TESCO:- INTRODUCTION :- Tesco is a customer-oriented business. It aims to offer products that provide value of money for its customers and to deliver high-quality service. Tesco wants to attract new customers, but it also wants to keep its existing customers happy. Building customer loyalty is a cost-effective strategy to grow the business. This is because satisfied customers are good advert for the business.
To achieve that, Arrows sale force build relationship with its customers by offering them a chance to interact with them in order to be able to understand the benefits of doing business with Arrow rather than anyone else. In other words, since value added services help Arrow maintain profit, it is of crucial importance to develop and continue long term relationship with the right customers and help them in their times of need. This unbreakable connection establishes mutual communication and gets customers to invest in the supply chain which provides value-added services. As a result, these customers are committed and unlikely to terminate the relationship with the company.
Efficient customer service departments seek to solve problems as they occur, and, if possible, prevent them in the first place. For instance, when processing an order for products or services, good customer service departments will ask necessary questions to ensure the customer is ordering the correct item or service, and will verify the data before ending the call or contact to verify accuracy. This can reduce the drain on company resources and increase customer satisfaction by reducing the number of returns, complaints and problems that crop up because of poor handling. In addition, properly trained representatives can effectively cross-sell additional products or services while processing customer orders, thereby increasing sales. Treating customers with respect, greeting them with enthusiasm and going above and beyond to resolve any problems and issues can keep customers coming back.
This was a conclusion from their study to know the role of individual characteristics on customer loyalty. The results show that some individual factors have positive and significant relationships with the customer loyalty; these factors are masculinity level, agreeableness, self-esteem, emotional stability, internal locus of control and openness to experience. Durukan & Bozaci, (2011) inferred from the research results that giving importance to customer loyalty creating and maintaining activities in societies and cultures, which has high level of masculinity, agreeableness, self-esteem, emotional stability, internal locus of control and openness to experience, would be a more profitable and effective approach for businesses. Loyalty is not determined exclusively by the intrinsic characteristics of service offered; it can also depend on external traditional activities, such as advertising and public relations, well known to those in charge of marketing (Nguyen et al 2013). Nguyen et al (2013) added that “to build customer loyalty and sustain it, relationship marketing can play a key role to influence positively customers’ perceptions of the organization and to enhance customer trust.” Customer loyalty is of prime importance for business
This type of help can take the form of a vendor managed inventory (VMI). The TOC distribution link simply extends its buffer sizing and management techniques to its customers’ inventories. Doing so has the effect of smoothing the demand from the customer and reducing order sizes per SKU. VMI results in better availability and inventory turns for both supplier and customer. More than that, the benefits to the non-TOC customers are sufficient to meet the purpose of capitalizing on the decisive competitive edge by giving the customer a powerful reason to be more loyal and give more business to the upstream link.
Service Innovation Customer care through service innovation enhances the customer experience, addresses grievances and facilitates customer retention. Service innovation makes necessary changes to a product line to attract more customers as well as consumers. For innovation in service sometimes the existing products that are likely to be in demand of the customers or the introduction of new products to an existing line that allows the company to move into newer consumer niche markets are enhanced which gives an edge to the company over their competition and it also increases the efficiency of the company in their operational structure by changing the internal structure so that waste is eliminated, production is increased, and customer orders
It is a methodology used to learn about customer needs and behaviors in order to improve stronger relationships with them. The more suitable way to consider about CRM is as a process that will help bring together lots of sections of customer information, sales, marketing efficiency, responsiveness and market trends. CRM benefits businesses to use technology and human resources to gain awareness into the behavior of customers and the value of them. By definition, it is a management philosophy that allows a company’s goal to be achieved through identifying and satisfying customer’s stated or unstated needs and wants (Alavi, 2013). It is thus, identified that customer relationship management has the potential in increasing future expected revenues for the company as well as to those prospective customers (Wang et.
Attract more employees who want to work for the business, will attract many investors and keep the company share its price high that will help or protect the business from takeover. Moreover, when the business is applying ethical way, it will be success and well known between a million of organizations. Some people described that way as “a creative way”. Business ethics is the art and discipline of applying ethical principles to examine and solve complex problems which may occur. To develop trust that must be ethical so trust will be used as the indicator variable of ethics.