Name: Sarvottam Singh

PRN: 18020241170
Module 6: loyalty drivers

Customer loyalty drivers

Customer loyalty has been the Holy Grail of organisations and the loyal profitable customer
has been wooed and taken care of for years. However, the entire paradigm of loyalty and the
switching behaviour has been changing across industries. This is enabled by greater access
and lesser information asymmetry because of digital.

1) Attitude - A customer to bear on his loyalty can have following types of attitude

 Emotional and Sentimental - some customers stick to a particular supplier due to the
emotional and sentimental attachments with that supplier. This attachment may be due to
the physical location of the supplier, product pattern provided by the supplier that exactly
suits customer or may be due to the esteemed assistance and services provided by him. This
type of bonding enhances customer loyalty and it is very difficult to break this bonding under
any circumstance.

 Rational Type - such type of customer makes purchase decision rationally. Before making
any purchase they evaluate the suppliers and assess the profitability criteria.

 Entrepreneur type - there types of customers have a habit to try new options. Their decision
to choose supplier is normally irrational and can change their loyalty.
2) Reward your customers – one of the best way to keep customers coming back is
to reward them for their loyalty. Set up a loyalty program that gives customers
discounts, gifts and exclusive offers. After research it show majority of men and
women likely to fly at a business that offer loyalty program.

3) Product and services: Following are the important aspects of product and services
that could substantially help in retaining loyalty of customers.

 Differentiated Products and Services- Differentiation in products and services

help the organization to reduce competition in market and have substantial
influence on customers’ mind-set.

 Multiple Products for the same customer- By manufacturing multiple products

for the same customer enhances the relationship with customer which
increases loyalty. If the customer is loyal towards any one brand, then there
are good chances to retain his loyalty for whole range of brands.

 High Service Component- The products having a high service component

captures more customer loyalty. This is because the customer does not want to
experiment with other products provided by different supplier. Hence they
become loyal to the existing customer due to the provision of high service
components.

4) Ask for advice and listen to it: Sometimes it show that customer reply to
feedback just like a teenager. They just don’t want to listen to valuable advice-
especially if it’s something you don’t want to hear. Airline business should make an
effort to collect feedback from customers and listen to it.it is great way to show
customers that you’re not only reading their feedback, but also acting on it.
5) Human Resources: Organizational human resource plays a vital role in marketing
segments where customer comes in direct contact. In some consumer sectors like
household and automobiles, the customer gets a chance to evaluate capability of
organizational human assets. If the customer evaluates these human assets as useful
and is influenced by the aspects, then he develops a positive feeling against the
supplier who possess these enhanced human assets.

6) Customer expectation: Expectations of customers can go way beyond

expectations of supplier which results in breaking loyalty. If supplier is not able to
meet customers’ expectations, then obviously customers would look for better
alternatives. These expectations can be related to cost, quality, product service,
efficiency, durability or any other aspect. Many a times these expectations could be
unrealistic or unreasonable due to the market scenario or some external business
pressure. Under this kind of situation, it is becomes very difficult for an organizations
to meet all the expectations which result in sudden divert by breaking loyalty bond.
Any supplier which comes close to these unrealistic and unreasonable expectations of
customers could retain him easily.

7) Offer conveniences: Make life easy for your customers, and they’ll keep coming
back. Think about how we can make the customer experience simpler or faster.
Consider streamlining your checkout process so customers can get in and out, answer
questions on social media rather than forcing customer to go through an automated
maze of menus over the phone and offer auto-billing.

For exam, spice jet also found that 76% of travellers decide on their travel destination
and the services they use based on their friends’ recommendations. That’s why
Rewards gives loyalty points to current customers who refer new ones.

8) Reward customers differently based on them spend – Spice jet realized

something essential 75% of travellers are ready to pay for extra services. They also
saw that most of their customer’s book tickets for economy class. How could they
encourage this customer group to spend more? Simply, they offered customers ways
to earn points by purchasing extras, like traveling with pets or purchasing seats with
more legroom.

9) Range of services: wide range of packages, wide range of insurance plans and
good range of treasury services
 10) Supplier’s Culture: Supplier’s culture is most important driver of customer loyalty.
In consumer sector this culture means quality and in core sector it can be related to
technology. For example, in US ‘Friedrich’ has ranked with good quality, enhanced
design and user friendly features which have created brand loyalty. In Indian the
supplier of almost all the dairy product called ‘Amul’ has pursued customer loyalty
because of their overall culture. In core sector the image of the supplier is the biggest
driver of loyalty. This image could add a status symbol for most of the customers.
‘Mercedes’ automobiles and ‘RayBan’ sun-glasses are example of this. The customers
uses these products only for maintaining or enhancing their lifestyle and always be
loyal to them.

Use The Two Pie Model

Sometimes improving customer loyalty is simpler than adjusting pricing or introducing an

easy to use support channel. Rather than focusing on making changes to increase loyalty
directly, it can pay off to reduce the number of reasons that customers might have for being
disloyal in the first place.
 KEYS LEARNING.

1) Customer loyalty is essential for a stable business. IT has really helped me understand
it further.

2) that loyal customers are the best way to keep your revenue flowing. It also shows to
keep customer in hand.

3) social media maximization through customer loyalty targeting. Air lines Industries
work hard to offer increased engagement through incentives.

4) What airline industries do to keep retention and conversion rates.

5) Learn a lot very informative very refreshing and a much needed me.