QUESTION 3

 Illustrate and explain the significance of the ‘leaky bucket’ model of consumer
retention for marketing managers. Briefly discuss any 4 (FOUR) challenges to
customer loyalty faced by marketing firms.

Relationship marketing can help to:

1. Increase the overall quality of services provided

2. Increase trust of customers

3. Increase customer satisfaction with the services provided

4. Increased customer commitment to organisations

5. Increase customer loyalty

Requirements of Relationship Marketing

a) Trust

b) Commitment
c) Communication

d) Promise Fulfillment

Managers are recognising the importance of cultivating loyal customers to increase sales and
customer share (Zeithaml 2000; Zeithaml et al. 1996).

Challenges to customer loyalty in the current competitive environment:

1. Accessing Data Across Platforms

2. Mapping the Customer Journey
3. Identifying New Potential Customers
4. Maintaining a Consistent Customer Experience
5. Tracking Performance Metrics Accurately