MANAGING RELATIONSHIP

AND BUILDING LOYALTY

Submitted By: Pooja
Roll no : 181325
 WHAT IS CUSTOMER LOYALTY

Customer loyalty is positively related to customer

satisfaction as happy customers consistently favor the
brands that meet their needs. Loyal customers are
purchasing a firm’s products or services exclusively,
and they are not willing to switch their preferences
over a competitive firm.
 STAGES OF CUSTOMER LOYALTY
◦Awareness – customer is aware of company and what it offers
◦Research – customer is considering purchasing, and has
visited website, downloaded resources, etc.
◦Buy – customer has bought product or service
◦Use – customer uses the service that they purchased
◦Repeat – customer purchases from company again
◦Refer – customer refers friends or family members to company
 WHY IS CUSTOMER LOYALITY IS
IMPORTANT TO A FIRM’S PROFITABILITY
◦Customers become more profitable the longer they remain
with a firm
◦Customers / families purchase in greater quantities as they
grow
◦Reduce operating cost
◦Referrals to other customers
◦Price Premiums
ASSESSING THE
VALUE OF A
LOYAL
CUSTOMER
THE WHEEL LOYALTY
 BUILDING A FOUNDATION FOR
LOYALTY
◦Targeting the right customers
◦Searching for value , not just for volume
◦Managing the customer base through effective tiering of
service
◦Customer Satisfaction and service Quality are prerequisites
for loyalty
 STRATEGIES FOR DEVELOPING
LOYALTY BONDS WITH CUSTOMER
◦Deeping the Relationship
◦Encouraging Loyalty
◦Financial Reward
◦Non financial reward
◦Building Higher – level Bound
◦Social Bond
◦Customization
◦Structural Bonds
 STRATEGIES FOR REDUCING
CUSTOMER DEFECTION
◦Analyze Customer Defections and Monitor Declining Account
◦Address Key Churn Drivers
◦Implmenting Effective Complaint handling and service
recovery procedure
◦Incressing Switching cost