BPMM3063 Industrial Marketing GROUP 3: Customer Loyalty

ARTICLE REVIEW 1. “The Royalty of Loyalty: CRM, quality and retention” 2. “ Loyalty Research In B2B Contexts”

MAIN ISSUES  For the first article, “The Royalty of Loyalty: CRM, quality and retention” the main issue is to understanding the relationship between quality, customer relationship management and customer loyalty.  Improving the intangible attributes of quality is not necessarily achieved by higher resource spending. It is likely that the quality may still be perceived as poor because intangible aspects of the service package (of product and services) are not being addressed.

Loyalty Research In B2B Contexts  For second article, the title is Loyalty Research In B2B Contexts. The issues is argues for a particular conceptualization of loyalty and explains why it is so fitting for business-to-business contexts.  Loyalty, it has received lots of press in recent years. Definition and prescriptions for measurement vary substantially depending on which expert one asks.

THE MAIN SUGGESTIONS For the first article, “The Royalty of Loyalty: CRM, quality and retention” Create customer relationships that deliver value beyond the provided by the core product. Measuring customer retention rates over time. Analyzing the root causes of defections Focusing attention on the most profitable customers Focusing attention on internal marketing and particularly front-line employees Evidence suggests that higher quality improves margins. CRM and CL can be measured using different indicators

For the second article “ Loyalty Research In B2B Contexts” Best customers is who sustain the supplier’s prosperity. Proper management of those unique characteristics, and excellent supporting B2B business fundamentals. Relational strength and chemistry essential to good working relationships must exist. Companies interested in researching and managing the true loyalty of their B2B customers. The quality of customer experiences, and customer perceptions about the company relative to competition. All work together to create an underlying psychological state in the B2B relationship.

MAIN DIFFERENCES BETWEEN B2C AND B2B REGARDING CUSTOMER LOYALTY The relationship  B2B is described as the form of relationship with the company on the side of supplier and another business company on the customer side. This business company could be represented by sole trader, company, or institution. B2B is how well you get on with your sales representative and how well he/she understands your business and how you operate.Business-to-consumer (B2C) relationships could be described as a relationship with businesses on the side of supplier and consumers on the other side.

The buying process  In the B2B, the buying process and the buying cycle is usually long and involves multiple approvals. For B2B buyers, purchases may be for their own organizational use, forreselling, or for reprocessing and then reselling. This usually creates a more complex set of decision considerations than in a basic B2C purchase. In B2C, it's a much faster decision making process. B2C can even be impulse-led and most often involves only one person. The brand  The brand plays a very different role in each sector. For B2C, a strong brand can encourage the consumer to buy, remain loyal and potentially pay a higher price. In B2B, it usually helps to be considered, but not necessarily to be chosen.

The marketing toolkit  In B2B, a lot of attention is spent on awareness building and educational understanding of the products/services on offer. In B2C, its focus is on getting the product sampled and in the right place at the right time, so budgets are more likely spent on merchandising and point of purchase activity. An emotional vs rational purchasing decision  B2B purchasing is usually far more rational than B2C, which is generally more emotional. B2B is more considered around saving money, increasing profitability and productivity. B2C has been said to be up to 70% driven by emotional behaviours, where desire, style and prestige are far more considered.

The target audience  The B2B market has a much smaller target market, where B2C works to attract a larger target audience. Effective measurement of a programme  In B2B loyalty programmes, it is generally harder to switch supplier; costs are usually much higher and far more complex than in the B2C world. Therefore in the world of B2B, we look to change behaviours for the best benefit as we do in B2C, but ultimately the best measure is the 'attitude' over the 'behaviour' of your customers.

CONCLUSION 1st Article: “The Royalty of Loyalty: CRM, quality and retention”  Customer relationship management (CRM) is an approach to managing a company’s interaction with current and future customers.  CRM will help company to know who their customer that always loyal with our business.  A company has to create customer relationship that deliver value.  CRM is an effective way is an effective way to maintain customer data base.  It concern about customer retention and it can be achieve by creating long term customer loyalty.

2nd Article: “Loyalty Research In B2B Contexts”  We can conclude that customers develop restriction-based and loyalty - regarding relationships with sellers.  Customer loyalty is a strategy that creates mutual rewards to benefit firms and customers. Customer loyalty is one of the factors that lead to creation benefit.  The study of customers staying with a firm as a result of loyalty is valuable, especially in the light of increasing academic and business attention being given to long-term marketing relationships rather than transactions.

OVERALL CONCLUSION  According to both articles, we can conclude that customer satisfaction greatly affects loyalty.  Customer loyalty is the result of consistently positive emotional experience, which includes the product or services. Customer develop restriction-based and loyalty –regarding relationship with seller.  Retaining customer is less expensive than acquiring new ones, and customer experience management is the most cost-effective way to drive customer satisfaction, customer retention and customer loyalty.

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