Summary: Buyer Relationship Management And Customer Loyalty

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Customer Relationship Management and Customer Loyalty

Customer Relationship Management (CRM) is a software program that retailers are using to increase loyalty from their best customers and grow their business. Customer Relationship Management is a business philosophy and set of strategies, programs and systems that focus on identifying and building loyalty with a retailer’s most valued customers” (Levy & Weitz, 2011, p. 275). Creating a relationship with a retailer’s most valued customer is different from trying to get as many customers as possible. CRM relates to a company’s attempt to take the customers who are already loyal and purchase goods or services frequently and target that patron with more personalized attention. Research
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Customer loyalty can be defined in many ways. Michels and Bowen claim customer loyalty is “a deeply held commitment to re-buy or re-patronize a preferred product or service consistently in the future, despite situational influences and marketing efforts having the potential to cause switching behavior” (as cited in Sivadas and Baker-Prewitt, 2000). It has also been said to be the tendency to repeat purchase from the same store where a “physical and emotional commitment given by customers is in exchange for their needs being met” (Pandey & Darla, 2012, p.603). It is tied to an awareness of a product or service and the resulting emotional experience one derives from that product or service. Customer satisfaction is not the same as customer loyalty. If a customer walks into a store and purchases a product and may be completely satisfied but may never walk into that store again. Loyalty is being committed to a retailer so closely that a choice is made to purchase merchandise and services from a specific retailer and attempts by the competitors to get that business is refuted. What are the benefits of building customer loyalty? Jill Griffin, in her book, Customer Loyalty – How to Earn It and How to Keep It, indicates several advantages of loyal …show more content…
Retailers seek to build a base of loyal customers and increase the revenue they earn from those customers. They can target those customers with specific and personalized services and offerings not available to customers that are not deemed as loyal. As was discussed previously, customer loyalty can provide numerous economic benefits to the business. Examples of different retail sectors that can benefit from a customer relationship management program include hotels, casinos, supermarkets, banking and the automotive

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