With the intensification of the competition in the business world, retailers have had to come up with programs meant to help them attract, understand, retain, and manage the cost of its customers while also increasing its profitability. Among the major strategies has been Customer Relations Management programs (CRM). Retailers have continued to take advantage of such strategies as membership programs to enable them remain competitive in the market. With such changes, having a close relationship with our favorite retail has a lot of benefit, including increase in company’s share of wallet. Which define as the percentage of the customers’ purchase made from the retailer (Levy and Weitz ).Sometimes we, as customers, don’t mind pay more, or even travel back and forth to their stores, to meet our personal sales and of course get our specific items. This kind of relationship might require a long process, and personal experiences by the customers. However, this could easily happen if one retailer generates correct and effective strategies to build customer relationship. Assigning and applying strategies to generate customer relationship might also cost a lot of expenses. However, once this particular strategy succeeds, this will lead to increase in customer loyalty, and hence retailers will be able to maximize their profit eventually. To be honest, I had no idea what customer loyalty is before I came and join this class. However, now I fully understand how it works. In fact, I have unconsciously built a strong relationship with one of well-known specialty department stores, Neiman Marcus specifically in Bellevue, WA area. The story began when I intended to find a specific designer of shoes 2 years ago. I had no idea what Neiman Marcus... ... middle of paper ... ...tand that, customers will be motivated at their best, when get rewarded, because of their purchase. Finally, Barney’s New York, one of first tier specialty department stores, has implemented their CRM programs to the customers, locally and internationally. This is what differentiates Barney’s with other competitors such as Nordstrom and Neiman Marcus. The competitors haven’t be able to provide international customers their private-label credit card, because they don’t have SSN. While, with Barney’s international residents are more than welcome to come to store, bring their passport, and do the paperwork. Both Barneys and Victoria’s secret did a good job on explaining on how the way their rewards program works to the customers as explicit as possible. This is so important to prevent misunderstandings between what customers have expected with the retail perspective.
Macy’s intended to deliver enhanced shopping experiences to its consumers through dynamic department stores and online sites. In this regard, the company developed a North Star strategy that allows it to improve its sales growth and to develop its existing core activities. The company’s consumer research monitors, analyze and anticipate their needs and wants based on the changing market trends. This allows it to strengthen its customer base and also helps it in identifying new markets and customers. Macy’s also identifies different styles and designs based on various occasions and events that allow it to capture the changing preferences of its customers. The company also celebrates various iconic events to interact with its customers which
First, Nordstrom is unique through its excelling customer service. As a full-service retailer, Nordstrom assists customers in every phase of the shopping process. Because they carry more specialty goods, customers will need and want more assistance leading to increased value of customer service. One of their policies is that they will accept any merchandise that people bring back without asking any questions. As a result, people feel more confident about purchasing products from there, since they can buy something with the comfort and knowledge that Nordstrom has an excellent return
Nordstrom can continue providing their exceptional online experience and client focused approach using their online system by offering an unmatched online experience that copies their in-store customer service. This would allow Nordstrom to raise its revenue considerably as well as further improving their brand image. I will also discuss specific ways of successful execution, and the steps required to provide Nordstrom a stunning picture of how to execute strategy.
Hansen, Torben, and Hans S. Solgaard. New Perspectives on Retailing and Store Patronage Behavior: A Study of the Interface between Retailers and Consumers. Boston, Mass: Kluwer Academic Publishers, 2004. USC Upstate Ebook. Web. 28 February 2011.
Due to the good establishment of the business, it has huge market national. The company has therefore opened many retail shops and stores all over the country to ensure that their products are accessible to the customers. The entity provides a favorable environment, and many clients view the place as a fun shopping place to be. The retailer has targeted a big pool of customer because of the variety of products it sells. The stores products vary from kitchen goods, jewelry, and electronics clothes to hardware
According to Speer, one of the secrets that make Nordstrom customers service become successful is the relative absence of rules and guidebooks (2012). In addition, based on the company’s policies, Nordstrom allows its customers to return their purchased items all the time. It is not only for customers shopping at Nordstrom stores but it is also for those who shop from their website can get free shipping and free return. Moreover, since Nordstrom provide the service of “matching price” and sale adjustment, which help to increase customers’ satisfaction because, they believe that Nordstrom always offer them best price for quality products.
Nordstrom possesses a distinct and reputable image that effectively differentiates them from their competitors. Nordstrom is known throughout the retail sector as the leader in customer service. Nordstrom regards their customers as extended family and treats them as such. In addition, Nordstrom utilizes devoted sales associates for serving customers in an array of fashions. They possess the most liberal return policy that is highly regarded among customers. Also, sales associates will call in orders for merchandize not on hand free of charge. Recently, Nordstrom has
In conclusion, retailers differ to attract different customer bases. Retailing proves to be rather complex because it “encompasses the business activities involved in selling goods and services to consumers for their personal, family, or household uses” (3). Wal-Mart and Apple Inc. strive to satisfy their consumers by appealing to them in different ways with the computers. The purchasing process differs between the two retailers as well. Overall, how one purchase a product, such as a computer shows how every process and activity we do in business plays a
Over the previous couple of decades, modern business has been evolving rapidly and the retail industry has been no exception. Whereas previously the customers received retail ads and offers from disconnected sources, today retailers are operating a combination of all available retail marketing methods to reach the customer.
High levels of customer satisfaction will not guarantee future sales, but are more likely to result in repeat future sales than indifferent or poor customer service. Moreover, satisfied customers are more likely to try out other products/services in the firm’s range, or recommend it to friends and family. Build on customer loyalty Customer loyalty is valued highly by most businesses and can be
Ninety percent of Canadians are enrolled in at least one loyalty program. Market research has shown that loyalty programs are growing to be very popular in today’s market. A loyalty program is a program offered by a company to customers, who make frequent purchases. Loyalty programs are of benefit to both the consumers and the business. The consumers benefit by receiving coupons, special access to sales and new products whereas the company benefits by gaining an abundance of knowledge about the consumers, through their purchasing habits. Loyalty programs have proven to be very successful for several companies such as Target, Starbucks, and Shoppers Drug Mart. The senior management in sales and marketing believe that initiating a loyalty program
Richards, K., & Jones, E. (2008). Customer relationship management: finding value drivers. Industrial Marketing Management, 37, 120-130.
Customer relationship management has become the marketing buzzword of the past two decades with business-to-business firms jumping in, many without really being certain of what they hope to achieve from it, and oftentimes being disappointed with the results.
Customer relationship management is a cross-functional process to achieve a continuing dialogue with customers, across all their contact and access point, with personalized treatment of the most valuable customers and to ensure customer retention and the effectiveness of marketing initiatives. It is also provide the chance for customers to interact with the brand.
There are many description and theory of customer loyalty. We should research and compare which theory is suitable for our business.