Impact of Customer Loyalty Program on Balenciaga's Performance

This study analyzes the impact of using customer loyalty program on Balenciaga's performance. It evaluates different strategies used for increasing consumer loyalty and examines their positive and negative impact. The aim is to understand the significance of customer loyalty program for the performance of Balenciaga.

BMM5582 Business Research

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
Overview......................................................................................................................................2
Research Questions......................................................................................................................2
LITERATURE REVIEW................................................................................................................3
RESEARCH METHODOLOGY....................................................................................................6
Research Method.........................................................................................................................6
Research Approach......................................................................................................................6
Data Collection............................................................................................................................7
Research philosophy....................................................................................................................7
Data Analysis...............................................................................................................................8
REFERENCES................................................................................................................................8
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Title: Topic- To analyze the impact of using customer loyalty program over the performance of
company. A study on Balenciaga.
INTRODUCTION
Overview
Customer loyalty describes an ongoing emotional relationship between the customers and
the organization which is considered to be the key factors that is essential for the development of
their relationships. In this study the performance of the company on Balenciaga is going to be
analysed due to the customer loyalty is going to be studied. The focus of the organization has
been to develop new understanding of how to generate the reputation of the business for
comprising the standards. This company is a luxury fashion house which was founded in 1919
for the Spanish designer Cristóbal Balenciaga in San Sebastian. For an organization involved in
the fashion industry customers loyalty is very important for competitive advantages. Growth of
the organization is considered to be very essential and effective in nature for the achievement of
results that materialistic advantages. This study will also explain how in the modern world the
use of mobile devices are helping to increase the customer loyalty for companies.
AIM
The aim of this study is to understand the significance of customer loyalty program for
the performance of Balenciaga.
OBJECTIVES
 To develop understanding relating to concept of customer loyalty program and its
importance.
 To evaluate different strategies which are used for increasing consumer loyalty with
respect to Balenciaga.
 To examine the positive and negative impact of use of these strategies with regard to
Balenciaga.
 To recommend some ways in which consumer loyalty program can be used for attracting
consumers.
Research Questions
Q1. What is meant by the concept of customer loyalty and how its it important?
Q2. Which strategies are used for increasing customer's loyalty in Balenciaga?
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Q3. How does the customer loyalty strategies impact Balenciaga?
LITERATURE REVIEW
Theme 1 Concept of customer loyalty program
The study of Budur and Poturak, (2021) explained that the customer loyalty program is
essential for the e-commerce marketing strategy which is the rewards loyal customers provide
for being frequently engaged with the company. The focus of the customer loyalty programs and
designed for the loyalty programs of the organization. It has been found that the repeated
purchases have been considered to be the key factor that provides the discounts, unique offers
and also VIP events. El-Adly, (2019) also contributed that these loyalty programs are considered
to be in many forms a simple stamp card collection or may be a sophisticated point based
rewards system. It has been considered to be the towards bring the customers back to the
engagement with the brands.
According to Rangriz and Bayrami Shahrivar, (2019) the study of customers loyalty
programs is not just about the discounts which the company is offering. It includes the purchase
history and the customer provided data for being studies time to and the ways of improving all
kinds of experiences. The companies can also be able grow their customer base and deliver even
more compelling rewards for the formation of the innovative partnerships that are related to the
business. Juanamasta and et.al., (2019) also is able to analyse how the business of the
organization is affected due to the increase in the customer's loyalty programs. It is a very
essential marketing approach which is essential and effective for the understanding the level of
engagement for the customers. The benefits provided by this brand is considered to be very
important part of the organization that is the key towards the success of the organization.
Srivastava and Rai, (2018) evaluated that the customer’s loyalty programs are considered
to be very beneficial for the organization. It has been found to be the essential required that
fulfils the customer retention techniques which are essential and effective for benefiting the
customers for the achievement of loyalty aspect for the friends and family. With the help of this
techniques the business is able to develop the common referrals methods that enable the business
to increase its reach in the market. Iglesias and et.al., (2020) customer loyalty program has been
found to be able to increase the cost efficiency of the business that is the key factor towards the
success of the business which through retaining the customers. It is also very important in the
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today digital marketing world as it provides the company the tools that required and essential for
the generation of the content that is based on the preferences of the customers.
Theme 2 Ways of increasing customer loyalty
Fida and et.al., (2020) explained that there are different ways in which an organization is
going to be able to increase the customer loyalty through the application of various strategies. It
has been believed that through increasing the customer centric practices in the organization many
businesses have been able to gain the success that is required for the achievement of the growth.
It is also very important for the business to be able to establish the customers service approaches.
Companies are able to build effective credibility that is essential for the personalization of the
customer's interaction that help in the achievement. Pekovic and Rolland, (2020) is able to gather
the information that is essential for the development of the additional value to the customers.
Potentially through invitation the organization is able to participate in the generation of online
community. The product of the organization is considered to be able to build momentum as the
customers is essential to support the goal. These types of presentation are considered to be the
opportunities which is essential for the presentation of rewards that are effective for the targeting
the communication.
Latif, Pérez and Sahibzada, (2020) explained about the Customer loyalty that it is very
important during the Covid-19 pandemic as the consumers to be extremely conscious of their
budgets. It repeats customers that are repeat customers tend spend money on the brand. The
focus of the organization has been to be able to trust the business for the achievement of the
growth. The article is considered to be the factor that is essential for the business owners to be
able to increase the brands customer’s loyalty in the pandemic era. Business owners that are able
to increase the brand customer loyalty in the pandemic era. Sudari and et.al., (2019) supported
that the considering the customers for everything that is done for the increase in the customer’s
focus. The generation of the customer loyalty is able cultivate more experience and growth for
the management of long haul while cultivating the customers. The cultivation of the customers
that are essential for the gathering of information. Important factors that influences the customers
are the cultivation of the customer's loyalty that helps in building the brand of the organization.
Nobar and Rostamzadeh, (2018) explains that knowing the customers are very important
for the personal growth of the organization as they are able to sell their stories and buy habits
that treat each one as a person. Wishing the customers on their birthday through a online system
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is very effective way of helping the organization develop the better relations with the customers.
Taking time is also very important for the company to be able to bake the goods which are side
hustle or are spacious for the places to fit or grow family. Hayati and et.al., (2020) was also able
to contribute about the ways in which the recommendations are helpful for the lives for easier
experiences that bring vision to the life. The customers are able to trust the brand that is essential
for the information. The focus of the customer’s needs to be on humanity of the brand that is
effective for the comfortability of doing the right business practices.
Theme 3 Positive and negative impact of customers loyalty programs
Zephaniah, Ogba and Izogo, (2020) analyses that the role of the marketing departments is
very important for the customer loyalty. The marketers are used for the responsibility of
positioning the products for crafting the messages for the creation of ads, posting on social
media. It has been proved to be a very effective way of understanding the sustainability of the
customer journey. This is the engagement that the business is able to gather the information for
the brand. NGUYEN and et.al., (2020) signifies that the increase the tracking customer’s data
backed for the fast growing capabilities as artificial intelligence that helps in drawing insights.
The marketing practices can increase the ways in which the customer’s data can be tracked for
using artificial intelligence at its maximum potential for drawing insights for making sense of the
situations. Customer loyalty platforms offer a way for the business to customer’s satisfaction and
retention.
Glaveli, (2020) explains that the customers that is essential behind a loyalty program is
the retention of the customers. The reward's system is essential for the repeating the behaviour
that is essential for the persons for regular patronization of the shows likes and trusts. In the short
the customer's loyalty program which is essential for the customers for selling the motivation for
the company to be able to establish the habits that are essential and effective for the organization.
The ways in which the retaining customers by giving them a solid motivation that is able to help
the company gather habits which are key for the establishments. Osakwe and Yusuf, (2021)
argued that customer loyalty can also be a negative factor for the organization. This is due to the
economic rush that is able to redouble the efforts which foster customer's loyalty numerous
articles for the increasing the importance of giving the trouble times for ensuring the customer's
retention.
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Aburayya and et.al., (2020) elaborates that the inventory management pricing and the
promotional planning are considered to be the data that enables the marketers to measure the
results of the special promotions which are based on the additional purchases. The use of the
additional channels is considered to be the factor that decreases the time between the purchases.
This is considered to be the key factor that helps the company to be able to manage the
performance of the company. Rashid and et.al., (2020) argued against this that explaining the
point which is able to use the collection for the data that is essential for the cross-sell and up-sell
that is essential for the extended warranties for the items for purchasing the suggestions and the
accessories. These are the factor that affect the profitability of the company on a particular
product level. This has been considered to be the factor that influences the promotions which is
less satisfactory for the results.
RESEARCH METHODOLOGY
Research Method
Research methods are the strategies, process and techniques which are used for the
collection of data or evidences for analysation of the new information about the created topic
(Zhu, Sari and Lee, 2018). Different types of research methods are considered to be the tool
which are useful for the collection of data. There are two types or research methods which are
qualitative and quantitative. Qualitative research is the research that uses the methods for
observing the case studies or result of the narrative as a descriptive account of a setting or
practice. Quantitative research is the process of collecting and analysing the numeric data that is
used for finding patterns and averages. In this study the qualitative research has been used that is
considered to be very effective for the ways in which the topic of customer loyalty for
Balenciaga company.
Research Approach
Research approach are the plans and the process for the research purpose that takes a span
of the steps for the broach assumption of the details and methods that are essential for the
collection of analysis and interpretation. There are two major approaches to the research which
are inductive and deductive. Inductive research involves the search for the pattern from the
observation and the development of explanation and theories which are essential for the patterns
for series for the hypotheses. Deductive research is considered to be the one that is able to
analyse the association with scientific investigation. This is the research that is able to existing
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theories of the phenomenon for studying the tests hypotheses for the emerging from those
theories.
Data Collection
Data collection is the systematic process of gathering observing or measuring the
performance and research for the business. It is considered to be the process that helps in the
collection of the data that can be used for the purpose of full filling the purpose of the
analysation of values. The performance of the business is considered to be the factor that is
essential for the collection of information. There are two different types of data collection
methods,
Primary sources:
The primary sources of data are the ones that are collected or gathered on first hand by
the researcher itself. Primary sources of data are surveys, observations, experiments,
questionnaire, personal interview and other forms of collecting information.
Secondary sources:
Secondary sources of data are the ones that is collected by someone else earlier. The
examples of secondary sources of data are, Experiments, Questionnaire, personal interview etc.
these also include books journals and internal records.
For this research both the primary and secondary sources of data are going to be used.
Research philosophy
Research philosophy is considered to be the belief which is about the way in which the
data is gathered, analysed and used. This is also the term epistemology that is opposed to the
ways in which the doxology is able to encompass the different philosophies to the research.
There are two different types of research philosophy that are, positivism and interpretivism.
Positivisms the is the philosophy to research that is factual knowledge for gained through the
observations. This is also included with the help of research that is limited to the data collection
and interpretation in an objective way. Interpretivism is the research philosophy which is based
on the principles that state that the researcher has a specific role in observing the social world. In
this project the chosen form of research philosophy is interpretivism which will help in
evaluating the information that is essential for understanding the research approach.
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Data Analysis
Data analysis is the process of systematic application of statistical or logical techniques to
describe and illustrate condense and recap of the evaluated data that is required for the
achievement of the organizational goals. For the analysation of this research the survey
researcher will be conducting a thematic perception test technique. It is also the technique that is
selected as it helps in analysing the qualitative data effectually. The analysation of the
consideration that is helpful for the responses of creating different themes. It will help in
understanding the importance of customer’s loyalty for an organization.
REFERENCES
Books and Journals
Aburayya, A., and et.al., 2020. An empirical investigation of the effect of employees’ customer
orientation on customer loyalty through the mediating role of customer satisfaction and
service quality. Management Science Letters. 10(10). pp.2147-2158.
Budur, T. and Poturak, M., 2021. Employee performance and customer loyalty: Mediation effect
of customer satisfaction. Middle East Journal of Management. 8(5). pp.453-474.
El-Adly, M.I., 2019. Modelling the relationship between hotel perceived value, customer
satisfaction, and customer loyalty. Journal of Retailing and Consumer Services. 50.
pp.322-332.
Fida, B.A., and et.al., 2020. Impact of service quality on customer loyalty and customer
satisfaction in islamic banks in the Sultanate of Oman. Sage Open. 10(2).
p.2158244020919517.
Glaveli, N., 2020. Corporate social responsibility toward stakeholders and customer loyalty:
Investigating the roles of trust and customer identification with the company. Social
Responsibility Journal. 17(3). pp.367-383.
Hayati, S., and et.al., 2020. Customer satisfaction as a mediation between micro banking image,
customer relationship and customer loyalty. Management Science Letters. 10(11).
pp.2561-2570.
Iglesias, O., and et.al., 2020. Co-creation: A key link between corporate social responsibility,
customer trust, and customer loyalty. Journal of Business Ethics. 163(1). pp.151-166.
Juanamasta, I.G., and et.al., 2019. The role of customer service through customer relationship
management (Crm) to increase customer loyalty and good image. International Journal
of Scientific and Technology Research. 8(10). pp.2004-2007.
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Latif, K.F., Pérez, A. and Sahibzada, U.F., 2020. Corporate social responsibility (CSR) and
customer loyalty in the hotel industry: A cross-country study. International Journal of
Hospitality Management. 89. p.102565.
NGUYEN, D.T., and et.al., 2020. Impact of service quality, customer satisfaction and switching
costs on customer loyalty. The Journal of Asian Finance, Economics and Business. 7(8).
pp.395-405.
Nobar, H. B. K. and Rostamzadeh, R., 2018. The impact of customer satisfaction, customer
experience and customer loyalty on brand power: empirical evidence from hotel industry.
Journal of Business Economics and Management. 19(2). pp.417-430.
Osakwe, C.N. and Yusuf, T.O., 2021. CSR: A roadmap towards customer loyalty. Total Quality
Management & Business Excellence. 32(13-14). pp.1424-1440.
Pekovic, S. and Rolland, S., 2020. Recipes for achieving customer loyalty: A qualitative
comparative analysis of the dimensions of customer experience. Journal of Retailing and
Consumer Services. 56.p.102171.
Rangriz, H. and Bayrami Shahrivar, Z., 2019. The impact of E-CRM on customer loyalty using
data mining techniques. BI Management Studies. 7(27). pp.175-205.
Rashid, M.H. U., and et.al., 2020. Exploring the relationship between customer loyalty and
financial performance of banks: Customer open innovation perspective. Journal of Open
Innovation: Technology, Market, and Complexity. 6(4). p.108.
Srivastava, M. and Rai, A.K., 2018. Mechanics of engendering customer loyalty: A conceptual
framework. IIMB management review. 30(3). pp.207-218.
Sudari, S., and et.al., 2019. Measuring the critical effect of marketing mix on customer loyalty
through customer satisfaction in food and beverage products. Management Science
Letters. 9(9). pp.1385-1396.
Zephaniah, C. O., Ogba, I. E. and Izogo, E. E., 2020. Examining the effect of customers’
perception of bank marketing communication on customer loyalty. Scientific African. 8.
p.e00383.
Zhu, M., Sari, A. and Lee, M. M., 2018. A systematic review of research methods and topics of
the empirical MOOC literature (2014–2016). The Internet and Higher Education. 37.
pp.31-39.
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