Impact of Technology on Customer Loyalty

The given assignment focuses on the impact of technology on customer loyalty in different sectors such as e-commerce, retail banking, and Indian private healthcare. It examines the influence of virtual experiential marketing, social media, and company support on customer satisfaction and loyalty. The study also explores the role of reputation in creating loyalty in the restaurant sector and the effects of load balancing cloud computing on business transactions.

BENEFITS
AND
CHALLENGES
OF
CUSTOMER LOYALTY

Table of Contents
INTRODUCTION...........................................................................................................................1
Overview of the company......................................................................................................1
Customer loyalty....................................................................................................................2
Significance of consumer loyalty...........................................................................................4
Benefits...................................................................................................................................6
Challenges..............................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Customer loyalty refers to that criteria in which people choose specific ship or brand and
fond of purchasing and using its products. It will generally occurred when a person get highly
satisfied by their service and quality of particular goods or services. It can be considered as key
element of customer relationship management and describes loyalty which established between
client and an organisation, people, goods or brands (Cook, 2012). There are several reasons
behind client loyalty such as psychological, economic, technical, contractual and so on. This
assignment is based on Maybelline LLC which can be considered as major brand of American
make up sold al global level and subsidiary of French cosmetics company. It was created by an
young entrepreneur names Thomas Lyle Williams around the year 1915. Its headquarter is
situated in New York of United States. This essay includes customers loyalty along with its
various kind of benefits as well as challenges.
Overview of the company
It is observed that current scenario to changing trends of market are improving the
interest if clients towards fashion. Due to providing various kind of new and unique products ,
people are fond of adopting and using them. And it will somehow beneficial to increasing
customer loyalty of people for a particular brands (Grissemann and Stokburger-Sauer, 2012).
The presented assignment is based on Maybelline which is a very famous brand of cosmetics at
international level.
This company is basically deals in cosmetics which offers several products like eyeliners,
mascaras, brows and eyeshadow. It also renders various face products such as BB creams,
concealers, contouring, foundations, powders, primers and so on. This firm also expand its
product collection by providing lip balms, lip colours along with lip gloss or liners. This firm is
use to sell its goods through mass market including retailers, drug stores and supermarkets in
United states along with online retailers. It is also started to render brushes, accessories as well
as make up tools or removers (Giovanis and Athanasopoulou, 2014).
Maybelline was officially becomes Maybelline New-york around the year 2004. But in
today's changing trends of market era, it becomes number one cosmetic brand at global level
across 90 countries. Market segmentation of this organisation targeted to 15-35 7year old
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females and it is modern contemporary brand for all women along with all races. They are trying
to produce different versions of products as per demands of various nations.
Visions and missions of Maybelline
They have vision to attract more talented employees along with retaining the current ones
to strive to bring on board of staff from different horizons, nationalities ethic origins and
backgrounds. It is also included that their first priority is economic procedure shared by all
employees and to those who devote their talents, energy along with commitment.
The mission of this enterprise is to render such effective products to people all over the
world as gift of beauty which defies all age and transform each person's dream. They are trying
to provide better quality goods that suits to geographical area boundaries by fostering continuous
research and innovation (Ha and Park, 2013).
Customer loyalty
This term may refers to outcomes of consistently positive emotional experience, physical
attribute based satisfaction and perceived value of using product or services. It ca be considered
as an art of client loyalty as it is necessary to build company customer love. This concept is also
defined as the new way of marketing because in today's era, people have endless amount of
information about any organisation. The company have to build brand loyalty in many different
shapes and forms by taking some important decisionsn (Ladhari, Ladhari and Morales, 2011).
Fundamental elements of customer loyalty:- It is very obvious that there is not a magic bullet
to client trueness and it can be generated in an instant. There are several umbrella factors at high
stage will go into consumer loyalty towards Maybelline. Every such element fulfil an essential
role in keeping client returning, though not all those are needed to really capture trueness.
Expectations:- There are various expectations of people and it is necessary to known
value clients exactly get out of desired goods or services. It is all about marketing activities and
price points in such a way that firms have to provide actual features equivalent to paid amount of
money by people (Kandampully, Juwaheer and Hu, 2011).
Service:- It is important for company to enhance their customer services by focusing on
various kind of needs, wants, taste, demands, desires and preferences. When a firm manufacture
its goods or services by kept in mind clients wants then it become easy to gain their satisfaction
along with sales as well as profits. The Maybelline have to considered each and every
interaction with people as a loyalty earning moment. Consumers having issues will be sort out
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quickly and efficiently. It will be impacts great if they will ask for feedback along with
suggestions to enhance qualities of products to make it more effective and attractive.
Engagement:- It is observed that firms have to provide a little reminder about whet they
have change or modify in their goods or services as people need it. Client engagement can be
defined as to generate an ongoing connection between customers and brand. This can be build by
maintaining regular conversation through various means such as email newsletters or social
media. They can proposed several client incentives and loyalty procedures like online
communities which allow them to connect with each other (Klassen and Vereecke, 2012). Every
moment of engagement is also considered as loyalty earning moment as whenever people opens
in app they reads brand tweet. They will observe newsletters in their inbox can be an opportunity
to rigidify or deepen the relationship.
Values:- It is refers to that aspect which means clients are beginning to judge brands to
match their taste or preferences. It is all about emotional engagement is overtaking rational
involvement with client's own values. It is closely related to expectations including match of
brand identification of customer.
Trends driving customer loyalty
Many of firms are increase to conduct loyalty procedure membership in previous year
(Persson, 2011). Such programmes becoming more sophisticated, moving beyond traditional
spend and get model to omni-channel and multichannel. They will help to recognize clients for
each interaction they make with brand. There are several trends which are bale drive customer
loyalty for Maybelline are given below:
Omni-channel and multichannel programs are replacing traditional programs:- It is
observed that many of organisations are utilising loyalty events based on omni-channel which
connects people to brand across all touch points seamlessly. And renders members with chance
to be awarded for spend an engagement across channels. It captures data which mat provide
support to derive personalised conversation along with better consumer experiences (Kumar and
et. al., 2013).
Consumers expect personalisation:- This factor refers to kind of correlation is founded
between personalised and client satisfaction. It means that maximum people are effectively
satisfied with loyalty events with high personalisation. And these loyalty procedures make
people feel special and recognised as more satisfied.
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Partnerships have increased:- There are various kind of ventures, mergers and
acquisitions are taking place to enhance goodwill of brand. In recent years, it is observed that
brand partnerships take centre stage as strategy for growth. It will support brands to extend
additional value beyond that they render alone. They applies loyalty campaign or an evergreen
event as correct venture provides new and unique methods to award clients which will drive
sales along with loyalty.
Consumers expect brands to be socially responsible:- It is important for Maybelline to
focus on its social responsibilities by which it can enhance their image of brand in front of
clients. Many of firms are expecting to go beyond creating profits and serve as drivers of
modifications to become active in their communities. It impacts to improve brand image amongst
clients (Kumar, Sunder and Ramaseshan, 2011).
Premium loyalty programs are becoming more appealing:- These procedures are able to
gain popularity for brand as members want benefits that programs like Amazon Prime provide
and are willing to pay for it. These events are more helpful to expand brand image in front of
people.
Emotional loyalty key:- This term can be considered as an important, strong and unique
factor driver of loyalty. It simply referred that companies must invest in measurement
frameworks which may support better understanding about those steps along with emotions they
should elicit interaction points to engender true loyalty (Kashif and et. al., 2015).
There are different kind of fundamental elements which are included in customer loyalty
which are needed to be considered by Maybelline. Along with that it is also mentioned above
about several drivers of attaining client loyalty for an organisation.
Significance of consumer loyalty
Customer loyalty is an essential factor to retain people to brand for a long time because it
will a facilitate long tern profits for an organisation. It is very common that firm need to acquire
new clients to gain growth but if it is believed that to attract new customers cost sex times more
than retaining current ones (Kuo and et. al., 2013). People are responsible for profits of any
business then it is more important to keep focus on their needs along with preferences to
complete them exactly.
Importance of client loyalty:- There are several importance of building brand loyalty of clients
and some of them are given below:
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Engagement and building relationships:- It is well known that making up brand loyalty
of people by conducting different events regarding it have an essential impacts on sales along
with profits of any business. It is become significant if they make possible to gain engagement of
a person with brand then they will definitely become loyal to that particular organisation or
brand. The firm should always conveyed them courtesy back and constantly engage as it breeds
positive connections. It is fact that more effort ably they interact and better will be the number of
client loyalty. Such types of conversation helps to create relationships and results in focussing on
people and able to generate an effective bond with them (Lee, 2013). It is also necessary to make
this relation only to build profits for the profession but not for other aspects. Overall, Maybelline
have to build good relationships through efficient communications and put efforts to attain them
into completely loyal clients.
The power of word of mouth:- Element of client loyalty may considered as an
instrumental in supporting for spreading the word an d become brand ambassadors. The power
of word of mouth can be included in marketing. It is fact that if person like to use the product
then they will promote or share it to their family and friends. Then it will facilitate marketing
through to customer to customer mode. The will make product familiar to those people who don't
know about he same. The relationships prepared with people are may leads to word of mouth and
then other referrals (Kondasani and Panda, 2015).
Loyal customers lead to repeat business:- This term refers that sense, a person can count
on to purchase from the same firm again again and again is more valuable then one who
disappears after the first transaction. It is helpful in which loyal clients tend to build more then
single dealing. Maybelline may be observed that 20 percent of existing customers are able to
create 80 percent of profits and marketing metrics state. Opportunities for new clients is 5-20%
but for current clients it is 60-70%. It is well known that they re more likely to explore and try
out various goods or service. The firms have to make loyal consumers so that they will spend
more as they already trust brand (Luo and et. al., 2011).
Eliminate the competition:- If an enterprise is able to make number loyal clients then it
to beneficial to eliminate competitive firms. Such people feel that they are getting good value,
quality and service from company as they are unable to go else where. Trueness of people will
facilitate yo stray towards competition as they become stronger with support of loyal clients.
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Economic benefits:- It is essential to retaining and building loyal people results to
prepare sense to make strong economy. It includes that it will improve profitability of
Maybelline as they costless. Loyal customers are tend to spend more with brand and business
profits.
There are various kind of important treasons for which Maybelline have to put efforts
towards building loyal clients for making string image of company. This will facilitate to
improve productivity as well as profitability of an organisation.
Benefits
It is very obvious that a firm can earn more money and improve advertising conversion
rates by building client loyalty for specific brand. It is also analysed that there are several
necessary hidden benefits for which businesses have to aware of. They involve some of
marketing aspects which are described below:
Brand Ambassadors:- From the marketers point of few they are familiar with idea of
paid, owned and earned media. It is observed that may of marketers are still associate with third
type earned media with public relation campaigns. It seems to be as part of which they hope to
improve brand exposure by trying to get brand related stories (Khiyaita and et. al., 2012).
Pricing:- Benefits of making and maintaining loyal consumers is that at certain stage,
they can generate immunity level to pricing criteria of company. It will provide support to set
higher standards without losing customers.
Forecast accuracy:- Attaining loyalty of people will help to become able for making
more appropriate sales forecasting. Basically. It is considered as biggest challenge facing by new
business at initial stage.
There are various benefits of customer loyalty which will increase sales and profits along
with it to expand growth of particular business at domestic as well as global level (Nacif, 2012).
Some of benefits which can be gain by Maybelline are given below:
It's cheaper then Acquisition:- This term can be defined as it is less expensive then
adopting an acquisition. It is all about that it costs five times as much to acquire a new client may
nor totally accurate. The basic principle is spot that it's more effective to keep someone in fold
then to bring in new customers.
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Loyal customers are more profitable:- To gain loyalty is less expensive then attaining
new client for particular brand. It is so because loyal clients provides profits for long time for an
organisation and it is not required more amount of money to spend.
Brand stand out from the crowd:- Loyal clients are bale to make a unique image of a
particular brand and build a string position in market competition in front of people. Most of
companies are focussed on acquisition which makes retention centric in front of people.
Ask for more feedbacks:- It is considered that feedbacks are critical to success of any
business. People are bale to render feedbacks are generally willing to give brands benefits of
doubt. They often provide such idea of earning the business repeatedly.
Customers will explore brands:- It is very common they if person likes the product and
highly satisfies then they want to purchase that repeatedly. Besides of this, they will attempt an
approach of marketing of customer to customer for promoting the specific goods or services
(Peslak, 2011).
Loyal clients are more forgiving than others:- It is fact that of a person id regular client
for particular product or brand then if they are facing some issues then it is normal that they will
forgive company for that problem. But in case if they are fist or second time user then they will
not forgive and leave it to choose other brand.
Customer will welcome the promoting events:- It is well known that people get bored by
repeating marketing activities and want to skip that normally. But loyal customers does not skip
advertisement of their regular utilising products and fond of watching it curiously that whether
they are introducing something new or not.
Earn wiggle room to try new things:- It refers to that fact, loyalty is fickle, so too many
modifications could chase people away. But if firm had establish a core base of proven clients
that brand can enhance its boundaries (Senders, Govers and Neuts, 2013). It may referred as new
messaging criteria or new product line or even new logo. Bottom line is as long as Maybelline
maintain the basic premises that keep propel in corner which stick with brand.
It's better for employee health:- It is all about to make client relation with brand or an
organisation regarding aspect of customer retention. Better relationships are able to build life
better for everyone and they are mutually beneficial. They are very price sensitive and come with
lot of attachments.
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There are different types of benefits which can be achieved by building better customer
relationships as it will facilitate to make client loyalty to attain long tern profits. By this
Maybelline can be enhance its brand image in front of people and prepare strong position in
competition of market trends.
Challenges
There are several kind of challenges which are facing by organisation while conducting
loyalty programs to gain trust of public towards the particular brand. Impacts of challenges may
defined that which of them are bale to generate value in future in front of people to make brand
more effective as well as efficient. Some of challenges due to marketing purpose are given
below:
Managing alliance wide marketing:- It is analysed that loyalty procedures are attractive
usually for affinity marketers who are related to businesses. This will make easy to lead with
point statements bulging in often irrelevant co-branded stuffer.
Treating customers fairly:- It is necessary to focus on promoting the brand for attaining
improvement in sales as well as profits of an organisation. But apart from this, they have to adopt
that criteria of treating each and every client in proper way. This is necessary because it impacts
on their thinking to make decision of purchasing specific brand (Chang, 2013).
This can be defined as an important aspect that customer loyalty is an integral part of
client promise and ion today's highly competitive markets. Loyalty is a key target to secure
recurring sales as well a positive reviews and recommendations. In case of retailers, loyalty of
people towards brand means generation of recurring sales coupled with ongoing and positive
word-of-mouth advocacy. Some of challenges facing by Maybelline while conducting customer
trueness programs are as follows:
Define brand loyalty objectives:- It is important to define main strategy of loyalty
procedures and render suitable questions regarding to the firm's main goals (Turunen and
Toivonen, 2011). This will create a method to improve public image of specific brand.
Determine key loyal habits:- It is necessary to observe and identify the basic habits
which are bale to build client loyalty for particular organisation. Moreover, client habits can
differ additional purchases, choosing one brand consistently over another, recommending brand
in social or familiar circle or online reviews and activity of social networks.
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Identify loyal client profiles:- It is necessary to first know about those factors which are
essentials of loyal customers to target them. There are various kind of client having different
thoughts then it is challenging to identify target loyal clients (Vincent, 2012).
Rewarding proper achievement of loyalty:- It is important to organisation that they have
to provide suitable rewards or coupons to their loyal clients. It will make them fell valuable for
specific brand and also motivate them to become long time client for same company.
Measuring accurate achievements of loyalty objectives:- It is necessary to calculate that
amount of efforts towards attaining customer trueness is exactly beneficial or not (Webber,
2011). Sometimes, it is nor appropriate as per efforts of organisation and it may considered as
challenge for Maybelline.
There are various kind of challenges which may face by Maybelline as it is important to
observe, evaluate and control these problems regularly. This will become supportive to
organisation to gain better outcomes in case of gaining client loyalty as well.
CONCLUSION
The above essay had concluded that it is necessary to maintain customer relationship in
order to build effective client loyalty so that they become able to attain better productivity as
well as profitability for along it will render opportunity to achieve better sales along with profits
as long term benefits, building client loyalty have different importance and benefits so that firms
have to put efforts for that. It is also essential to evaluate and control the challenges of customer
loyalty as well.
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Online
Five Challenges of Loyalty Programs. 2018. [online]. Available through:
<http://customerthink.com/five_challenges_loyalty_programmes/>
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