Relationship Marketing for Improving Customer Loyalty: A Study on Morrison
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This study analyzes the relationship marketing factors in order to enhance customer loyalty with Morrison, the fourth largest supermarket chain in the UK. It includes literature review, research methodology, findings, and recommendations.
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TABLE OF CONTENTS INTRODUCTION...........................................................................................................................3 Background of the study..............................................................................................................3 Aim of the study..........................................................................................................................3 Objectives....................................................................................................................................3 Significance of study...................................................................................................................3 LITERATURE REVIEW................................................................................................................4 Theme 1 Meaning of the relationship marketing.........................................................................4 Theme 2 Strategies of relationship marketing for promoting the customer retention.................4 RESEARCH METHODOLOGY....................................................................................................4 Research type:..............................................................................................................................4 Data collection:............................................................................................................................5 Data analysis:...............................................................................................................................5 FINDINGS AND DISCUSSION....................................................................................................6 CONCLUSION................................................................................................................................9 RECOMMENDATION...................................................................................................................9 REFERENCES................................................................................................................................1
INTRODUCTION Background of the study Relationshipmanagementdefineastheprocessofthe“Customerrelationship management” it is the strategy which used by the organisation in order to develop the long term relation with the customer (Amoako, 2019). It is the effective strategy which is used by the organisation in order to develop their customer base for their business. Morrison supermarket chain of UK and consider as the fourth largest supermarket chain in the United Kingdom, headquarter is in Bradford, England. This research is based on analysing the relationship marketing factors in order to enhance the customer loyalty with the organisation. Aim of the study To assess the significance of relationship marketing with regards to improving customer loyalty in the context of UK retail sector: A study on Morrison. Objectives To understand the concept of the relationship marketing. To assess the strategies of relationship marketing in order to enhance the customer retention for the Morrison. To recommend various strategies of relationship marketing for the organisation in order to build loyal customer. Significance of study Relationship marketing is essential for the organisation in order to increase their revenues. the main aspect of selecting this topic for the study is to bring the concern as how businesses uses the approaches in order to develop the loyal customer for their product and services. This topic is important as it gives the relevant information to the businesses, this information can help them to retain their customer and to make them their potential customer.
LITERATURE REVIEW Theme 1 Meaning of the relationship marketing According to theLian and Yoong, (2017)marketing is the important aspect which enables the businesses to achieve their desire revenue goals. It is essential for the organisation to have the loyal customer who support their business. Therefore, relationship marketing is the term which describe as how company build their loyal customer base by providing them better services and products. This process is able to improve the customer experience within the organisation, it mainly focus on the overall experience instead of only concentrate on the sales. For the businesses it is important for them to foster the consumer loyalty and delivers the product which meets the demands of the customer. Theme 2 Strategies of relationship marketing for promoting the customer retention As per the view ofPutra and Putri, (2019)relationship marketing has the different aspects which the businesses used in order to develop the potential customer base. Networking is one of the strategy which is used, it is the powerful approach. it helps the businesses to increase their brand awareness in the market which is beneficial to attract the customers. It is important to listen to the customer, it is the major aspect which the organisation can do in order to connect the loyal customer with their business. organisation are required to provide the real time problem solver process which can solve the customer issue. it is also beneficial in order to receive the feedbacks from the customer which helps the organisation to make innovation in the product to fulfil the customer demand. RESEARCH METHODOLOGY Research type: Research is the systematic approach for studying the different sources and materials for developing the new knowledge and theories. It is further divided into the processes which are qualitative and quantitative research type. Qualitative define as the research type in which the data is collected from the open sources, communication with the participants during the questionnaire and interviews (Khan and et.al 2020). Quantitative process defines as in which the researcher collects the data which is basically in a numerical form, it involves the figures. there is a negative point in the quantitative as any fault in the numbers can mislead the research study it
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deals with the numbers while qualitative deals with the words and the meanings. To complete this study research analyst will do the qualitative research due to its high flexibility which is helpful in order to carry out the research study. Data collection: Data collection is the process of collecting the data for completing the research study. It is the method through which the research analyst gathers the data from various sources in order to reach to the desire research outcomes. It further divided into the approaches which are primary and secondary data collection. Primary data is collected from the open communication with the participants whom are invited by the researcher in order to arrange the data. Secondary data collection define as data is collected from the existing sources in this data sources can be books and journals, existed articles and so on. To complete this research study analyst will follow the secondary data collection approach which is beneficial in terms of cost effectiveness, or it is efficient for giving the foundation of the research. Data analysis: It is the analysation process in which the analysis of the data can be done in an organised manner. data analysis is the process which is used by the researcher in order to processed the collected data for obtaining the pattern from it. This process can be done in the approaches which are thematic and statistical data collection (Zhang and Dai, 2019). Thematic data analysis defines as the process in which it uses the qualitative approach, it involves the study from the large data sets, searching of the data and reporting the repeated pattern can have done by this approach. Statistical data analysis uses the quantitative approach it involves the different statistical functions, it is used to quantify the data, and mainly involves the observational data. to complete this research study analyst will do thematic data analysis as it allows the researcher to use many sources to interpret the data from data sets, and offers a great flexibility.
FINDINGS AND DISCUSSION On the basis of above secondary data and graph, it can be said that companies give high priority to customers’ experience and relationship. 76% of organisations in the UK believe that relation marketing or increasing customers’ experience is important for increasing overall organisational productivity (Gupta, Mishra and Tandon, 2020). It can make companies beneficial. After covid- 19, retailers of UK are striving hard for being in the competition. Hence, they need to improve relation with customers by which they can increase customers’ retention and attraction rate. Increasing customers’ retention is related with increased sales and productivity. On the basis of data, it can clearly be said thatMorrison. Should focus on relationship marketing in order to increase customers’ experience and accomplishing its goals it will be beneficial for them to enhance their market reputation as well as to increase the revenues for the organisation.
On the basis of above graph and secondary data, it can again say that customers’ experience can have positive impacts and can make them loyal tiowards business. If orrson focus and invest on relationship marketing then it can incraesr customers’ loyalty. In regard to customers’ loyalty, it can be said that loyal customers are more likeky to stay with business and they do not shift brand easily. It can increase their customers’ retention rate and can help them out in taking competitive advanatges (Ali, Kim, and Jeon, 2018). Morrison can find easier in business expansion by grabbing attention of customers and retaining them within business in this post-Covid 19 situation. In addition, it can also be said that nowadays, customers have more buying power than 3 years ago and it is the reason as Morrison needs to improve relation with them. It can help it out in increasing sales and decreasing their bargaining power to attract the customer towards their product and services in order to convert them into the loyal customer.
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Survey have been conducted on customers in order to know their needs and prefernece. It is important to know their needs and factors that they consider while buying products from specific brand. On the basis of results of secondy data and an existing survey, it can be said that majority of customers prefer to buy products from those companies and retailers that offer loyalty program. 60% customers said that their retailer provide retailer loyalty program. On the basis of this, it can be said that more than 50% of retailers of UK offer loyalty program and focus on improving relation with customers. They believe that improved relations with customers can makethembeneficial(Sánchez-Casado,Artal-TurandTomaseti-Solano,2019).Thereis requirement for retailers to offer loyalty programs and invest in rekationship marketing if they want to accomplish their goals and want to increase productivty. In addition, some other benefits have also been identified of relationship marketing as compared to others. Some advanatges that retailers can take by focusing on relationship marketing include: time saving, increase customers’ retention, increase sales, protcet brand from poor image, increase trust, helps companies in meeting their goals in an easier manner. Also organisatiocan go with the future activities in which they can proceed to take the feedbacks from their loyal customers so it will be beneficial for designing the product to meet the demands of the customer. Overall, it can be said that relationship marketing has number of advantages and retailers can regain their image in the market by increasing customers’ experience.
CONCLUSION It is illustrated from the above study that for completing the research study it is required for the researcher to arrange all the data. for Achieving the good outcomes of the research all data required in an arrangement to carried out the relevant study. From above it discussed the aim and objectives of the research it also includes the research finding and methodology, which describes the methods in which all the description about the research have been discussed. It mainly describes about the relationship marketing strategy for the organization which they can used in order to develop the loyal customer base. RECOMMENDATION In order to complete the research in effective manner, research analyst can do better to use technological tools to complete their study in effectual manner. by using the relationship marketing businesses can effectively follow the success path. If company do not have the potential customer, then it will be difficult for them to hold good position in the market. By implementing the relationship marketing organizations will be able to Enhance their customer experiences within their product and services. it gives them benefit in order to increase their revenues. It will help to promote the two-way communication with the customers, It can be good approach if organization ask for the feedbacks from their customer so that it will give the sort of information to them and helpful in designing the new strategies. Relationship marketing enables the organization to develop the referrals for qualified leads, as if company have the loyal customer than it will be beneficial as the customer can also recommend their family and friends which is kind of good marketing for the organizational business (Adiyanto, 2021). It also provides the better engagement with the customer in order to understand their demands and requirement, so that to provide them product and services accordingly to fulfill all their needs. Thisprocessalsohelpstodevelopthenewideasforthebusinesses,bytaking recommendation from the customer, which is beneficial in order to prepare the further strategies, also enable the businesses to expand their business for achieving their successive goals.
Organization can also proceed to use the various social media tool in order to engage with the customer, they can begin to use the social media influencer in order to attract the customer toward their product and services. For an organization it is mandatory for them to provide the services which wins the trust of the customer, so that they show faith in company’s services and product in order to make purchase, with the help of this strategy this can be done effectively. Hence by implementing this strategy will give the major and various benefits to the organizational businesses, they can be able to develop the loyal customer base, which is better in order to earn revenues, or to drive the positive energy in their business functionality (Guillet, and Shi, 2019).
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REFERENCES Books and journals Adiyanto, N., 2021. Customer Relationship Management (CRM) Based On Web To Improve The Performance Of The Company.IAIC Transactions on Sustainable Digital Innovation (ITSDI) The 1st Edition Vol. 1 No. 1 October 2019, p.32. Al-Fedaghi, S. and Al-Otaibi, M., 2019, March. Service-oriented systems as a thining machine: A case study of customer relationship management. In2019 IEEE 2nd International Conference on Information and Computer Technologies (ICICT)(pp. 235-242). IEEE. Ali, F., Kim, W.G., Li, J. and Jeon, H.M., 2018. Make it delightful: Customers' experience, satisfaction and loyalty in Malaysian theme parks.Journal of destination marketing & management,7, pp.1-11. Amoako, G.K., 2019. Relationship marketing, orientation, brand equity and firm value: The mediatingroleofcustomervalue—Anemergingmarketperspective.Journalof Relationship Marketing.18(4). pp.280-308. Guillet,B.D.andShi,X.,2019.Canrevenuemanagementbeintegratedwithcustomer relationshipmanagement?.InternationalJournalofContemporaryHospitality Management. Gupta, A., Mishra, V. and Tandon, A., 2020. Assessment of Shopping Mall Customers’ Experience through Criteria of Attractiveness in Tier-II and Tier-III Cities of India: An Exploratory Study.American Business Review,23(1), p.6. Khan, R.U. and et.al 2020. The Impact of Customer Relationship Management and Company Reputation on Customer Loyalty: The Mediating Role of Customer Satisfaction.Journal of Relationship Marketing, pp.1-27. Lian, S.B. and Yoong, L.C., 2017. The effectiveness of strategic relationship marketing: exploringrelationshipqualitytowardscustomerloyalty.InternationalBusiness Research.10(12). pp.159-166. Putra, I.W.J.A. and Putri, D.P., 2019. The mediating role of relationship marketing between service quality and customer loyalty.Journal of Relationship Marketing.18(3). pp.233- 245. Sánchez-Casado, N., Artal-Tur, A. and Tomaseti-Solano, E., 2019. Social Media, Customers' Experience, and Hotel Loyalty Programs.Tourism Analysis,24(1), pp.27-41. Zhang, Z. and Dai, Y., 2019. Combination classification method for customer relationship management.Asia Pacific Journal of Marketing and Logistics. 1