Improving Customer Retention Strategies for Al Tayer Beauty

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This assignment examines strategies for enhancing customer retention at Al Tayer Beauty, a Middle Eastern retail organization specializing in beauty products. The analysis delves into leveraging digital marketing, implementing competitive pricing strategies through backward integration, and developing effective loyalty programs to attract and retain customers. The document emphasizes the importance of understanding consumer needs, segmenting target audiences, and utilizing data-driven insights to optimize retention efforts.
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Running head: RESEARCH METHODOLOGY
Research methodology
Name of the student
Name of the university
Author note
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1RESEARCH METHODOLOGY
Chapter 4
4.0 Findings and Analysis
This chapter of the study will evaluate the raw data collected to form meaningful results.
The report will aim to establish the relationship between customer retention and business
performance. In this study, quantitative analysis is the basis of developing relevant findings. The
study has used Ms Excel as the statistical tool to identify the relationship between the variables.
There are two sets of quantitative data, one is addressed to the employees in Al Tayer Beauty in
United Arab Emirates and the second set of questions is addressed to the consumers of the firm.
4.1 Quantitative questions to the employees
1. Customer retention is the main pillar of business firms' growth and development
Answer Choices Responses
Yes 95.74% 45
No 4.26% 2
Answered 47
Table 1:
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2RESEARCH METHODOLOGY
Graph 1:
Findings
This question addresses the question which highlights whether the growth and
development of the organization is dependent on customer retention. The result of the research
shows that 95.74% of the respondents have agreed to the research question and the remaining
have not agreed to the research question. Therefore, it is quite clear that the respondents strongly
feel that Al Tayer Beauty can grow by retaining their existing consumers in the market.
Therefore, the organization should focus on these basic factors to increase their level of growth.
2. Does your organization have a customer service department that handles customers
concern?
Answer Choices Responses
Yes 80.85% 38
No 19.15% 9
Answered 47
Table 2:
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3RESEARCH METHODOLOGY
Graph 2:
Findings
This question highlights the fact which will identify whether the organization has a
customer department for handling the organizational grievances or not. The result of the research
shows that 80.85% of the respondents have agreed to the research question and the remaining
have not agreed to the research question. This means that Al Tayer Beauty has a consumer
grievance department to solve customers and other issues faced by them. The experiences of the
consumers are dependent on this department and therefore, the organization will have to focus on
improving the efficiency of this department to increase their consumer base.
3. A sustainable business begins and ends with increasing customer retention trend
Answer Choices Responses
Strongly agree 55.32% 26
Agree 36.17% 17
Neither agree nor disagree 8.51% 4
Disagree 0.00% 0
Strongly disagree 0.00% 0
Answered 47
Table 3:
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Graph 3:
Findings
This question underlines the fact that whether business sustainability is starts and ends
with the trends in consumer retention. The result of the research shows that 55.32% of the
respondents have strongly agreed to the research question and they have been supported by
36.17% of the respondents. On the contrary, none of the respondents opposed this statement and
8.51% of the respondents are neutral to the research question. This indicates that customer
retention is one of the key criteria for maintaining the organizational sustainability. Therefore, it
is essential for the organization to come up with innovative ideas which will increase the loyalty
of the consumers. Therefore, the organization will have to keep on making improvements in their
loyalty programs for securing their long term sustainability in the organization.
4. Customer retention curve determines companies' market share, revenue and profitability
growth
Answer Choices Responses
Strongly agree 36.17% 17
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5RESEARCH METHODOLOGY
Agree 57.45% 27
Neither agree nor disagree 6.38% 3
Disagree 0.00% 0
Strongly disagree 0.00% 0
Answered 47
Table 4:
Graph 4:
Findings
This question depicts the fact that whether customer retention curves determines
companies' market share, revenue and profitability growth. The result of the research shows that
36.17% of the respondents have strongly agreed to the research question and they have been
supported by 57.45% of the respondents. On the contrary, none of the respondents opposed this
statement and 6.38 % of the respondents are neutral to the research question. Therefore, the
retention capability of the organization will determine their growth in terms of their market
share, profitability and revenue. Therefore, development excellent experience for te consumers
is one of the crucial factor for the success of Al Tayer Beauty. The retail industry is highly
competitive with immense with new technological advancements. The organization will have to
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6RESEARCH METHODOLOGY
focus on the customer experience map which will take into consideration the overall experience
of the consumers starting from before making the purchase till post purchase experience.
5. How do you think customer retention impact organizations profitability and market share
growth?
Answer Choices Responses
Positive or negative Word of mouth 68.09% 32
Pushing companies to invest more 14.89% 7
Uncertainty of customer marketing trends 12.77% 6
Lack of integrity in the company products or orientations 2.13% 1
The impact of external factors, which can cause a boycott of
companies (politic as an example )
2.13% 1
Answered 47
Table 5:
Graph 5:
Findings
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7RESEARCH METHODOLOGY
This question aims to identify the impact of customer retention on the organizational
profitability and market share growth. The result of the findings show that 68.09% of the
respondents feel that negative and positive word of mouth will have an impact on the market
share and profitability of the organization. The investment will also have a definite impact on the
market share and profitability as observed from the response. However, according to the
respondents the impact of investment on customer retention is 14.89% and the impact of
uncertain city in the consumer market trends is 12.77%. On the other hand, the other factors such
as product integrity and external factors have minor impacts on market growth and profitability
of the organization. Therefore, consumer experience will directly affect the first three factors
which indicate that all these factors are linked together. Customer experience will affect the
loyalty of the consumers which in turn will affect the market share and profitability of the
organizations.
6. Loyal customers are costing companies less investments and more revenues
Answer Choices Responses
Strongly agree 42.55% 20
Agree 46.81% 22
Neither agree nor disagree 2.13% 1
Disagree 8.51% 4
Strongly disagree 0.00% 0
Answered 47
Table 6:
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Graph 6:
Findings
This question aims to identify whether the loyal consumers are costing less investments
and more revenues. The result of the findings shows that 42.55% of the respondents opinionated
that loyal consumers cost less investments and higher revenue generation. Similarly, 46.81%
have agreed to the first set of respondents. On the contrary, only 8.51% of the respondents have
disagreed to the research question and 2.13% are indifferent to the question. This indicates that
the organization has to spend less time and capital on the existing loyal consumers and they will
generate more revenue generation as cost of marketing for the loyal consumers is minimal.
Therefore, the organization will have to focus on acquiring new consumers as well as focus on
retaining the existing consumers by providing them with quality product and services.
7. Customers orientation might change organizations believes, Strategies and visions
Answer Choices Responses
True 93.62% 44
False 6.38% 3
Answered 47
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Table 7:
Graph 7:
Findings
This question will highlight whether the customers orientation changes organizations
believes, strategies and visions. The result of the findings shows that 93.62% of the respondents
have to the research question while the remaining has not. The consumers’ needs and buying
behaviours are changing rapidly so the companies have to constantly adapt to the changing need
in the market. Therefore, there are plenty of organizations that might change or modify their
existing beliefs, strategies and visions. Moreover, Al Tayer Beauty may have to change their
strategies and visions in order to compete with the other rival companies in the market.
8. Does online business affect customer’s loyalty?
Answer Choices Responses
Yes 70.21% 33
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No 29.79% 14
Answered 47
Table 8:
Graph 8:
Findings
The question will depict the impact of online business on the loyalty of the consumers.
The findings of the study shows that majority of the respondents have agreed with the research
question. The launching of the web 2.0 has improved the connectivity on the online platform and
ecommerce is one of the fastest growing markets. Therefore, use of online platform in the retail
industry is one of the key ways of providing the consumers with excellent consumers’
experience. Therefore, it is essential for Al Tayer Beauty have to focus on providing the
consumers with best possible experience at every touch point. Online platform is the most crucial
way of retaining the existing consumers and gaining new consumers.
9. Does Limited customers' retention reflect in market share and profitability growth?
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Answer Choices Responses
Strongly agree 25.53% 12
Agree 59.57% 28
Neither agree nor disagree 10.64% 5
Disagree 4.26% 2
Strongly disagree 0.00% 0
Answered 47
Table 9:
Graph 9:
Findings
This question aims to identify whether “Limited customers” retention reflect in market
share and profitability growth. The result of the findings shows that 25.53% of the respondents
opinionated that “Limited customers” retention reflect in market share and profitability growth.
Similarly, 59.57% have agreed to the first set of respondents. On the contrary, only 4.26 % of the
respondents have disagreed to the research question and 10.64% are indifferent to the question.
Therefore, the majority of the respondents show that the growth, profitability and market share
are reflected by the limited consumers in the market. Al Tayer Beauty customer data will reflect
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that the loyal consumers purchasing frequency is much higher than the normal consumers in the
market.
4.2 Quantitative questions to the consumers
10. What is the main determinant of your shopping destination?
Answer Choices Responses
Location nearby 16.67% 12
The degree of destination fame 6.94% 5
Products availability 48.61% 35
Price position 27.78% 20
Answered 72
Table 10
Graph 10
Findings
This question will identify the shopping determinant of the target consumers. The
findings of the study show that 16.67% respondents think that location of the shopping
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destination is a deciding factor, 6.94% think that the fame of the destination is a deciding factor,
48.61% think that product availability is a key determinant and 27.78% think that price position
is a key determinant. However, it can be seen that price and product have got the majority of the
response which indicates that majority thinks that product variety and price will strongly
determine the consumer choice. However, location of the physical store could also be an
important determinant but its priority is less than the other two factors.
11. What is the main motif that influences your shopping experience?
Answer Choices Responses
Product Quality 44.44% 32
Offers availability 31.94% 23
Staff recommendation 4.17% 3
Price range 19.44% 14
Answered 72
Table 11
Graph 11
Findings
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This question will address the fact that which motif will affect the shopping experience of
the consumers. The factor that influences the buying behavior of the consumers is product
quality and 45% of the respondents have stated this fact. The regular offers provided by the
organization is also a factor which will affect the shopping experience as 32% of the respondents
are attracted by it. The third factor which influences the consumers are price range where 19% of
the respondents have chosen this as the key criteria for impacting the shopping experience. On
the contrary, staff recommendation is the least influencer of shopping experience. This indicates
that the organization should focus on pricing, offers and product quality to increase their
consumer base and market share. Al Tayer Beauty will have focus maintaining the quality of
their products, offer competitive prices and discounts and other offers to lure more consumers.
However, this will only increase the short-term sales of the organization and they will have to
constantly use innovative ideas to keep high quality products, affordable prices (value for
money) and discounts and other benefits.
12. You build your shopping destination based on
Answer Choices Responses
Advertising and visibility 26.39% 19
Service and direct experience 66.67% 48
Other 6.94% 5
Answered 72
Table 12
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Graph 12
Findings
This question addresses the factor responsible for choosing the shopping destination for
the customers. The findings of the study show that service and direct experience is one of the
major drivers of choosing the shopping destinations and 66.67% of the respondents have chosen
this option. The next sets of respondents have chosen advertising and visibility as their key driver
and this constitutes 26.39% of the respondents. This shows that customer experience is one of
the key factors and providing satisfying service quality will create loyal consumer based for the
organization. Therefore, they will have to make sure that they provide best possible experience
for the consumers by directly interacting with them and helping to buy products that would suit
their needs.
13. Does word of mouth influence your ability to decide your shopping destination?
Answer Choices Responses
Strongly agree 30.56% 22
Agree 48.61% 35
Neither agree nor disagree 18.06% 13
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Disagree 2.78% 2
Strongly disagree 0.00% 0
Answered 72
Table 13
Graph 13
Findings
This question aims to identify whether word of mouth affects the choice of shopping
destination. The result of the findings shows that 30.56% of the respondents opinionated that
word of mouth affects the choice of shopping destination. Similarly, 48.61% have agreed to the
first set of respondents. On the contrary, only 2.78 % of the respondents have disagreed to the
research question and 18.06% are indifferent to the question. Therefore, the organisation will
have to focus on providing best products at best quality service and strengthen their social media
interaction which will increase marketing through word of mouth.
.
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14. Will your loyalty be decreased if you encounter an unpleasant experience in your preferred
shopping destination?
Answer Choices Responses
Definitely would 56.94% 41
Probably would 41.67% 30
Probably would not 1.39% 1
Definitely would not 0.00% 0
Answered 72
Table 14
Graph 14
Findings
This question aims to identify whether loyalty will be decreased if the consumer
encounters an unpleasant experience in their preferred shopping destination. The result of the
findings shows that 56.94% of the respondents think that such unpleasant encounter will
definitely decrease their loyalty even though it is their preferred shopping destination. Similarly,
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41.67 % have agreed to the majority of the respondents in the study. On the contrary, only 1.39%
of the respondents have disagreed to the research questions as their loyalty will not be affected
by unpleasant encounters that much. Therefore, the organization will have to emphasize on
avoiding such events and keep a track of the consumers grievances and solve them immediately.
15. Will your loyalty to the service provider increase should you be contacted to provide your
feedback?
Answer Choices Responses
Definitely would 30.56% 22
Probably would 58.33% 42
Probably would not 6.94% 5
Definitely would not 4.17% 3
Answered 72
Table 15
Graph 15
Findings
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This question aims to the fact that whether consumer loyalty increases if they are asked
for feedbacks. The result of the findings shows that 30.56 % of the respondents think that
consumer loyalty increases if they are asked for feedbacks. Similarly, 58.33 % have agreed to the
majority of the respondents that consumer loyalty increases if they are given importance and
valued by the organizations. On the contrary, 6.94% and 4.17% think that their loyalty will not
be affected if they asked for feedbacks. However, the majority of the respondents’ loyalty are
affected by this factor and the organization should take regular feedbacks from the loyal
consumers to identify the changes required for providing them with better service.
16. Do loyalty programs benefits impact your loyalty decision without considering the
customer service quality?
Answer Choices Responses
Yes 40.28% 29
No 59.72% 43
Answered 72
Table 16
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Findings
The question will address the fact that whether loyalty programs benefits impact your
loyalty decision without considering the customer service quality. The majority of the
respondents have given a negative response which constitutes 59.72% of the total population.
Therefore, this indicates that consumer service quality is a key factor in consumer loyalty
programs as the purpose of using the loyalty programs is to provide the loyal consumers with
better service and benefits for their association with the organization.
17. Do you think the customer service provided in general meets the expectations of
customers?
Answer Choices Responses
Yes 55.56% 40
No 44.44% 32
Answered 72
Table 17
Graph 17
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18. During a service failure, your action will be to complain through
Answer Choices Responses
Survey 12.50% 9
Mail 23.61% 17
Interact with a floor/duty manager 58.33% 42
Ignore 5.56% 4
Answered 72
Table 18
Graph 18
Findings
This question identifies the medium used by the consumers during a service failure. The
findings of the study show that interacting with the floor manager is the most convenient way for
the consumers to lodge a complain and 58.33% have agreed to this fact whereas 12.50% and
23.61% states that mail and surveys are the convenient medium for lodging complaints for them.
Therefore, the organization will have to focus on both the direct communication and online
mediums so that they immediately solve the service failure issues.
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19. Are you loyal to
Answer Choices Responses
Online shopping 9.72% 7
Store shopping 88.89% 64
Other (please specify) 1.39% 1
Answered 72
Table 19
Graph 19
Findings
This checks the loyalty of the consumers to different platforms and the findings of the
study shows that majority of the respondents are still loyal towards physical stores which
constitute 88.89% of the respondents. Therefore, the organization will have to promote their
physical stores in an effective way to gain more consumers. Even though, online shopping
medium is more popular in the current market the consumers are preferring store shopping which
signifies that the organization should develop better online platform which would be able to
provide the consumers with better experience at every touch point.
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Regression analysis
SUMMARY
OUTPUT
Regression Statistics
Multiple R
0.9994
23322
R Square
0.9988
46976
Adjusted R
Square
0.9984
62634
Standard
Error
0.0090
89068
Observations 5
ANOVA
df SS MS F
Signific
ance F
Regression 1
0.21469
425
0.2146
9425
2598.8
53192
1.66225
E-05
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Residual 3
0.00024
7833
8.2611
1E-05
Total 4
0.21494
2084
Coeffici
ents
Standar
d Error t Stat
P-
value
Lower
95%
Upper
95%
Lower
95.0%
Upper
95.0%
Intercept
-
0.0044
65778
0.00571
0399
-
0.7820
43029
0.4912
36237
-
0.02263
8815
0.0137
0726
-
0.0226
38815
0.0137
0726
X Variable 1
1.0222
94811
0.02005
3274
50.978
94852
1.6622
5E-05
0.95847
6344
1.0861
13278
0.9584
76344
1.0861
13278
0 10 20 30 40 50 60 70 80 90 100
0
0.1
0.2
0.3
0.4
0.5
0.6
Normal Probability Plot
Sample Percentile
Y
Graph 20
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0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
f(x) = 0.977063528785733 x + 0.00459396090952013
R² = 0.998846975682911
Regression analysis
Customer retention
Business Performance
Graph 21
Regression analysis is used to identify the relationship between the independent variable
customer retention and the dependent variable business performance. Regression analysis
develops the relationship based on the nature and degree of relationship between both the
variables. The different types of regression analysis are linear regression, multilinear regression
and logistic regression. However, in this study as there are two variables, linear regression has
been used to determine the relationship. Multiple R is the coefficient of correlation which
determines the correlation between both the variables. The value of Multiple R is ranges between
-1 to 1 where negative value indicates negative correlation, positive value indicates positive
correlation and zero indicates no correlation between the variables. In this present study, the
value of Multiple R is 0.999423322, which is almost 1 and this signifies perfectly positive
correlation between the variables. Moreover, it also signifies that the goodness of fit of the model
is high and majority of the data will fall within the regression line.
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R2 is the coefficient of determination which signifies the explaining capability of the
independent variable of the dependent variable. In this current study, the value of R² is 0.9988
which means that the independent variable is able to explain 99.88% of the dependent variable.
This means that customer retention can completely explain the characteristics of the dependent
variable. However, there is variability due to randomness of data which is quite common in
practical research studies.
The regression is used to establish the relationship between the independent and the
dependent variable. The regression equation is this present study is y = 0.9771x + 0.0046, where
if the value of x is put as 1 unit, the value of y is 0.9817. This shows that with 1unit increase in
the value of x there is 0.98 unit increase in the value of y. This provides the clear evidence that
there is perfect positive relationship between customer retention and business performance. The
F value for the regression analysis is 1.66225E-05 which is less than 0.05 and the F- value is
significant at a value less than 0.05. Therefore, the regression model is significant which shows
that customer retention will positively impact the business performance.
The two set of respondents have been used to compare whether the opinion of the
employees and the consumers match or not. The result shows that the consumers and the
employees have similar opinion and Al Tayer Beauty will have focus on retaining their existing
customers to increase their market share and revenue to develop private labeled products so that
to provide the consumers with high quality products at cheaper prices.
Summary
Thus, it can be summarized that customer retention is one of the key aspect of improving
the performance of the organization. The majority of the employees have agreed that by focusing
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on retaining the existing loyal consumers, they will be able to reduce their operational cost. The
existing consumers are already aware of the brand and their products. Therefore, the organization
does not have to spend on marketing to make these consumers aware of the different products of
the organization. However, as the level of competition is intense in the market different
companies try to acquire new consumers and target segment of the rival companies always
overlap. Therefore, it is essential to provide the existing loyal consumers with benefits which
would make them feel special. Moreover, the regular loyal consumers are the constant source of
income for the organization so retaining the existing consumers is one of the ways of increasing
the share in the market.
Therefore, the organization will have to ensure on developing an effectively customer
service department which will enable them to provide the consumers with excellent quality of
service. The finding show that organization will have to focus on the overall experience of the
consumers. Al Tayer Beauty will have to analyze the customer experience map and use
relationship management strategies to develop a bond with heir consumers. This would also
include maintaining a transparency on the social media platform and interact with the consumers
at all levels. Al Tayer Beauty will focus on evaluating the customer experience at each level
which will consist of identifying the experiences starting from before making the purchase to
post purchase.
Globalization has changed the modern business scenario and the needs and wants of the
consumers are changing at all times. Therefore, the organization will have to be flexible in
adapting to the changes in the market. Al Tayer Beauty will have to change their beliefs,
strategies and vision if necessary according to the changing the market scenario. The
organization should be ready to take such measures which would be essential for providing them
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with competitive advantage and increase in market share. The use of online platform is one of
the key components for providing the consumers with the best possible experiences. The
presence of consumers on the online platform is much more than in the physical stores. Al Tayer
Beauty will have to improve their online shopping websites to provide them with same level of
service as that of in the physical stores. This will consist of providing the consumers with
effective service at each touch point.
This will consist of delivering value to the consumers which will improve repeat visitors,
increased foot traffic, successful financial return and deeper consumer engagement. The loyalty
program should be developed around the mission and vision of the organization. The rewards
and system provided to the consumers should have value from the point of view of the
consumers. Loyalty card is one such program which can be used by the organization and it will
consist of providing the consumers with points for making the purchase. The accumulated points
are redeemable and the consumers can choose from different prize options from prices to select
one prize that will have more value for the consumers. The first step for the organization is to
increase the foot fall and when the foot fall increases the organization will have to focus n
increasing the repeat purchasing of the consumers.
Customer engagement is also a factor which will increase the sales volumes and the
organization will have to focus on the basket size of the consumers. The use of promotion and
offers are effective way of increasing the basket size where the offers are able to increase the
basket size. The mobile app is also an important factor for improving the engagement of the
consumers where the consumers can use the app to keep track of the different offers and
promotion. Therefore, the consumers will always evaluate and weigh their investment and the
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return they are getting from the organization. The consumers will have to be engaged across all
the channels which will include email, social media and SMS.
The survey showed that majority of the consumers prefer to shop using the physical
stores which shows that organization has not been able to grab hold of the consumers that prefer
to use online platform for their purchase. The organization will have to identify the return on
investment of these programs by identify the revenue generated and success of the programs. Al
Tayer Beauty will have to divide the consumers in different categories based on their needs and
then loyalty programs will have to be developed based on these needs.
The findings of the study shows that there is similar opinion between the consumers and
the employees where enhancing their experience of shopping are one of the key criteria of repeat
purchase. Al Tayer Beauty will have to focus on their existing consumers and new consumers to
improve their share in the market.
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5.0 Conclusion
This chapter of the study will link the objective of the study to the research question to
develop necessary conclusion.
Objective 1: To acquire greater share in the competitive market of United Arab Emirates
The result from the study suggest that in order to increase their market share, Al Tayer
Beauty will have to focus on retaining their existing consumers by providing them with good
quality products at affordable prices. Along with that the organization will have to use loyalty
programs such discounts and loyalty cards which will enable the customers to avail extra
benefits. The organization should make improvements on their online platform by using digital
marketing. This will consist of search engine optimization, search engine marketing and social
media sites. These can very help in increasing the market share as there are large number of
consumers on the online platform which the organization has not been able to influence. The
market in UAE is highly competitive and saturated so customer retention is a key factor for
sustainability and competitive advantage. The result provides the clear evidence that there is
perfect positive relationship between customer retention and business performance. The F value
for the regression analysis is 1.66225E-05 which is less than 0.05 and the F- value is significant
at a value less than 0.05. Therefore, the regression model is significant which shows that
customer retention will positively impact the business performance. Therefore, the organization
will initially focus on retaining the existing customer but they will have to acquire new
consumers by using competitive pricing and marketing strategies.
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Objective 2: To introduce loyalty programs like Loyalty cards, Loyalty Bonus for the
customers
The organization will have to incorporate loyalty programs such as loyalty cards and
loyalty bonuses which will retain the existing customers. This will also in word of mouth as the
existing customers will provide positive feedback to their friends, family and acquaintances. The
loyalty card program should consist of benefits which will enable them to add points to their
wallet whenever they make the purchase and they can redeem the value with gifts and discounts.
Loyalty bonuses are also similar schemes where the consumers will be given offers and prizes
applicable only to special loyal consumers. This is a very effective way of increasing the share,
profitability and revenue. Offering promotional gifts can be a good way of attracting customers.
It is set to a minimum value of purchase making which customers will be able to get the
promotional gifts as decided by the management also to offer gifts on some selected occasions
such as Christmas or Thanksgiving. The organization will have to analyze the competitors in the
market and their customer retention strategies in order to develop their own set of loyalty
programs that will have more to the consumers. As the level of competition has intensified with
rapid growth in the market and the free trade has caused the international giants the opportunity
to enter the market so it is essential to build string consumer base for maintaining sustainability.
Objective 3: To achieve large scale profit margin by cutting down on the unnecessary products
and services and segmenting the target audience
The profit of the organization can be increased by two ways, either by increasing their
sales and reducing their operational cost. The organization will have to use big data analysis to
identify the products that are popular and non-popular. These will enable the organization to
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remove such products which are not making any sales and unnecessarily using up the shelf-
space. These spaces can be used for other products which are popular and the organization will
be able to maintain their inventory in a better way if they are aware of the consumer demands
and needs. The organization will also use backward integration to develop private labeled
products so that to provide the consumers with high quality products at cheaper prices.
5.1 Recommendations
It is recommended that the organization should make use of digital marketing strategy to
attract the more and more consumers in the market. This will consist of involving consumers on
the social media websites such as Facebook, twitter and Instagram to make them aware of the
different discount offers and taking feedback from them about the different products and
services. This will enable to understand the success and failure of the strategies and the
organization will able to make changes to the strategies depending upon the feedback. Customer
engagement is the one of the most effective ways of increasing the involvement of the consumers
on the market. The organization will have to develop apps which will enable them to access the
company websites and product at all touch points. This is one of the major factors for improving
the overall experience of the consumers. Moreover, the organization will take surveys to identify
the most suitable medium of communication so that Al Tayer Beauty can focus on that medium
to improve the customer experience.
The organization will also have to focus on increasing the footfall in the physical stores
and improve engagement to maintain the footfall. These can only be achieved by creating value
for money and Al Tayer Beauty will have to use backward integration to develop products at
lower prices. This will enable them to use the competitive pricing strategy to provide similar
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products to the consumers at lesser prices than the other competitors in the market. Backward
integration will reduce the mediators in between which will reduce the overall cost of
production. This will reduce the operating margin of the organization and increase their overall
profit margin.
The organization will have to increase the repeat purchase by identifying the needs of the
consumers and categorizing them according to their needs. The organization will have to
introduce rewards which are highly lucrative and this can be done by forming strategic
partnership with renowned brands. Moreover, the organization should develop retail programs
consisting of multiple stages so that the consumers’ will have to make numerous purchases
before they can redeem their rewards. This will increase their repeat purchasing and foot falls in
the physical stores.
5.2 Future research and Limitation
In future research, this research can be used as a source of secondary data which can be
used by the other researchers to develop their own study. The method used in this study can be
used by other researchers to develop similar results and further elaborate on the impact of
consumer retention on the organizational performance. The study has focused on Al Tayer
Beauty and retail sector in Middle East and may not represent the scenario in other parts of the
world to different values, economic background and buying behavior of the consumers.
Moreover, the study has used mono method due to time constraint and cost constraint and further
studies can use mixed method to generate much more in depth analysis on consumer retention
and organizational performance.
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