Role of Customer Experience in Customer Loyalty

Running head: ROLE OF CUSTOMER EXPERIENCE IN CUSTOMER LOYALTY
ROLE OF CUSTOMER EXPERIENCE IN CUSTOMER LOYALTY
Name of the student
Name of the university
Author note

ROLE OF CUSTOMER EXPERIENCE IN CUSTOMER LOYALTY
1
Answer to question 4
Organizations take the initiative of improving the experience of the customers through
improving the value propositions. The improvements in the customer experience is undertaken
by the organizations with the purpose of retaining the loyalty and commitment of the customers
towards the brand. In this connection, Marco and Cristina (2018) reflected that positive brand
experience among the customers assist an organization in increasing the sales volume while
retaining the commitment and trust over the propositions. Customer loyalty might be taken as a
variable function that is specifically based on the buying behavior of the segments.
According to Srivastava (2018), the changing market environment and the intensification
of competition among the organizations are specifically related to the enhancement of the
customer experience. Moreover, in a research Stein and Ramaseshan (2019) observed that the
organizations aiming to improve the experience of the customers, based on their needs,
encounters an improved retention of the return customers. There are several factors that
encourages the improvement of the customer experience like quality of the proposition, utility or
value, cost of the proposition and support services provided by an organization.
The customers are specifically driven towards a brand that excels in the factors while
developing a perception on the value proposed by the business. According to Wijaya (2017), the
improved experience of the customers through the value propositions that are made by the
organizations encourages trust. Falsification and fraudulent activities pursued by organizations
through advertisements might boost the sales volume but in the long run loses the trust and
confidence of the customers. However, Thakur (2019) opined that in markets where most of the
companies provide the customers with similar propositions might encounter a paradox situation

ROLE OF CUSTOMER EXPERIENCE IN CUSTOMER LOYALTY
2
where the loyalty of the customers might switch between the competing organizations. The
improvements made by the organizations in these homogenous markets might not affect the
loyalty of the customers, due to lower switching costs. In this connection, the organizations take
the initiative of diversifying the propositions with the purpose of gaining a competitive edge
while retaining the commitment and loyalty of the customers.
According to Thakur (2019), the experience based marketing strategies that are often
undertaken by the organizations aim towards gaining a larger attention of the customers while
influencing their loyalty towards the same. In this connection, the perception of the customers is
the major factor that influence loyalty among the same. For an example, a customer having
negative perception, full of biases, towards an organization focused on providing with positive
experience might be considered as an exception to the real situation influencing customer
loyalty. However, apart from the paradoxes, the utility and value provided by the organization
specifically empowers a customer to build loyalty and trust towards the brand. It has been
observed from the research conducted by Srivastava (2018) that customer loyalty is specifically
reliant on the value of the proposition that is being delivered by an organization. The
organizations take the initiative of utilizing technological reforms with the purpose of improving
the experience of the customers while retaining the returning customers through improved
loyalty.
Moreover, Stein and Ramaseshan (2019) reflected that customer experience is
specifically reliant on the strategies that are implemented by organizations to adhere to the
changing needs of the end users. The development of propositions that would adhere to the
changing needs of the customers and the service propositions made by the businesses specifically
encourages the trust and loyalty among the customers while operating in a globalized scenario.