Improving Customer Loyalty: A Relationship Marketing Study on Morrison

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This report examines the significance of relationship marketing in enhancing customer loyalty within the UK retail sector, focusing on Morrison, a major supermarket chain. The study aims to understand the concept of relationship marketing, assess its strategies for improving customer retention, and recommend approaches for building a loyal customer base. It reviews relevant literature, highlighting the importance of customer experience and networking as key strategies. The research employs a qualitative approach, utilizing secondary data and thematic analysis to explore the relationship between marketing strategies and customer loyalty. Findings indicate that prioritizing customer experience and loyalty programs can significantly increase customer retention and overall organizational productivity. The report concludes by recommending that Morrison leverage relationship marketing to enhance customer experiences, promote two-way communication, and engage with customers through various channels, including social media, to foster long-term loyalty and achieve business success. Desklib offers a wide range of study resources, including past papers and solved assignments, to support students in their academic endeavors.
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FY028 INQUIRY BASED
LEARNING
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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
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INTRODUCTION
Background of the study
Relationship management define as the process of the “Customer relationship
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.
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LITERATURE REVIEW
Theme 1 Meaning of the relationship marketing
According to the Lian 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 of Putra 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.
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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 that Morrison. 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.
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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
make them beneficial (Sánchez-Casado, Artal-Tur and Tomaseti-Solano, 2019). There is
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
organisatio can 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.
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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.
This process also helps to develop the new ideas for the businesses, by taking
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.
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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. In 2019 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
mediating role of customer value—An emerging market perspective. Journal of
Relationship Marketing. 18(4). pp.280-308.
Guillet, B.D. and Shi, X., 2019. Can revenue management be integrated with customer
relationship management?. International Journal of Contemporary Hospitality
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:
exploring relationship quality towards customer loyalty. International Business
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.
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