Management consultancy and intervention
Management consultancy and intervention Introduction - Management consultancy and intervention There is no single definition…
Customer Satisfaction from Loyalty program
The main objective behind any loyalty program is to put barriers among their existing customers to switch from one company to other. Loyalty program helps company to create loyalty among two levels like economic level and emotional level. On economic level, loyalty program helps customers to get loyalty to the company by getting economic incentives whereas on emotional level, loyalty program influence emotions of the customers to become loyal to the company and its product and services. The below mentioned diagram shows that how marketing strategies have changed over a period of time to gain more and more loyalty among customers. From this below mentioned diagram we can see that the main objective behind any loyalty program is to develop brand relationship. Brand relationship can be defined as mutual exchange between company and customers to provide more and more benefits at one end and to strengthen brand image on the other hand Smith, (1998).
Today Customer Satisfaction plays a very important role in this competitive business environment. Today in order to be successful and competitive in the global market it is essential for company to not only to attract new customers but also to manage their existing customers with the help of effective marketing strategies like customer satisfaction and loyalty program. Gronoos, (1990) stated that customer satisfaction leads to loyal customers. Customer satisfaction is very important for the success of any organization. Valdani, (2009) stated that customers is the most important aspect of organization as the survival of organization depends on customers. Whereas, Shemwell et al, (1998) stated that satisfied customers’ helps organization to achieve sustainable advantages and also helps organization to deliver high quality of goods and services to the customers. The quality of services as well as customer satisfaction helps organization not only to achieve competitive advantage in the market but also helps them to achieve retention of its customers which is very important for the survival of the organization. Blanchard & Galloway, (1994) stated that satisfaction of customer is the result of customer perceived quality of services from its expectation form the quality of services. When customer perceived quality of services is equal to its expected quality of services, customer is said to be satisfied with the services. In order to achieve customer satisfaction it is important for organization to identify customers’ needs and wants and their expectation from company’s products and services to satisfy that needs and wants. Barsky & Nash, (2003) stated that companies that are able to understand customer needs and wants and are ready to satisfy them earns more profits than the companies that fail to identify customers needs and wants.
The cost of attracting new customers is more than the cost of retaining existing customers and therefore in order to be successful it is important for organization to focus on retaining their existing customers by satisfying their needs and wants. Even in hotel industry the cost of attracting new customers is more than retaining existing customers. Today the most challenging job in hotel industry is to retain existing customers by satisfying their needs and wants. Today customers in hotel industry demands for quality product and services