marketing 1

Customer Loyalty

Concept

            Customer loyalty is an area that is of high importance for an organization. This marketing management concept is a popular metric that is used to gauge the health of a business and/or brands (Marshall & Johnston, 2019). Loyalty amongst customers can determine the success of an organization and the business they experience on a daily basis. There are many factors that play into customer loyalty and make this concept so important, such as what drives loyalty to a brand, the benefits of customer loyalty, and examples of how customer loyalty can be built and maintained (Freedman, 2020). Customer loyalty to a brand is driven by dependability and the emotional connection between the consumer and the products and/or services that are provided by a company. Also, a strong social media presence can potentially sway loyalty from a customer towards a brand or an organization depending on what exactly is being marketed. The importance of customer loyalty is to enable retention by offering satisfaction to consumers based on services or products that are provided, as well as, turning a customer into a brand advocate (Freedman, 2020). There are benefits that come with customer loyalty.  These benefits will assist a company or brand in both the short and long term. Loyal customers can spread the word about a company and services that are provided via word-of-mouth or social media, which are both effective ways of receiving new clients or members. Not only does this bring in new customers, but the retention rate will also maintain a high percentage. Thus, loyal customers tend to answer any surveys that are provided when completing a purchase or responding to social media posts with positive feedback or communication about their experiences for others to read. Lastly, there are numerous ways to build and maintain customer loyalty. These methods include implementing a loyalty rewards program to show appreciation and reward those customers who utilize the services of a particular company multiple times within a week or month. Also, a high level of quality must be kept consistent due to the expectation that customers will have when returning to a place of business based on previous visits. Finally, the use of customer data that is gathered by surveys or feedback must be utilized in a way that strengthens the customer service that is provided whether that info is good or bad.

Application/Example

            There are many organizations that value customer loyalty and aim to prioritize this concept. An example would be H-E-B, which is a grocery company that is based in Texas. This grocery company ensures that all of its locations are precisely mapped out after researching the surrounding areas, competition, and potential clients. H-E-B gives its customers a sense of feeling at home with the “Made In Texas” slogan on its own brand items and around the store. This also includes their branded “Hill Country Fare” products and coffee blends, such as “San Antonio Blend” and “Houston Blend” (Dooley, 2020). Also, H-E-B markets their low-priced items well with weekly ads that highlight different promos that change each week and offers “free” items when purchasing another. These “free” items are accompanied by bright yellow coupons that are placed nearby those “free” items for customers to gather as they walk through numerous aisles. There are also free samples that are offered throughout the store for customers to try if they are hesitant about any items beforehand during their shopping walk around the store. H-E-B also offers a digital coupon app that will allow customers to clip coupons and use them when checking out. These coupons are both in-store, as well as special offers for those who utilize this app. The app will also inform a customer of the price of an item and which aisle it is located on if they search for it. Also, the downloadable app will allow customers to place curbside or delivery orders if in-store shopping is not an option. Lastly, there is a certificate code on each receipt that allows customers to complete a survey, which enters the customer into a drawing for a $100 H-E-B gift card and allows each store to receive feedback from that particular customer's shopping experience. These are several examples of how H-E-B has committed to customer loyalty.

Question for Classmates

            The question I would like to ask my classmates are: “With so many companies being focused on customer loyalty, which organization would you say kept that focus during COVID-19?”