You must respond with at least 250 words. Your replies must do the following:
Answer the question posed at the end of the thread.
Respond to the practical example in the thread by sharing a practical example that differs from the one in the thread.
Reference at least 1 scholarly source for each reply.
Note about Responses: Seek to understand your classmates' threads (including the marketing management theory, the facts presented in their posts, their points of view, and their real-world examples). Aim to communicate your own understanding of relevant facts, your values, and your perspective of the topic. References in APA.
BELOW IS MY CLASSMATE ANSWER.
What is Long Term Customer Loyalty and relationships?
This topic of marketing management is all about how to attract and retain customers. In a very real sense it is about having a large front door with a very small back door. Successful companies recognize that repeat business from loyal customers can potentially make up a large swath of their profits. Keller states that, "80 percent of profits comes from 20 percent of a customer base." There are many different strategies and methods that help create customer loyalty. Additionally, there are numerous metrics that help define customer loyalty. You have the customer value analysis which identify 5 major components of a business's interaction with customers. Those 5 areas are:
Identify the major attributes and benefits to the customer's value.
Assess the qualitative importance of the different attributes and benefits
Assess the companies and competitors performances on the different customer values against their rated importance.
Examine how customers in a specific segment rate the company's performance against a specific major competitor or an individual attribute or benefit basis.
Monitor Customers values over time.
In the end marketing is the art of attracting and keeping customers. There is a complex methodology surrounding calculating customer lifetime value. A methodology that seems to vary from person to person. There is also a marketing funnel that helps further shape how customers become loyal to a company.
2. Practical Application/ Example
One of my jobs is serving as a pastor in a local church. My church is small at the moment and my post there is fairly recent. Of the many books that I studied before landing in this position was "Sticky Church" by Larry Osborn. The entire concept of Sticky Church is centered on Long Term Customer Loyalty and Relationships. It is about having a large front door, (welcoming, inviting, etc.) but having a small back door (keeping people from leaving the church.) So when I begin to look at the dynamics of customer retention I view it through the lens of ministry and church growth. It is easy to wrap up too much on church growth models. It is however, one of the only truly measurable values relative to the church. So this begs the question how can churches retain members in a highly competitive market.
One of the best examples that comes to mind comes from a local little church. After visiting one Sunday morning you could tell the thought process and intention surrounding visitor retention. After the message we were invite to meet the pastor in his office. We had refreshments and a nice conversation. About an hour later we received a phone call very briefly from the pastor thanking us for our attendance. The next evening he personally showed up at our home with a jar of homemade jam. Later the night we received invitations to their social media groups and the next afternoon we received a letter from the pastor. 5 points of contact in the span of three days. For some that might be a turn off but personally for me it helped demonstrate how much they valued me. Companies working for a profit should be no different. They have to demonstrate to the customer that their business is invaluable to the success of the company and that they have the best product on the block.
3. Question for Discussion
What can small businesses do to attract a loyal customer base in the face of franchises and conglomerates?