CUSTOMER LOYALTY, VALUE AND RETENTION IN BUSINESS

Customer loyalty to business sustainability should not be taken lightly. Research shows that loyal customers are more profitable than non-loyal customers .Indeed, this study found that leads generated that eventually turned into regular customers are more valuable than new customers. Retaining customers makes good business sense and costs less than attracting new ones. Negligible switching costs and the quest for value strain the loyalty and relationship between businesses and their primary customers. Therefore, we need to identify how the independent  variables of value (price, quality, service, convenience, and assortment) contribute to customer loyalty among customers in the retail business.  To excel in generating leads in the retail industry, few factors have to be considered and thoroughly evaluated. These are :

Data Research on Customer loyalty

The research design for this study was quantitative non-experimental. Data for the study was collected from an electronic email invite through Survey Monkey. With a confidence level of 95% and a margin of error of 5%, the targeted sample size was 384, with a final filtered total of 354  usable surveys. Multiple linear regression and Spearman rho correlation techniques were used to determine significance of data collected to customer loyalty. Results from this study indicate that quality has the greatest effect on customer loyalty. However, significant interaction and modifying effects were also detected, indicating that predictors of loyalty should not be examined in isolation. However 100% attention should be given to everyone regardless of their status. This article takes us to the next point to provide pocket friendly products that performs  up to 90% action in retaining customers. 

Pricing to Sustain Loyalty

Does price significantly contribute to loyalty among customers? The answer is absolutely yes. It  does contribute to loyalty; the significance of this question is that Price is a common metric customers utilize to rate quality, value, and service. Theories on value suggest customers justify the price paid for benefits received. Min (2010) indicated that low price alone does not represent a perception of value to customers and that, in addition to price, value perception includes service and quality. Min’s study sought to identify what causes  customers to cross-shop other retailers, which may negatively impact loyalty. Another point is to identify business strength and weakness by pointing out the major cause of market competition in retaining several customers.

Customer loyalty major problems

Market saturation within the retail establishments makes cross shopping easy for customers and increases the need for various establishments to offer the best value. Customers are value savvy and, while cross shopping, compare-shop prices; additionally, when related to quality, study indicates that customers link quality to customer service. Thus, some insights into how customers view service, quality, and value as close constructs. From a marketing perspective, price ranks high in the hierarchy of the four Ps: price, product, promotion, and placement. Ehmke, Fulton, and Lusk (2013), of Purdue University’s Agriculture Innovation and Commercialization Center, suggest that marketers often relate price to how much they will charge for a product or service based on the cost, competitive price comparison, like products, and customer demand. This is a problem often ignored but it has a huge impact in sales and customer retainability.

Possible solutions

Price and price management are critical aspects affecting retail business  profitability. Selling products too cheaply erodes profitability, while setting prices too high deters customers from purchasing altogether. store management practices benefit from utilizing category management data to assist in pricing decisions. These are the possible solutions that were not found to be 100% but might help.  

1:constant advertisement, 

2:frequent promotions, 

3:frequent price review, 

4:market survey, 

5:good sourcing, and many more. other fact https://go.inmarket.com/q4-2021-consumer-loyalty-report?utm_source=google&utm_ors that contributes to higher loyalty, including inventory issues, shipping delays, and more

Frequently Asked Questions

Q1. To what extent do the independent variables of value (price, quality, service, convenience, and assortment) have a significant contribution on loyalty of customers?  A1..customer service is affected by perceptions of good service, which is itself a correlate of the overall perception of the establishment by its customers. To conclude, all the 5 variables are very important to all businesses.

Q2. To what extent does a store’s atmosphere/environment have a significant contribution on loyalty of customers?

A2…customers rate an organization’s atmosphere higher when it is stimulating and attractive and that a business atmosphere affects customer loyalty. The atmosphere, relationship orientation, and  staff had the strongest association when customers rated overall experience. This indicates that store atmospheres that are less appealing to customers have to invest more in price, service, and quality to gain the same experience ratings.

Q3. To what extent does the quality and freshness of perishable foods contribute loyalty in the case of a grocery  store customer?

A3….Recent surveys conducted by Brown (2014) indicate that supermarket customers are placing more emphasis on the quality and freshness of perishable foods. Customers rate produce departments that are well stocked  with fresh fruits and vegetables and meat departments offering high quality meats as important when deciding a primary store.

Conclusion

The market sector is wide and maximum attention is required, making customers number one priority can never be over emphasized. Dealing with competitions from other establishments is challenging and constant innovation and diversification can lift the competition weight. The need to be committed to the community, customers and most importantly, Value , should be a top priority to every establishment, not just the retail sector.

Customer loyalty to business sustainability should not be taken lightly. Research shows that loyal customers are more profitable than non-loyal customers .Indeed, this study found that leads generated that eventually turned into regular customers are more valuable than new customers. Retaining customers makes good business sense and costs less than attracting new ones. Negligible switching…

Customer loyalty to business sustainability should not be taken lightly. Research shows that loyal customers are more profitable than non-loyal customers .Indeed, this study found that leads generated that eventually turned into regular customers are more valuable than new customers. Retaining customers makes good business sense and costs less than attracting new ones. Negligible switching…