Customer loyalty and customer loyalty programs

2003 ◽  
Vol 20 (4) ◽  
pp. 294-316 ◽  
Author(s):  
Mark D. Uncles ◽  
Grahame R. Dowling ◽  
Kathy Hammond
Keyword(s):  
Empirical Research ◽  
Customer Relationship Management ◽  
Customer Loyalty ◽  
Large Scale ◽  
Relationship Management ◽  
Customer Relationship ◽  
Loyalty Programs ◽  
Brand Commitment ◽  
Demand Side ◽  
Customer Loyalty Programs

Customer loyalty presents a paradox. Many see it as primarily an attitude‐based phenomenon that can be influenced significantly by customer relationship management initiatives such as the increasingly popular loyalty and affinity programs. However, empirical research shows that loyalty in competitive repeat‐purchase markets is shaped more by the passive acceptance of brands than by strongly‐held attitudes about them. From this perspective, the demand‐enhancing potential of loyalty programs is more limited than might be hoped. Reviews three different perspectives on loyalty, and relates these to a framework for understanding customer loyalty that encompasses customer brand commitment, customer brand acceptance and customer brand buying. Uses this framework to analyze the demand‐side potential of loyalty programs. Discusses where these programs might work and where they are unlikely to succeed on any large scale. Provides a checklist for marketers.

Temporal Orientation and Customer Loyalty Programs

2021 ◽  
pp. 193896552110084
Author(s):  
Flavia Hendler ◽  
Kathryn A. LaTour ◽  
June Cotte
Keyword(s):  
Customer Relationship Management ◽  
Customer Loyalty ◽  
Customer Relationship ◽  
Loyalty Programs ◽  
Temporal Orientation ◽  
Loyalty Program ◽  
Hospitality Managers ◽  
Customer Loyalty Programs ◽  
Depth Interviews

Loyalty programs play a prominent role in many firms’ customer relationship management programs, but not all programs are successful. Providers need to understand not only what benefits customers want in a program, but also how they want to be treated as a loyalty member. We posit that because loyalty programs offer rewards that are time-bound (immediate or delayed), and that loyalty programs seek to develop a relationship that extends over time, an important, but overlooked dimension for hospitality managers to consider is how their customers view time. Our research focuses on customers’ temporal orientation—the tendency to think in the present, future, or past. We use depth interviews to explore existing casino loyalty program participants’ thoughts and feelings about their ideal loyalty program. We find the customers’ temporal orientation influences the type of relationship as well as the type of benefits sought in the loyalty program. Our research offers managerially practical insights for identifying customers more likely to engage in co-production of a long-term loyalty relationship as well as for creating communication strategies that are likely to interest and provoke different temporal mindsets.

Customer relationship management

2016 ◽  
Vol 34 (3) ◽  
pp. 388-410 ◽  
Author(s):  
Suhail Ahmad Bhat ◽  
Mushtaq Ahmad Darzi
Keyword(s):  
Factor Analysis ◽  
Competitive Advantage ◽  
Customer Relationship Management ◽  
Customer Loyalty ◽  
Relationship Management ◽  
Retail Banking ◽  
Customer Relationship ◽  
Equation Modeling ◽  
Customer Knowledge ◽  
Content Type

Purpose – The purpose of this paper is to develop a comprehensive integrated model which helps in explaining the impact of Customer Relationship Management (CRM) dimensions (complaint resolution, customer knowledge, customer empowerment and customer orientation) on customer loyalty and competitive advantage of a bank. The study also explores the mediating role of customer loyalty in the relationship between CRM and competitive advantage in retail banking. Design/methodology/approach – The research is based on a theoretical model which consists of four CRM dimensions and two exogenous variables. These have been used for establishing the hypotheses to analyze relationships between the variables constituting the CRM model. The data have been collected from 278 customers of a private bank. The data were analyzed using structural equation modeling (SEM). The scale was developed and purified through factor analysis (exploratory and confirmatory factor analysis). SEM was then used to examine the causal relationships and “model fit” of the proposed model. Findings – The results provide evidence that the four CRM dimensions have a positive effect on customer loyalty and competitive advantage of the bank. Among the CRM dimensions, customer knowledge is most influential of all the dimensions. Furthermore, customer loyalty acts as the mediator in the CRM model between CRM and competitive advantage. Research limitations/implications – Since, the study involved a single bank and therefore the results should be generalized cautiously. Only four CRM variables were included in the study; additional variables can be introduced in further studies involving different contexts. Practical implications – The study highlights and supports the need for mangers to devote additional resources toward developing a better CRM system. Therefore, mangers need to think beyond the technological aspects and should focus on these four dimensions, especially customer knowledge, to enhance the loyalty and competitiveness. Originality/value – The paper investigated hitherto unexplored relationships between customer-centric CRM dimensions instrumental in providing competitive advantage to a bank through mediational analysis. Thus, it contributes to the information on the implementation of CRM practices valuable for banking sector.

The Customer Relationship Management as an Element of the Acceleration of Society Evolution

2014 ◽  
pp. 562-577
Author(s):  
Lova Mirella Rakotomalala Ramandimbiarison
Keyword(s):  
Information Technology ◽  
Relationship Marketing ◽  
Customer Relationship Management ◽  
Customer Loyalty ◽  
Relationship Management ◽  
Traditional Culture ◽  
Research Field ◽  
Customer Relationship ◽  
Societal Change ◽  
Technology And Communication

Globalization and the rapid advance of information technology and communication have led to the emergence of new trends like postmodernity and hypermodernity. Madagascar, a future emerging economy, chosen as the research field, has not been immune to these phenomena. It is integrated into the global cultural system, although it is known for its specific traditional culture. Therefore, this work has demonstrated how the chosen tool of relationship marketing, which is Customer Relationship Management (CRM), can be an element of accelerated societal change and how CRM can cause changes in the Malagasy culture. The research presented in this chapter examines the four major roles of CRM as used in Madagascar to determine whether it is suitable for Malagasy consumers. This study may help service marketers of international companies in using new marketing tools as innovative means in emerging economies and increase their customer loyalty.

The Customer Relationship Management as an Element of the Acceleration of Society Evolution

2013 ◽  
pp. 221-236
Author(s):  
Lova Mirella Rakotomalala Ramandimbiarison
Keyword(s):  
Information Technology ◽  
Relationship Marketing ◽  
Customer Relationship Management ◽  
Customer Loyalty ◽  
Relationship Management ◽  
Traditional Culture ◽  
Research Field ◽  
Customer Relationship ◽  
Societal Change ◽  
Technology And Communication

Globalization and the rapid advance of information technology and communication have led to the emergence of new trends like postmodernity and hypermodernity. Madagascar, a future emerging economy, chosen as the research field, has not been immune to these phenomena. It is integrated into the global cultural system, although it is known for its specific traditional culture. Therefore, this work has demonstrated how the chosen tool of relationship marketing, which is Customer Relationship Management (CRM), can be an element of accelerated societal change and how CRM can cause changes in the Malagasy culture. The research presented in this chapter examines the four major roles of CRM as used in Madagascar to determine whether it is suitable for Malagasy consumers. This study may help service marketers of international companies in using new marketing tools as innovative means in emerging economies and increase their customer loyalty.

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