This study focuses on aspects of customer loyalty in the business-to-consumer sector, which looks at the relationship between companies and end consumers. As a result, the loyalty of customers in the business-to-business sector, e.g. of companies to their suppliers, is neglected. Behavioural and social science approaches to explain customer loyalty are not part of this study.
The aim of the thesis is to present an overview of customer loyalty, instruments of customer loyalty, the most important terms relevant in connection with customer loyalty and practicable methods for controlling customer loyalty management. To this end, the necessity for customer loyalty is first explained and a definition of central terms is carried out. Subsequently, different goals and variants of customer loyalty are presented. In the further explanations, an overview of the most important customer loyalty instruments within the framework of the marketing dimensions is given, which is followed by a list of prerequisites and aspects to be considered when introducing a customer loyalty system. The work is rounded off by the presentation of the correlation between customer loyalty and customer satisfaction as well as the possibilities for controlling customer loyalty management, so that this study work can be regarded as a compact "guide" through the phenomenon of customer loyalty. [...]
Table of Contents
1. Preliminary remark
2. Importance of customer loyalty
3. Definitions of terms
3. 1. Customer loyalty
3. 2. Customer loyalty management
3. 3. Customer satisfaction
4. Goals of customer loyalty
5. Types of customer loyalty
5. 1. Situational binding
5. 2. Contractual commitment
5. 3. Economic ties
5. 4. Technical-Functional Bonding
5. 5. Psychological-Emotional Attachment
6. Instruments of customer loyalty
6. 1. Product policy measures
6. 1. 1. Services
6. 1. 1. 1. Secondary services
6. 1. 1. 2. Service-related-products
6. 1. 1. 3. Guarantees
6. 1. 2. Customer-specific service design
6. 2. Price policy measures
6. 2. 1. Discounts
6. 2. 2. Bonus programs
6. 2. 3. Customer card
6. 2. 4. Complementary products
6. 2. 5. Contracts and guarantees
6. 3. Communication policy measures
6. 3. 1. Complaint management
6. 3. 2. Customer Club
6. 4. Distribution policy measures
7. Requirements for the introduction of a customer loyalty management system
7. 1. Systems
7. 2. Structures
8. Strategic aspects of customer loyalty management
9. The relationship between customer satisfaction and customer loyalty
10. Control of customer loyalty management
10.1. Effectiveness of customer loyalty management
10. 1. 1. Objective measurement methods
10. 1. 2. Subjective measurement methods
10. 2. Efficiency of customer loyalty management
10. 2. 1. Customer gross margin calculation
10. 2. 2. Customer-oriented process cost accounting
10. 3. Portfolio Management
11. Conclusion
Objectives and Core Topics
This paper aims to provide a comprehensive overview of customer loyalty, including relevant definitions, strategic instruments, and practical methods for managing and controlling customer relationships in the business-to-consumer sector.
- Theoretical foundations of customer loyalty, satisfaction, and their interrelation.
- Taxonomy of customer loyalty types (e.g., contractual, economic, emotional).
- Marketing mix instruments for customer retention (Product, Price, Communication, Distribution).
- Operational and organizational requirements for implementing loyalty management systems.
- Methods for measuring and controlling the effectiveness and efficiency of loyalty programs.
Excerpt from the Book
6. 3. 1. Complaint management
Through the use of complaint management, an attempt is made to consolidate business relationships that are acutely endangered as a result of customer dissatisfaction by means of reparations and problem solutions. This includes the process of stimulating, receiving, processing, answering and evaluating complaints with regard to possibilities for improvement in the provision of services, as well as complaint management controlling.
The fundamental goals of complaint management include restoring customer satisfaction, minimizing negative impacts of customer dissatisfaction, and processing the information contained in complaints regarding the company's weaknesses and opportunities.
In order to explain the emergence of complaint satisfaction, a distinction must first be made between performance satisfaction and complaint satisfaction. The performance satisfaction corresponds to the customer satisfaction already discussed, but the subsequent complaint satisfaction refers to the company's reaction to a customer complaint. Derived from the confirmation/discount confirmation paradigm, the explanatory model is complaint satisfaction. The starting point is the customer's dissatisfaction with the service, which prompts him to complain. Here, too, the complainant has expectations regarding the company's response to the complaint, which he ultimately compares with the response actually perceived. However, customer expectations must be considered in a differentiated way. As shown in Figure 5, a distinction must be made between the desired response to a complaint and the acceptable response. The former describes how the company should react from the customer's point of view, the acceptable response to the complaint represents a response that is barely tolerated by the customer. There is a tolerance zone between the desired and the acceptable response to the complaint, in which neither complaint satisfaction nor dissatisfaction occurs, but indifference of the customer regarding the reaction of the company to his complaint.
Chapter Summary
1. Preliminary remark: Outlines the scope of the study, focusing on the business-to-consumer sector and defining the core goal of providing a "guide" to customer loyalty instruments.
2. Importance of customer loyalty: Explains the necessity of retention in saturated markets where customer acquisition is significantly costlier than maintenance.
3. Definitions of terms: Provides academic definitions for customer loyalty, loyalty management, and customer satisfaction based on the confirmation/disconfirmation paradigm.
4. Goals of customer loyalty: Details economic goals like risk minimization and growth, alongside psychographic goals such as enhanced brand image.
5. Types of customer loyalty: Classifies loyalty into situational, contractual, economic, technical-functional, and psychological-emotional aspects.
6. Instruments of customer loyalty: Discusses marketing mix strategies, ranging from product-specific services and pricing models to complaint management and customer clubs.
7. Requirements for the introduction of a customer loyalty management system: Analyzes the necessary systemic, structural, and cultural foundations for successful implementation.
8. Strategic aspects of customer loyalty management: Outlines the strategic framework for defining reference objects, target groups, and timing for loyalty measures.
9. The relationship between customer satisfaction and customer loyalty: Investigates the functional correlation, suggesting saddle-shaped or progressive models of influence.
10. Control of customer loyalty management: Details objective and subjective measurement methods and introduces efficiency calculation techniques like gross margin and process cost accounting.
11. Conclusion: Summarizes the necessity of integrating loyalty strategies and measurement routines for long-term corporate competitiveness.
Keywords
Customer loyalty, Customer satisfaction, Customer relationship management, CRM, Customer retention, Marketing instruments, Complaint management, Customer club, Loyalty index, Customer value, Process cost accounting, Market share, Customer acquisition, Behavioral intent, Service design.
Frequently Asked Questions
What is the core focus of this work?
The work focuses on customer loyalty in the business-to-consumer sector, providing a comprehensive guide to understanding, implementing, and controlling loyalty strategies.
What are the primary themes covered?
Key themes include the economic importance of retention, the different forms of customer commitment, specific marketing instruments, and the necessary organizational prerequisites.
What is the main research objective?
The aim is to present an overview of relevant terms, tools, and practical methods for managing and evaluating customer loyalty systems effectively.
Which scientific methods are applied?
The study relies on literature analysis and conceptual modeling, utilizing frameworks like the confirmation/disconfirmation paradigm and various efficiency measurement techniques.
What is discussed in the main part of the document?
The main part covers the classification of loyalty types, the four dimensions of the marketing mix (product, price, communication, distribution), and controlling mechanisms.
Which keywords characterize this paper?
Key terms include Customer Loyalty, CRM, Customer Satisfaction, Customer Retention, and Loyalty Management.
How does the "Customer Loyalty Index" (KLI) work?
The KLI is calculated based on customer survey answers regarding recommendation, future purchase intentions, and long-term commitment, usually normalized on a 0-100 scale.
Why is "Complaint Management" considered a strategic tool?
It allows companies to consolidate endangered business relationships, restore satisfaction, and gather qualitative insights to prevent future errors.
What defines "Ballast customers" in the portfolio matrix?
Ballast customers are those with low customer value and low customer satisfaction, often requiring an evaluation of whether the business relationship should be terminated.
What role does the "Customer Club" play in loyalty management?
It acts as a communicative unit that increases customer involvement through exclusive services, fostering an emotional bond and generating valuable data for targeted marketing.
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- Stefan Meier (Autor:in), 2005, Customer loyalty and customer loyalty programmes. Goals and methods, München, GRIN Verlag, https://www.grin.com/document/1187340
