4
The Change: November 2013 Issue
Some companies like Tesco, Costa, Boots and Sainsbury’s collect the information of all the customers purchases by the use of loyalty card system that when the consumer swipes it automatically adds the purchases to the list of data already existent on that customer. This data is conserved and analyzed by the shop so it can make decisions based on previous purchases on which products to have in store to satisfy his customers individual needs and wants (Felgate et al 2012).
Amazon and Tesco on their website proposes some products based on the previous purchase data. (Blythe 1998) This loyalty card system allows the customer to benefit of vouchers or offers due to the acquisition of points of loyalty towards the shop’s brand, which add up (Thomas 2009; EIU 2009). This can push customers to consume more to have the possibly to receive some vouchers and offers (Thomas 2009; EIU 2009).
This loyalty card system allows the customer to benefit of vouchers or offers due to the acquisition of points of loyalty towards the shop’s brand, which add up (Thomas 2009; EIU 2009). This can push customers to consume more to have the possibly to receive some vouchers and offers (Thomas 2009; EIU 2009).
This customer relationship marketing allows the customer to be recognized as an individual. Customers might mostly appreciate this individual research on each individual as it makes their shopping easier, cheaper and closer to their expectations. This individual recognition and knowledge of the customer buying habits makes the customer feel more valued to the company, which will make him more loyal as he appreciates this individual attention. This marketing trend can be seen negatively as some customers don’t want that kind of attention. The customer still has the choice to not participate in the individual process by refusing to give information on them selves and not have loyalty cards. This problem, with a new strategy like being a customer-focused company would not happen.
Indeed, “customer focused companies carefully segment their customers, develop a specific value offering for target customers and deliver an outstanding customer experience. In these organizations, everyone (regardless of position or function) knows what the customer strategy means for his or her job and makes decisions consistent with this strategy”(Kellogg). This strategy can easily be implemented in a company by putting the customer in the center of the company, to take his place and see what the customer sees and wants. This will allow the company to understand and act better around the customer, which will put the company far beyond their competitors. This strategy is better than customer relationship marketing as it isn’t just the marketing department but the whole company which has this focus: meaning that they should be no longer problems of strategy in different departments. (Miller R. and Miller E. L, 2007)
http://www.uni-verse.biz/going-out/content/costa
http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-logos
http://www.andovermind.org.uk/hdaa-members/