CUSTOMER RELATIONSHIP MANAGEMENT

Customer Relationship Management

Table of Contents

Idefix1

Loyalty cards offered by Idefix1

Customer loyalty1

Contribution a customer loyalty card2

Benefits of loyalty cards to Idefix3

Strategies to increase customer loyalty5

Back-End Rebate Program5

Prompt Payment, Prepayment or Extended Terms6

“Loss-leader” Product Lines6

Proactive Sales and Customer Service6

Other strategies7

Examples8

Moosejaw8

Customer Relationship Management

1. Critically analyse the potential contribution a customer loyalty card can make to Idefix's expansion and profitability.

Idefix

Idefix is one of the largest food retail chains in Europe. The target markets of the company are the customers belonging to the upper class. In the last 5 years, the sales of Idefix have increased by 20%. There are 600 stores owned by the company.

Loyalty cards offered by Idefix

Two kinds of loyalty cards are offered by Idefix to the customers.

Personalized card - Customers are eligible for this for a short period of time.

Air Miles card - Customers are eligible for this for a long period of time.

Customer loyalty

Customer loyalty refers to the situation when a customer makes repeated purchases from a company. Customer loyalty can also be known as customer satisfaction or trust that a customer places on a company. Loyalty of customers is very essential for the companies either big or small (Buttle 2010, pp. 100).

Contribution a customer loyalty card

Some companies follow ISO9001 Standard which they also, use as a benchmark. The full form of ISO is International Standardization for Organization. A reasonable quality image is reflected by a company when it is certified by ISO9001 Standard. The primary purpose of this standard is to attract the new customers to enable expansion of the business. Customer satisfaction is, therefore, given a lot of importance at Idefix since more satisfied customer's means more loyalty.

When customers are happy and satisfied, they talk good about the company with their friends and relatives. Word of mouth considerably helps in maximizing sales. This is also a way in which the company enjoys free advertising of their products through their customers. Moreover, this type of advertising is more effective as well. Customer satisfaction therefore plays a very crucial role for Idefix and it works as a pull factor. It is very important for the company to address all the problems and customer complaints that customers have. However, it should be ensured that complaints are addressed in a polite and professional manner. Similarly, the quality of service should also be good and customer retention strategies must be adopted (Armstrong & Kotler 2004, pp. 142).

Besides all this, it is also vital to have customer loyalty programs that Idefix also has. These programs are of two types, either one time or continuous. One time loyalty cards enable customers to avail discounts, free gifts and offers such as purchase-with-purchase of products. However, the ongoing loyalty program is a special membership that is meant only for the most loyal customers. On the basis of spending and duration with the company, free membership cards are given to the loyal customers.

Customers can use these membership cards to purchase products as well as services at reduced prices. Some people also have the opportunity to enjoy special discounts ...