Name: Muhammad Usama Khalid

Enrollment Number: 20232-33506

Marketing Management – Spring 2023 MKT 402, WE1-16861

CASE STUDY - AUDI

Questions

1. In your opinion, how important is it to invest in customer loyalty for cars, a

product most people buy only every couple of years?

Ans: The customer thinks they'll get the best products or services. Additionally, it
implies that the customer won't explore for alternatives or respond to others that
approach them. Customer loyalty is the most crucial area to invest in for all business
kinds. Customer satisfaction is crucial for attracting devoted clients. When comparing
the perceived success of a good or service with expectations, a feeling of happiness is
known as satisfaction. If production or experience does not exceed requirements, the
consumer may feel disappointed. However, the client is happy with his performance. If
it goes above and above their expectations, the consumer will be extremely happy.

2. Try to estimate the lifetime value of an Audi customer.

Ans: Customer lifetime value (CLV) is a measure of the total income a business can
expect to bring in from a typical customer for as long as that person or account remains
a client.

In other words, The amount of money a client is anticipated to spend overall on a

product or service over the course of their lifetime is known as lifetime value. By using
an example, it should be simple to understand the lifetime value of a customer.
Assuming Audi makes 10,000$ in profit annually. Every five years, a consumer can buy
an automobile, making a total of 10 purchases over his lifetime. Then, the client profit
will be $1,00,000.

3. What measures should Audi take to build long-term loyalty relationships?

Ans: To build long-term loyalty relationships, Audi should focus on the following
measures:

Making Marketing Strategies: Audi should make marketing strategies for their
customers to engage them and conduct different workshops for them. In simple words,
organize programs that plays a role of reminder for their customers and highlight the
Audi’s Unique sale proposition and make their customers loyal.

Providing outstanding customer service: Audi should place a high priority on customer
service to guarantee that consumers enjoy a great ownership experience. Audi should
strive to surpass customers' expectations throughout the purchasing process and
afterward.

Quality and dependability should be emphasized: As a key consideration for buyers

when selecting a car, Audi should continue to emphasize its reputation for quality and
dependability. Audi can foster customer loyalty and trust by upholding high standards in
design, engineering, and manufacture.