Customer Loyalty at ASOS 1

CUSTOMER LOYALTY AT ASOS

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 Customer Loyalty at ASOS 2

Contents
1. Introduction................................................................................................................3

2. Customer Loyalty at ASOS.......................................................................................4

2.1. Company Profile.................................................................................................4

2.2. Consumer-Centric Approach at ASOS...............................................................5

2.3. Attracting More Loyal Customers......................................................................5

2.4. Building the Strong Customer Loyalty at ASOS...............................................6

2.4.1. A-List Loyalty Schemes..................................................................................6

2.4.2. Premier Delivery.............................................................................................7

2.4.3. Wide Product and Brand Range......................................................................8

2.4.4. Customer Care.................................................................................................8

3. Conclusion.................................................................................................................9

4. References................................................................................................................10
 Customer Loyalty at ASOS 3

Customer Loyalty at ASOS

1. Introduction

The customer loyalty actually highlights the extent to which a consumer can devote

himself towards the company products and services just because of the high level of satisfaction

or we can say delightfulness. This refers to the consumers’ tendency to like and choose any one

particular brand over the available many other options. The main aim of this report is to highlight

the applicability of the concept of customer loyalty in an online retail business. For this purpose,

the company of ASOS is selected which is the best and suitable example of the online retail

business. The example of ASOS is the best option for the completion of this particular report

because it is highly famous for its loyal customer base. One can evaluate the effectiveness of

brand loyalty by the influential branding strategy of ASOS, which is highly consumer-centric in

nature. The stronger loyalty form the customers means the intense loyalty effect in that particular

company.

The brand power or the concept of customer loyalty is highly linked with the level of

customer satisfaction. Consequently, happy clients always favor particular brands that come up

with the fulfillment of their demands and needs. The loyal consumers usually prefer to purchase

particular company products or services utterly, and they are not enthusiastic to change their

preferences for any of the competing firms. In the case of ASOS, a British based online fashion

brand, the reason for the global presence of a clothing store is the actual power of the loyal

customers. The customers at ASOS demand consistency in the high product quality, which is

offered at a low price. This is the key success factor behind the strong customer base at ASOS

online retail Company.

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2. Customer Loyalty at ASOS

2.1. Company Profile

ASOS is a British based online fashion retailer company, which started its business

operations in the year 2000, in London. At the time of initiation, the main target customers at the

company were only young adult people. The research studies about the sales of ASOS tell that

the website of the company nearly deals with more than 850 brands including its own product

lines of clothing and accessories. On the other hand, the shipments of ASOS Company are going

nearly worldwide by covering more than 200 countries on the globe (Cichosz, Goldsby,

Knemeyer, and Taylor, 2017). The fulfillment centers of the company lie in the UK, US, and

Europe. The entire information depicts the strong customer base of ASOS Company in the global

market.

The main source of online business in the case of ASOS Company is the local mobile

companies and web experiences. The company is serving a huge base of loyal and sincere

customers around the globe. The product lines of the company cover a variety of entities

including clothing ranges, women and men’s wear, cosmetics, jewelry, and other accessories,

footwear and the beauty collections (Juga, Juntunen, and Paananen, 2018). The company is

working under some of its own label names including ASOS Curve, ASOS Tall, ASOS Petite,

and ASOS Maternity. The management of the company deals with a wide and extensive range of

customer segments and sizes, across different categories and price points. Including the USA,

UK, and Europe, the company has also maintained returns centers in the countries of Australia

and Poland (Lemon, and Verhoef, 2016). The company deals with the local and customized web

and mobile services in different countries including Australia, France, Germany, Italy, Spain,

Russia, and the United States.

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2.2. Consumer-Centric Approach at ASOS

The management at ASOS Company always tries to behave and operate in a consumer-

centric pattern. In order to fulfill the requirement of the customers, the management always plans

for the ideas and strategies, which can grab new customers and try to retain the previous ones in

the more loyal way (Ramadhan, Kusumawati, and Mawardi, 2018). Therefore, there are some of

the strategies and schemes, which offer such services to the customers that actually attract more

buyers in the end. The research studies have shown that in case of such clothing brands, usually,

customers behave in a cynical manner towards the discounts and loyalty programs (Coelho, Rita,

and Santos, 2018). The ASOS Company has taken advantage of this research and thus tried to

involve the loyalty programs for better customer relationship management.

2.3. Attracting More Loyal Customers

The company always tries to attract more and more loyal customer by offering certain

schemes and offers which can grab the attention of the buyers. In addition to the offers and

schemes, the user-friendly selling approach also attracts and retains loyal customers because they

think that the company is working more on the customer-centric approaches and strategies for

their business operations. In order to maintain this perception, the management at ASOS

Company has planned for local and customized mobile and web access for the customers to

order at their websites (Bilgihan, Kandampully, and Zhang, 2016). The web maintenance is

highly dependent upon the geographical region and its specialties about the customers. The main

tagline of the ASOS Company is to deal with the young adult customers. In this regard, the use

of social media is highly an attractive approach to reach the target customers within no time

(Bustamante, and Rubio, 2017). The management has discovered that social media marketing

campaigns are highly cost-effective.

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2.4. Building Strong Customer Loyalty at ASOS

ASOS is one of the top leading online retail businesses in the world. Customer loyalty is

the only factors, which has contributed towards the success of the brand in a progressive manner.

The management continuously plans for something new and innovative strategy to attract and

retain loyal customers (Saura, Berenguer-Contrí, Molina, and Michel, 2017). Here are some of

the customer-centric policies or the plans at ASOS Company, which helped the management in

history to reach this particular level of success.

2.4.1. A-List Loyalty Schemes

In February 2016, the management of ASOS Company has launched the scheme of A-

List loyalty scheme, which was the initiative or we can say the innovative step in the competitive

online fashion retailing business. At that point, of time, the competitors of ASOS including

Boohoo and Misguided has not participated in the launch of any such customer loyalty scheme.

The main theme of this loyalty scheme is that every £1 spent actually save five points against the

spending (Solberg, and Kaasin, 2018). After the gaining of 500 points i.e. the spending of £50,

the customer may get a reward of the free £5 voucher to shop at the online store. There are

distinctive three categories of this A-List loyalty scheme for the customers, where each category

defines its rewards system in a different way. The categories even include the cynical birthday or

any particular event discount (Konstantinou, 2018). This is all meant to grab the attention of the

customers or making them even more loyal.

In the era of technology, the online business entity or we can say the e-commerce is

highly competitive in nature. Therefore, the gaining of customer loyalty for any online business

is a highly significant and influential matter for the strategy making at the company (Fernandes,

and Moreira, 2017). The main aim of this loyalty scheme at ASOS is to make customers ready
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for spending their money and wanting to spend even more with willingness. The research studies

have shown that after the initiation of the loyalty schemes, nearly 60% of the UK residents think

that all the retail stores including the online businesses should offer such loyalty schemes to

retain the customers along with such beneficial schemes for them (Tontini, da Silva, Beduschi,

Zanin, and Marcon, 2015). This actually engages the customers in an attractive manner.

2.4.2. Premier Delivery

The premier delivery scheme at ASOS Company means that the spending of £9.95 can

save £5.95 for every single order placed at the website or through a mobile application. This

loyalty scheme is a common practice in many of the retail online businesses particular

AMAzon.com, which is actually the leader of the premier delivery mechanism. However, in case

of ASOS Company, the management promises this premier delivery with one day waiting

throughout the year, which actually welcomes the customer to shop in a faster mode without

waiting long for the delivery (Hoekstra, 2017). This particular scheme includes occasional

discounts, accessible early sales and a monthly magazine membership.

The research studies have shown that nearly 5 out of 6 people will tend to buy more if

they get their product delivered on the same date (Watson, Beck, Henderson, and Palmatier,

2015). The main aim of this loyalty scheme is to allow the customers for saving money while

receiving the delivery of their parcels in a faster mode. The fast delivery will retain and urge the

customers to shop more at the company.

2.4.3. Wide Product and Brand Range

The attraction of the customers is not bound only to the loyalty schemes and discount

offers, rather the variety of endless brands and extensive product lines can act as a catalyst for

boosting the customers to shop even more. The customers sometimes like to have all their
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demanded products at one place (Bilgihan, 2016). Therefore, ASOS management has taken this

customer perception as a part of their placement strategy. Initially, the company only aimed for

young adult customers. On the other hand, at this point in time, the company is proud of its

extensive product and brand range. In fact the research studies have shown that the existing loyal

customers at ASOS Company claim that the ASOS is offering endless brands and products using

the power of e-commerce (Wirtz, & Lovelock, 2016). This is another way of grabbing and

retaining customers using particular tactics.

2.4.4. Customer Care

Customer care is the most significant tool for creating a positive brand image in the

market. At this point in time, the regulation of customer relationship management is highly

effective in the business world, irrespective of the industries and mode of business (Lam, 2016).

The customer care includes the loyalty programs, the social and societal marketing programs and

the after sale services. The management at ASOS Company offers a variety of distinctive ways

to connect and contact in case of any product flaw, any information requirement, any guidance or

any assistance in the ordering procedure at the website or mobile application (Li, and Zhang,

2016). Therefore, the customers at the company have instant access to the customer care

representative in a positive manner.

The websites of ASOS Company owns a FAQ section, dealing with a wide range of

issues, problems, and concerns of the customers. The return policy of the products, in case of any

damage or problem, is highly appreciable and fast at the company. In addition to generally asked

frequent questions, the website also offers an online chat for customized problems (Fernandes,

and Moreira, 2017). In the case of social media presence, private messaging is another customer
 Customer Loyalty at ASOS 9

care tool (Tontini, da Silva, Beduschi, Zanin, and Marcon, 2015). In other words, customer

loyalty is one of the significant drivers behind the success of the ASOS Company.

3. Conclusion

In summarized words, it is quite evident now that the applicability of the concept of

customer loyalty is highly visible in the case of an online retail business i.e. ASOS. Brand

control or the idea of customer loyalty is highly related to the level of satisfaction in the mindset

of the customer. The management at the ASOS online store is highly popular in the entire online

business world just because of customer relationship management. The ASOS’s business

operations are highly consumer-centric and thus offering low prices for high-quality products. As

a result, the contented clients all the time prefer the particular brand of ASOS that come up with

the accomplishment of their exclusive demands and needs.

The trustworthy consumers frequently prefer to buy particular company products or

services, and they are not ready to change their preferences for any other available brand. In the

case of ASOS, the main reason for the worldwide occurrence of a fashion-clothing store is

actually due to the strong and loyal customer base. The consumers at the company of ASOS

demand the reliability in the high product quality, which is being offered at comparatively low

price. This is the key factor behind the strong and loyal customer base at the online retail

business of ASOS Company.

Customer loyalty depicts the degree to which a customer can dedicate himself towards

particular products just because of the high-level satisfaction or delightfulness. The customer

loyalty at ASOS refers to the tendency of the customers to look for and prefer the particular

products over the available many other furniture companies. This report has justified with the

connotation of the applicability of customer loyalty in the context of ASOS Company. The
 Customer Loyalty at ASOS 10

example of ASOS is the best-suited option for the completion of this particular report because

ASOS is extremely renowned for its faithful customer base.

4. References

Bilgihan, A., 2016. Gen Y customer loyalty in online shopping: An integrated model of trust,

user experience, and branding. Computers in Human Behavior, 61, pp.103-113.

Bilgihan, A., Kandampully, J. and Zhang, T., 2016. Towards a unified customer experience in

online shopping environments: Antecedents and outcomes. International Journal of

Quality and Service Sciences, 8(1), pp.102-119.

Bustamante, J. and Rubio, N., 2017. In-Store Customer Experience: a First Approximation in the

Construction of a Scale. ACR Latin American Advances.

Cichosz, M., Goldsby, T.J., Knemeyer, A.M., and Taylor, D.F., 2017. Innovation in logistics

outsourcing relationship-in the search for customer satisfaction. LogForum, 13(2),

pp.209-

219.

Coelho, P.S., Rita, P. and Santos, Z.R., 2018. On the relationship between consumer-brand

identification, brand community, and brand loyalty. Journal of Retailing and Consumer

Services, 43, pp.101-110.

Fernandes, T. and Moreira, M., 2017. Customer Brand Engagement, Satisfaction, and Brand

Loyalty: A Comparative Study between Functional and Emotional Brands. In 5th

International Consumer Brand Relationship Conference.

Hoekstra, H.A., 2017. Creating customer loyalty in practice: a multiple case approach (Master's

thesis, University of Twente).

Juga, J., Juntunen, J. and Paananen, M., 2018. Impact of value-adding services on quality, loyalty
 Customer Loyalty at ASOS 11

and brand equity in the brewing industry. International Journal of Quality and Service

Sciences, 10(1), pp.61-71.

Konstantinou, E., 2018. Market Research on Loyalty Programs in the Greek retail market.

Lafley, A.G. and Martin, R.L., 2017. Customer loyalty is overrated. Harvard Business

Review, 95(1), pp.45-54.

Lam, A., 2016. The impact of corporate social responsibility on customer loyalty: a study of the

banking industry in Hong Kong(Doctoral dissertation, Heriot-Watt University).

Lemon, K.N. and Verhoef, P.C., 2016. Understanding customer experience throughout the

customer journey. Journal of marketing, 80(6), pp.69-96.

Li, J. and Zhang, Y., 2016. Chinese Consumers’ Attitudes toward Experiential Marketing: The

Case of IKEA.

Ramadhan, M.I., Kusumawati, A. and Mawardi, M.K., 2018. The Influence Of Relationship

Marketing Toward Purchase Decision And Its Impact On Customer Satisfaction (Survey

on Customer of Informa Tunjungan Plaza Surabaya). Jurnal Administrasi Bisnis, 62(2),

pp.37-43.

Saura, I.G., Berenguer-Contrí, G., Molina, M.E.R. and Michel, G., 2017. Customer segmentation

based on store equity: What explains customer store preference?. Journal of Brand

Management, 24(6), pp.546-561.

Solberg, A.W. and Kaasin, E.B., 2018. Growing by exciting: a study of the effects of perceived

firm innovativeness on customer satisfaction, customer loyalty, and firm

performance(Master's thesis).

Tontini, G., da Silva, J.C., Beduschi, E.F.S., Zanin, E.R.M. and Marcon, M.D.F., 2015.

Nonlinear impact of online retail characteristics on customer satisfaction and

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loyalty. International Journal of Quality and Service Sciences, 7(2/3), pp.152-169.

Watson, G.F., Beck, J.T., Henderson, C.M. and Palmatier, R.W., 2015. Building, measuring, and

profiting from customer loyalty. Journal of the Academy of Marketing Science, 43(6),

pp.790-825.

Wirtz, J, & Lovelock, C 2016, Services Marketing: People, Technology, Strategy (Eighth

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