CUSTOMER LOYALTY

PRESENTATION

Professor Dr. Beverly Foster-Hinds

BUS 5112 Marketing Management
Term 1 - Fall 2021

Group 0067A
Andrews Bonsu | Cheryl Hill-Watson| David F. Morales Betancourt |Simbarashe Mupandanyama | Lutfur Rahman | Peter Wahba
 Abstract

As small business owners, we need to understand the

importance of customers. Customers are the most important
factor of any business. Thus, we will conduct an analysis of
the current customer acquisition and retention strategies
performed by D’King Cargo Express. It is a small business that
currently is at the introductory stage. This presentation seeks
to understand the current market mix of the company.
Recommendations about how to gain and retain customers in
the short and long term are provided.
 Business Background Logistics Competitors:
D’King Cargo Express is a courier company located in New York. The company is two months old ❖ FedEx
and currently offers two services: ❖ Aramex
Door to Door Service between USA and Colombia ❖ DHL Express
• Boxes - non-commercial goods weighing 11-110 pounds ❖ Servientrega International
• Pricing - Promotion rate - $0.99 per pound; Regular price $1.50 per pound, insurance fee
-$10 for every $200 of declared value.
Casillero Virtual – Virtual Lockbox
Purchases bought in USA are delivered to a storage facility in New York, repacked, shipped and
delivered to Colombia.
• Pricing – Two Options Available:
• Option 1: Client Purchase Products, ships to company charged Door to Door Fees + Repacking
Fee
• Option 2 – Business purchases products, convenience fee 10% of invoice + Option 1 fees

Introduction & Company Overview

BUS 5112 MARKETING MANAGEMENT
 Customer Retention
D’King Cargo Express is a start up and our product offering is still in the
introduction stage of the product life cycle. It is quite difficult to secure
customers, but not impossible. Once we acquire these customers, we must
endeavor to retain them. It is thus crucial for us to measure the rate at which
we are acquiring and losing customers in order to keep a pulse on this activity.
This should be emphasized and should become one of the key issues of
learning whether the business is doing well or not. In its implementations, the
formula should be considered to measure customer retention:
Customer Retention = Total Number of Customers (July) *Total Number of
new customer/Total Number of customers (June)
This formula measures month on month customer retention rates and
thus tracks the rate of performance of the desire to have long term
relationships (Black, 2020). (1)

((
 Product Life Cycle
Introductory Stage
“The highlighting factor of this
stage is that the product is new in the
market, sales are slow and to push it
higher the company has to incur D’King
heavy expenditure on advertisement Cargo
to make it appealing to customers” Express is
(The Economic Times, n.d). here

Maturity
Growth
Decline
Introductory

BUS 5112 MARKETING MANAGEMENT

 Target Segment
D’King Cargo Express includes individual customers who are desirous of various logistics solutions to transport
products from select cities in the USA to Colombia & vice versa.

Increased Brand Awareness: Increased Revenue: Capture Market Share: Increased

Ensure that current and
potential customers are able
to recognize and recall the
brand under varying
situations.
Implementation:
Promote service offerings
by placing ads on social
media platforms i.e.
Facebook, Instagram, You
Tube
Increase patronage by,
ensuring offerings are
readily available online and
onsite across geographical
regions
Implementation:
Offering volume
discounts, frequent buyer
discounts to encourage
repeat business
Establish presence & gain
market share against
competitors – FedEx, DHL
Express, Aramex,
Servientrega etc
Implementation:
Introduce new & emerging
technology to customers,
strengthen existing
relationships, improve &
maintain quality offering
Customer Loyalty:
Attract new
customer, retain &
grow love for the
brand
Implementation:
Make offerings
unique that retain
customers and builds
brand loyalty

Current Marketing Strategies

BUS 5112 MARKETING MANAGEMENT
 Create & Maintain Develop a
Create Customer Communications Relationship of
Feedback Calendar: Trust:
Loop: Build brand
Create a system to encourage & Connect via emails and reputation by
capture newsletter with clients being trustworthy
customer feedback for review to keep them informed in advertising &
within the company about the brand customer service

Provide one
of a kind
Offering a product or service product and
that is superior to your competitors
service
in the eyes of your customers is a
difficult task, but the payoff is well
worth the effort at the end
(Wayland & Cole, 1997).

Customer Retention Strategies

BUS 5112 MARKETING MANAGEMENT
 Marketing Mix
Product
Value Proposition Two services available:-
Place • Customer initiated purchases shipped
D’King Cargo Express will Price
conveniently deliver our valued from USA to Colombia
• Flexible pricing • Business purchases products & ships to
customers packages on time,
without any delays, to the comfort • Target high and client in Colombia. Service and
of their homes. low end user • Colombia & convenience fee is applied.
• Reduced cost of New York
production by Promotion
outsourcing • Outbound
• Various marketing channels
transportation & Inbound
• Niche Market – only provider of
• Price range - Service
door to door service
$0.99 - $1.55 available to
• Social Media – Facebook,
per pound customers
Instagram
• Online Store – brand website
 When considering a pricing strategy, it is essential that businesses try to
determine how price-sensitive their customers are (Ali & Talwar, 2013).
Factors we considered
before setting the prices for
D’King Cargo Express
customers:-
• What will be the reaction of
customers?
• Do customers think the
service is valuable?
• What is the potential market
size and demographics?
• How sensitive they are to
price changes?
Pricing
It is the one strategy you
Competitors
should consider for your new
Analyze competitors pricing and
business that can truly make or
offering to determine D’King s pricing.
break it. If you set your price too
Economy, Government Laws and
high, your competitors will take
Regulations
all the business (Yan, 2008).
Adjust pricing to match market
conditions, operate within ethical
guidelines to protect customers, brand
reputation and promote healthy
competition
Adaptability: measurement and
monitoring ensures our adjusting strategy
as needed.
Factors Determining Pricing Strategies
Strategic Benefits Of Brand Loyalty & Recommendations

Factors D’King Cargo Express uses to influence Customer Loyalty

Prioritize Customer Service

Servicing your customers' needs is a simple way to build loyalty (Tiwari &
Abraham, 2010), and this is what D’King Cargo Express is doing.
Reward Customer Action
How many of your customers return after making their first purchase? If
there is attrition, review reward system
Collect Customer Feedback and Data
Hearing directly from the source is a foolproof way to improve your
customer loyalty strategy to build a framework for a loyal audience.
Display Social Proof
Displaying social proof on your website is a great way to increase
customer trust. When someone recommends your products and gives you
positive feedback, this is known as social proof.
 Stokes (2013) explains that
loyalty is about acquiring and
retaining customers, it is not
automatic but is built over time
Maximize Increase Adds value and stands on the axis of trust
Increased
Develop a
customer brand to in the brand..
relationship revenue &
experience loyalty customers profitability

Customer care
Invite Remain Rewards &
Deliver on is important –
repeat top of technology recognition
brand
business mind facilitates real are key to
promise time feedback success

Key Factors Influencing Brand Loyalty Post Purchase

 Long
LONG TERM LOYALTY Term Loyalty-Relationship
RELATIONSHIP SIMBA
Reichheld and Detrick (2003) defines Strategy Implementation
customer loyalty as a strategy that creates mutual
rewards and benefit for both the firms and
customers. It is based on customers’ past Incentives for repeat ➢ Introduce counter at each purchase (Jackson,
experience and future expectation and hence purchases 2020)
customers will regularly utilize the current ➢ Increase the breadth of incentives to 100 and
company’s service (Lee & Cunningham, 2004).
Once a customer understands a supplier’s process Good Customer Service 500 (Black, 2020)
of delivering value to them they are likely a happy ➢ Deliver Customer desire (Wayland & Cole, 1997)
customer (Phillip, 2021). Marketingsherpa (n.d.) Building trust in service ➢ Obtain customer review
states that a business that is introduced via social
delivery ➢ Building trust in service delivery (Uniqueiq, n.d.)
media on either Facebook or Instagram increased
activity on their blogs or website by 232%. ➢ Fully utilizing Instagram relationship
Staying in Touch ➢ Ensure with door to door service obtain post
delivery survey
Build Referral Incentives ➢ E-mail
➢ Build Referral Incentives (Galera, 2019; Patel,
2019)
 Attracting And Retaining Customers
In a 2017 study, Capgemini
(2019) found that 75% of
organizations believe themselves
to be customer-centric, but only
30% of consumers agreed
—that’s a 35% gap). The study
also found that 8 out of 10
customers are actually willing to
pay more to have a better
experience (Capgemini, 2017).
• Surprise gifts and • Offer Door to Door customers a loyalty discount
discounts • Include advertising paraphernal in customer
packaging, also, logo gift items (pens, calendar)
• Provide an • Create VIP list and offer VIP discounts occasionally
enhanced customer • Recognize customer birthdays with a card
service • Consistent customer service interactions
• Variety of contact channels to encourage & highlight
• Create Instagram communication preference
blog • Customer profile matched with customer service
agent
• Blogs and other social media platforms keep
customers informed of news and trends, to solidify
B2C relationship
Team Members Roles & Responsibilities

Lutfur Simbarashe
Andrews Customer Retention
David Customer
Current Marketing Strategy
Company Retention
Strategies & Customer Loyalty &
Background, Implementation Peer Reviewed
Pricing Strategy
Product Resource
Description, Cheryl Implementation
Product life Peter Customer Loyalty – Cheryl
Cycle, APA Customer Retention Key Factors That Product Life Cycle
Formatting Strategy Implementation Influence Loyalty After Layout
Purchase

BUS 5112 MARKETING MANAGEMENT

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