BIIB

Case Study - B

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CUSTOMER LOYALTY
THE ULTIMATE OBJECTIVE OF EVERY
MARKETER
 Table Of Content
• Overview
• Trust, commitment and customer satisfaction
• Customer Value
• Customer acquisition and Retention
• Customer Relationship Management
• Conclusion

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 Overview Of The Case
• Customers in India are going through a transformation
• Brand loyalty plays an important role now-a-days
• Free trials are also found in case of expensive offerings
• Brand loyalty is more than just repurchasing
• Customer wants unique and distinctive experience
• Continuous innovation – A sure way to retain customers
• Loyalty programmes are omnipresent in business

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Companies emphasize more on:

Transparency Convenience Relevance Engagement Ease of use

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 Question - 1

‘’Trust, commitment and customer satisfaction are the pillars to

building customer loyalty”. Enumerate through different examples
keeping the case in context.

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 Customer Loyalty
• Likelihood of existing customers to continue purchasing from
same company.

Customer
Satisfaction

Customer
Commitment
Loyalty

Trust
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The Apostle model

Behaviours of Customer

Loyalist - Staying and Supporting

Defectors – Leaving or having left and unhappy

Mercenaries – Coming and going (low

commitment)

Hostages – Unable to switch, negative word of

mouth

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 McDonalds
Menu Innovation
• Small toy with “Happy meal combo”
• Breakfast Menu
• FSN Analysis  Fast moving
 Slow moving
 No-moving

• Local people, local product, local price

• Transforming brands towards Healthy menu
 Reducing Sodium by 10% in nuggets to 20% in fries
 Reduce oil content by 42%
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Trust, Commitment And Customer Satisfaction

• 3 Crore products in India • 6 levels of quality check

• 66.66% are from Amazon • Hassel free shipping
Pantry • Speed batch
• Uniform packaging(Brown
box)
• On-time Delivery
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• >53 lakh first citizen loyalty • 295 stores
program members • 120+ cities
• >75% contributes to company • Big Bazaar profit Club
sales • USP- Low pricing and round the
• Omni channel experience like discounts
express store and ship from • “Hafte ka sabse sasta din”-
store Wednesday Bazaar 12
 Question - 2

“Delivering customer value has a strong linkage to generating long-term

customer loyalty”. Provide arguments from diverse sectors supporting
the statement.

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 Amazon Prime
• One-third of all the orders placed are from Amazon Prime in
Amazon India
• FMCG offers 1.9 million (19 lakhs) products from 9000 sellers
• “Great Indian Sale”, Prime members accounted 35% of the order,
purchases grew by 100% of prime members
• Exclusive deal
• Free Prime videos
• Amazon prime music
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 Customer Value

- Hygiene, decent - 1200 stores in 2018

environment, predictable
- 49% share in Men’s
Razor
- Aggressive R&D
- Mach3- fewer strokes
Source:- Business Standard
- Everyday value offers
service
- 30 minutes delivery
- 500+ cities and 18000
hotels tie up , 2.7 Lakh - Dominos India is the 2nd
rooms. largest market for
Dominos Inc.
- 27% in market share of
rooms. -70% Market Share in
2017
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 How to create Customer Value ?

• Give Specialized, Personalized and Convenient service to your

customers
• Co-creation of innovation with your Customer
• Customers love loyalty programs, if you make it easy for them
• Identify the segments in which you can create more value than
your competitor

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 Question - 3

Relevance, experience, engagement, personalization are some terms

gaining importance in the current age for customer acquisition and
retention. Explain how these have added new dynamics to the game of
building brand loyalties.

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 Customer Acquisition and Retention

• Boosting customer retention rate

by just 5% can increase profit by
between 25% to 95%

• A mix of personalization,
relevance, exclusivity and
engagement helps in winning
customers.

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 Reliance Jio

• Reliance Jio uses competitive pricing

strategy
• Used aadhar card number for faster SIM
activation- even offered home delivery
services
• Acquired over 10 Crores subscribers
during free trial period- redeem 7.2 Crore
subscribers once trail ended

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 Examples

• Member only
app
• 10 Lakhs plus
downloads, 4.6 • 3000+ style trends
rating • 42 lakhs followers on
• Rewards on Facebook
paying credit • 1 lakh products/month
card bills 20
 Question - 4

Customer relationship management (CRM) process aims at enhancing

customer loyalty. What are the various initiatives on the establishment
of customer connect, management of data, investment in technology,
and people development being taken by organizations today for an
effective CRM strategy?

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Customer Relationship Management

Share success

Analysis

Targeted Communication

C Customer Care

R Cure And Nurture

Anytime Anywhere Access to Database

M
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• Customer Value = Benefit – Cost

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• Offline Selling mode
• 6 Experience Store in India
• set up 8 pop-up stores in India
• Conversation-driven sale

• Loyalty, program” Har Mahine Bonus”

• Supermarket Chain of 330 stores
• Rs. 300 vouchers and bonus on
purchase of Rs. 1000

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• Customer Value = Benefit – Cost

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• Customer Connect:
– Use of Online celebrities and micro influencer
– Use of bloggers
– Trending hashtags

• Management of Data:
– Amazon
– IHG

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• Investment in technology:
– Chat Bots
– AI

• People Development:
– Decathalon
– LensKart
– FutureGroup

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 Conclusion
• It’s not the Customer Loyalty, but Brand Loyalty
• Brand Loyalty generates greater market share,
• Brings in new customers with Word of Mouth publicity
• More real-time & personalised experience
• Loyalty programs with rewards will go a long way
• Coalition loyalty programs would be a game changer

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