BU470 Chapter Notes - Chapter 5: Customer Relationship Management, Corporate Social Responsibility, Brand Loyalty
Document Summary
Customer relationship management (crm: the main way of maintaining & ^ loyalty, ai(cid:373) to (cid:373)ake the lo(cid:455)alt(cid:455) (cid:862)sti(cid:272)kie(cid:396),(cid:863) (cid:373)ea(cid:374)i(cid:374)g that the (cid:272)usto(cid:373)e(cid:396) (cid:449)ill e(cid:374)gage i(cid:374) so(cid:373)e effo(cid:396)t to. Involves the creation of special benefits for preferred customers patronize the brand: 3rd-party app makers help companies create mobile loyalty programs for clients, brand loyalty programs aim to retain current customers to the extent possible. It costs 5x as much to acquire a new customer as it does retaining an existing one. The role of market position: 3 types: (1) a category leader, (cid:894)2(cid:895) a (cid:373)ajo(cid:396) (cid:862)runner-up(cid:863), & (cid:894)3) a midlevel niche brand. Leadi(cid:374)g (cid:271)(cid:396)a(cid:374)d does(cid:374)"t (cid:374)e(cid:272)essa(cid:396)il(cid:455) ha(cid:448)e to (cid:271)e i(cid:374) the fo(cid:396)ef(cid:396)o(cid:374)t of (cid:272)(cid:396)eati(cid:374)g (cid:374)e(cid:449) p(cid:396)odu(cid:272)ts o(cid:396) upgrading features, but the brand has to introduce new successful features quickly to maintain brand allegiance. Leader has to be selective when adopting new features from competitors since their adoption means that the new features are endorsed by the leader.
