Introduction
The sphere of goods and services promotion as one of the most rapidly developing sectors requires the active involvement of relevant strategies and techniques providing the assessment of significant factors. Marketers resort to various resources, including both theoretical aspects, for instance, the modern principles of preserving customer interest, and practical techniques related to the introduction of innovations.
Promotional work is the area where consumer participation plays an essential role and largely determines and companies’ policies. This work is aimed at describing such concepts as customer value, satisfaction, and loyalty in the context of marketing management and their benefits for business organizations. Also, the application of the considered terms to a particular company may make it possible to determine the principles of forming relationships with clients and the ways of increasing consumer interest.
Customer Value, Satisfaction, and Loyalty in Marketing Management
The concepts of value, satisfaction, and customer loyalty are important criteria influencing current trends in companies’ operations and governing target asset allocation strategies. It is also essential to note that these terms are interconnected and intersect constantly. According to Xu, Peak, and Prybutok (2015), “both customer value and satisfaction are significant antecedents of customer loyalty” (p. 174). Therefore, each of the phenomena should be considered in more detail concerning marketing management.
Customer Value
Sellers’ resources are not inexhaustible, and their desire to establish contact with customers and thereby ensure a stable profit is justified. For this purpose, as part of marketing activities, measures are taken to assess customer value, the category that, like Ali, Kim, Li, and Jeon (2018) remark, allows identifying a group of buyers with the greatest investment attractiveness and plan further activities based on the obtained indicators. Sellers are interested in the recovery of their investment in relationships with clients; therefore, marketers aim their activities at determining prospects for interaction with consumers and the value of each customer’s contribution.
Customer Satisfaction
The degree of customer satisfaction affects client re-purchase decisions and feedbacks. This, in turn, stimulates demand and contributes to promoting certain products in the market. Xu et al. (2015) argue that this concept “transforms the initial consumption and purchase to post-purchase phenomena such as attitude change, re-patronage, and brand loyalty” (p. 177). An opportunity to influence the preferences of consumers and achieve their recognition opens up significant prospects for marketers, for instance, selling a large number of products, obtaining stable profits, and other positive outcomes of promotional work. Therefore, customer satisfaction is one of the valuable aspects of marketing management.
Customer Loyalty
Customer loyalty involves the commitment of consumers to one brand or a specific product. The basis of this phenomenon is client contentment with the quality of a particular product, its presentation, service, and other aspects that form a positive attitude. The result of this commitment is repeated purchases, and marketers seek to improve these indicators by creating new involvement strategies. Ali et al. (2018) note that the experience gained “can be considered to be a vital determinant of customer loyalty,” and due to modern capabilities and technologies, buyers have an opportunity to appreciate the ingenuity of sellers (p. 2).
The difficulty lies in the fact that competition is the inevitable outcome of any active business. As a result, marketers are forced to make efforts to provide a certain company with a stable client base and, consequently, profits.
Importance of Focusing on Customer Value, Satisfaction, and Loyalty
Since all three considered marketing concepts are closely interrelated with one another, their importance to the success of a company’s activities can be viewed in a general context, although each of the phenomena has its own unique features. According to Chen and Wang (2016), creating a positive business environment means complying with the conditions for effective interaction between customers and sellers to avoid the loss of demand and profits.
The significance of the concepts under consideration is largely due to competition as the inevitable phenomenon of the modern market. In case buyers stop preferring products of a certain brand, their owners will not only lose their potential source of income but also will not be able to hold leading positions, which is fraught with the complete loss of business status. However, if marketers of the company achieve customers’ interest in specific goods and services, as evidenced by ever-increasing demand, such an organization acquires the image of a reliable and strong participant in the business sphere. Therefore, the concepts of customer value, satisfaction, and loyalty should be taken into account when planning a development strategy.
Among the priorities of any company, it is necessary to note the formation of prerequisites for effective relationships with customers. Such factors may include brand awareness and a good image, high quality of goods sold and services provided, product competitiveness, and positive interaction with consumers. As Chen and Wang (2016) state, all these aspects help to ensure that those clients whose needs can be fully satisfied are ready to return to a particular seller.
In this case, a permanent target audience appears, which is of particular value to any company due to the large volume of purchases made. The value of this interaction is also related to the fact that potential clients may get acquainted with the positive experience of other people, thereby increasing product awareness and the success of a certain organization in the market.
Marketers’ ability to retain customers contributes to the financial growth of companies and largely determines business success. When utilizing data about what values are essential for customers at a specific period, what needs are considered to be the most relevant, and on what factors the changes in preferences depend, promotional work specialists can develop appropriate product introduction strategies. Therefore, in the context of marketing management, the considered concepts of long-term customer relationships play a significant role.
The Chosen Company: Petstop
To analyze the given concepts of marketing management in practice, it is possible to review its application in the context of a particular organization. As the subject of evaluation, Petstop will be considered, which is a pet supplies retailer. This area of ​​the market is not overly studied; therefore, the analysis of such an enterprise may demonstrate the effective use of the concepts of customer value, satisfaction, and loyalty in real conditions.
To determine the success of the marketing strategies supported by the company, it is necessary to pay attention to the methods that Petstop adheres to in strengthening relationships with customers and gaining their trust. Also, as recommendations, suggestions can be made regarding potentially valuable methods for improving mutually beneficial interaction. As the background of the analysis, the aforementioned concepts of marketing management will be laid. Based on the existing policy of the company, measures for attracting clients will be assessed in accordance with their relevance in relation to current market trends.
Petstop’s Customer Relationship Management
The terms of value, satisfaction, and customer loyalty are applied quite successfully at Petstop, which allows the company to not only make a profit but also to have a significantly more advantageous position compared to its competitors. One of the features of the organization’s work is the sale of both pets and supplies for them, as well as related goods – cages, toys, and other products.
This principle of operation allows the company to keep clients because they do not need to visit different places, and all purchases can be made in one store, which is very practical. According to Ali et al. (2018), such an approach to ensuring the convenience of customers allows Petstop to retain them and increases their loyalty to the brand. This, in turn, influences the growth of sales positively and enhances the authority of the organization in the market.
Another essential aspect of a well-chosen customer focus policy is the selection of highly professional staff and the provision of services at a sufficiently good level. When buyers realize that the employees of a particular store and all the chain as a whole are interested in selling high-quality goods, trust rises and profits increase. Moreover, the high level of service indicates a competent recruitment policy, which is encouraged by Petstop management.
As Chen and Wang (2016) state, even despite the expansion of the sphere of information communications and the reduced need for sellers, consumers are willing to trust those professionals who can describe the goods sold competently and skillfully. Therefore, this principle of operation allows the organization in question to maintain a consistently high client interest.
One of the most significant factors that allow Petstop to have a consistently large customer base and positive feedbacks is the advantage over its competitors. The company sells products at a slightly lower price compared to other similar distributors.
As a result, the marginal difference in the cost of goods attracts more buyers, providing Petstop with leadership. Chen and Wang (2016) argue that “for service providers aiming to gain a competitive advantage,” the possibility of attracting as many consumers as possible opens up substantial growth and profit prospects (p. 348). Even insignificant discounts allow increasing sales, and as a result, both company representatives and their clients benefit from this fruitful interaction. Therefore, such measures as, for instance, special monthly offers and discounts on certain goods give the retailer’s managers sufficient control over demand.
An opportunity to become an official member of the Petstop club opens up good prospects for any customer. The company has a certain bonus accumulative system, and personal discounts, if desired, can be exchanged for real goods. This option attracts clients and increases their loyalty to the retailer. Additional services, for instance, e-mailing, is an additional marketing tool that is relevant in the era of digital communications. All the considered techniques are the ways of enhancing customer value, satisfaction, and loyalty and serve as effective and valuable tools in achieving the market advantage and, as a result, high profits.
Suggestions on Improving Petstop’s Relationships with Customers
Despite a rather large list of effective practices aimed at attracting and retaining customers, some areas of Petstop’s activities deserve improvement. For instance, to interest consumers even more and provide higher sales, the company’s digital domain needs to be developed more carefully.
The organization’s website can be corrected, and additional features like ordering online services may be added. Developing a special mobile application from Petstop can also be a valuable step towards increasing customer satisfaction and loyalty. According to Xu et al. (2015), free and constant access to purchases through any device is a common practice, and one of its advantages is the significant expansion of the target audience. Therefore, these aspects should be taken into account to improve the quality of Petstop’s services.
Another way of increasing customer interest in the retailer under consideration is expanding the sphere of influence and services. The organization is involved in the sale of pets and supplies for them. Nevertheless, the company’s leaders may also think about additional services that are in demand in the market. For instance, grooming is the procedure that many pet owners apply for, and if the retailer attracts appropriate specialists, additional profits may be obtained.
Another potentially beneficial way of expanding a customer base is animal training. Qualified professionals can offer consumers an opportunity to work with their pets and tame them. Moreover, if animals interact with one another, it will also increase the interest of clients and allow them sharing experiences and positive feedbacks. Therefore, these innovations could be useful for increasing the number of consumers.
Finally, collaboration with other large communities may attract interest in Petstop. Numerous charitable organizations, for instance, shelters and funds to support homeless animals specialize in donations and pet adoption. If the company in question joins their activities, this step will provide it with additional respect from the public. Ali et al. (2018) note that the behavioral dimension of customers is largely associated with loyalty. Therefore, when seeing Petstop’s useful activities, clients will trust the company and use its services willingly.
Conclusion
Such concepts of long-term customer relationships as customer value, satisfaction, and loyalty are the essential factors of successful marketing management. The advantages of these criteria include sellers’ opportunity to assess consumer interest and retain buyers. The economic growth of business organizations, which is carried out due to a constant target audience, is the evidence of marketers’ effective work in relation to all the strategies considered. When using the example of the Petstop company reviewed, it can be noted that significant benefits may be obtained through the effective implementation of client retention principles and relevant marketing techniques. The proposed recommendations can increase the profit of the organization and expand its customer base.
References
Ali, F., Kim, W. G., Li, J., & Jeon, H. M. (2018). Make it delightful: Customers’ experience, satisfaction and loyalty in Malaysian theme parks. Journal of Destination Marketing & Management, 7, 1-11. Web.
Chen, C. F., & Wang, J. P. (2016). Customer participation, value co-creation and customer loyalty – A case of airline online check-in system. Computers in Human Behavior, 62, 346-352. Web.
Xu, C., Peak, D., & Prybutok, V. (2015). A customer value, satisfaction, and loyalty perspective of mobile application recommendations. Decision Support Systems, 79, 171-183. Web.