Social Networking and Customer Loyalty, Research Paper Example

Research another social networking Web site or company (different from the one you already researched), and discuss its customer loyalty. Discuss how customer loyalty is linked to competitive advantage

In the face of the highly commoditized competitive environment, customer loyalty has come to be known as the most effective tool for differentiating a business organization from its competitors. Such is the case that the said differentiation serves to drive customer’s loyalty when engaged on a spiritual, intellectual, or even emotional level and in cases where a customer shows preference of service or product prior to, during, and following its use in Twitter.

 Discuss how cost advantage is linked to customer loyalty.

Businesses currently employ sophisticated pricing techniques alongside other valuable soft benefits in coming up with attractive packages establishing a win-win situation and customer loyalty. One of such pricing strategies is the use of price guarantees. In this case, respective companies pay the customer any difference that arises when a product purchased in their outlets is found to cost less elsewhere (Lincoln, 2009). In addition, we have quantity discounts in which case the products price is reduced whenever customers buy gods in large quantities. In all these cases, customer loyalty increased, as customers prefer buying where they benefit more.

Discuss how differentiation advantage is linked to customer loyalty.

An effective product differentiation strategy boosts customer loyalty to particular brands. In this case, strategies used to gain market share through cost savings or perceived quality can significantly lead to customer loyalty. Following this, concerned company should ensure constant delivery of value or quality to consumers if customer loyalty must be maintained. Failure to maintain product quality, especially in a competitive market, may lead to customers turning to a competitor.

Give recommendations of how to improve customer loyalty.

Companies should not only struggle to get loyal customers, but also find a way to improve their loyalty if they have to maintain the leading role. The following are some of the ways to keep improving customer loyalty. First, companies should differentiate their business from the competitors. This can be done through content marketing, an approach that furnishes the companies loyal customers with valuable information to help them resolve their problems and in turn develop their businesses (Customer Care Excellence, 2010). Companies’ content should seek to differentiate its brand and always communicate its leadership place in the industry. Secondly, the company should offer value beyond services and products. Customers satisfaction follows the company’s efforts to make their living better, and thus going an extra mile to serve the customer after purchasing a product would prove beneficial in improving his/her loyalty. The third approach would be staying in touch with customers and being proactive (Clapperton, 2010).

This would take in efforts to stay in the same page with customers by establishing consistent communication. For instance, creating a blog devoted to each buyer personality or outstanding communications to customers following a publication the company know it is of interest to them (Peacock, 2011). Lastly, the company can create a personal connection with customers and providing exceptional services and products. This follows the idea that customers also want to bring about a trusted, mutually useful relationship and establish a personal connection with their company partners.

Give recommendations of how your company can sustain customer loyalty

In order to sustain customer loyalty, the company will perform the following. First, we will establish and further enhance loyalty intelligence systems that will offer tips on how we can customize our services for each customer. Secondly, the company looks into the possibilities of Refining the organizational infrastructure to embrace the ever change customer preferences. Thirdly, we will undertake consistent analysis to find out how well our team is works to strengthen customer behaviors elicited. The most important thing is to establish the capabilities of our team, tools, and process the ability to meet customers’ value.

References

Clapperton, G. (2010). This is Social Media Tweet, blog, link and post your way to business success. Hoboken: John Wiley & Sons

Customer Care Excellence. (2010). Cambridge, Mass.: Kogan Page

Lincoln, S. R. (2009). Mastering Web 2.0: transform your business using key website and social media tools. London: Kogan Page

Peacock, M. (2011). Drupal 7 Social Networking. Birmingham: Packt Publishing Limited