Question

Read Chapter 16 "Using Effective Promotions". Knowing what you have learned form this chapter explain how to build customer loyalty. Describe the promotional mix...how does each of the different elements of the promotional mix influence customer loyalty? Looking forward to a thoughtful discussion!

Answer 1

Customer loyalty is when the customers stick to buying products of a particular brand or company only, irrespective of their price or other competitive factors. They talk good and positive about the brand and recommend it to their family and friends also to increase the customers using it. It is important for any company to have many loyal customers to keep their business afloat and their goodwill in the market strong. To build such loyalty in customer companies follow many ways.

They connect with their customers personally through various social media platforms or through direct contact. This helps them to know the customers better and know what they are expecting from the company in future. The customers also feel valuable to give such feedback and thus feels obligated to keep using their products and show loyalty. Customer loyalty programs can be implemented and rewards in forms of coupons or offers can be given to customers who connect with the brand for a longer time. maintaining a quality that the customer expects every time they buy from the company or recommend someone for it is also essential because once if they feel betrayed in the quality they trust upon, it will directly affect their loyalty towards the brand.

Promotion is the method used to inform customers about a product and make it reach the customers' knowledge effectively. Promotion mix is the mix of all forms of promotion that can be used in the market based on the product, customers and market. The elements of the promotion mix can be advertising, sales promotion, personal selling, direct marketing, public relations, internet marketing, sponsorship, direct mail etc. The elements of the promotional mix help in influencing customer loyalty because promotion itself is a way to connect to the customers and inform them about the products. If done with methods that will influence them personally then it will help in increasing their loyalty towards the product or company.

For instance, personal selling and direct marketing can build relationships with customers that will help in understanding what they feel about the product and provide them with all information they require. This will give them more clarity and trust in the product before buying it. Similarly, advertising can be done keeping in focus the target audience and making them connect to the advertising message which will convince them to buy the product. Offering promotional rewards and discounts to loyal customers through internet platforms will keep the customers loyal and attract new customers to join them and gain such offers themselves. Thus promotion helps in connecting with the customer to inform them about the product and entice them to buy it. If the elements of the promotional mix are rightly used they can help in increasing customers and maintaining the loyalty of the existing customers