Loyalty models assist firms in communicating with customers with the hope to retain their loyalty to the brand through certain strategic approaches such as quality, service and reward systems. Due to varied consumer behavior in every industry, it is crucial to capture the heart of consumers so they do not defect easily to competitors.
The first basic approach would be to strengthen the the quality of products offered by the company. The product should be unique that customers cannot buy it anywhere else. If the product is unique or of high quality, customers will be attracted by the innovative approaches as they will become exclusive offerings. These offerings may change customer perceptions on a certain product or brand. Thus, refining the quality of products is a powerful tool in creating a successful loyalty model.
Second, high quality service should also be a main factor in attaining loyalty. Having high quality services can make customers feel special, which may increase their impression to the company. This will not only satisfy customers, but also has the potential to go a step beyond and exceed what customers expect compared to normal. For example, good service is paramount in hospitality such as restaurants, where the number and attitude of waiters/waitresses can be the difference in making customers happy. Ignoring customer questions or avoiding complaints may end up badly for the reputation of the shop.
A very popular but effective method of attaining a high loyalty base is the use of the reward system. Customers have consumption at a company, this company can providing discounts or gifts for them. If a company introduce the reward system,customers will prefer this company to consume and pay more attention to this company. Coles is a perfect example for utilizing the loyalty model within their company strategy. This can be reflected by the offering of the reward system using flybuys, where discounts are made available the more you shop at the store. Therefore, by using loyalty models, Coles has made higher profits to compare with other competitors.
Social media models
Social media models will be a good way to help a company succeed. It focuses on the people who tend to regularly surf online. Methods such as word of mouth and online advertisement and should assist in accumulating profits. In addition, having a robust and sleek social media model may increase brand reputation and influence more effectively than competitors who don’t consider the importance of social media. Since the introduction of web 2.0, the online world has been flooded with new technological software’s known as social media sites. Therefore, creating and maintaining a strong online site is important as it can provide convenience to the customer if done well. Doing this will contribute to the firm’s awareness due to the sheer number of online shoppers in today’s society.
Firstly, word of mouth refers to the spread of information from one person to another within their network. If a person is incredibly happy with a product they bought, he/she will communicate with others online via social media and spread the positive aspects of the product, thus rapidly increasing brand awareness.
Second, online advertising is everywhere. Many consumers like browsing some websites such as Facebook and YouTube, which millions of people have used. As a result, many advertisements like banner and picture ads pop up in a small corner or during video. Consumers will notice and remember advertisements due to the high frequency and unique range. Hence, companies can use the power of social media to raise awareness and flourish in its advertising campaign.
Domino’s pizza is a company that has effectively integrated social media into its business model. Its page on Facebook looks very attractive as it exhibits all recent flavors and new innovative designs for customers to see instantly.