Customer Loyalty Essay

2524 words - 11 pages

Nowadays, competition between companies is more vigorous and it is not easy for a company to keep a customer. In certain circumstances, customers are the key factors to any business. Many companies have used different methods to develop relationships with their customers. According to Rigby and Ledingham (2004), senior executives have become considerably more enthusiastic about Customer Loyalty. It has gained popularity in many industries and become more important. It is definitely not a new approach for business. However, the world keeps changing and technology keeps developing. Therefore, in order to maintain business volume, companies need to keep pace with the new movement in order to ...view middle of the document...

Rigby and Ledingham (2004) agree with the idea as they pointed out that by customer loyalty often show additional opportunities for important business refinements. Finally, increases customer satisfaction so as to increase repeat business, boost sales and retain revenues.

Hong Kong is one of the busiest cities in the world where people are working under high pressure with increasing working hours, which people, with no doubt, are becoming stressful and no business for self cooking. To cope with this situation, dining restaurants found to be an option for time saving and relaxation. Dining out has been one of the most popular activities throughout Hong Kong people, the number of restaurants keep increasing years and years. People nowadays are more demanding with higher expectation on dining experience instead of only food and beverages. They are more willing and able to spend more on dining. As a result, customer loyalty is likely to be the key issues for such a competitive industry.


Marketing has changed from transaction to relationship and this movement makes the management of Customer Loyalty popular. There are many points of views about Customer Loyalty as many people define it in different ways. The keywords “relationship” is investigated first.

Relationship simply requires two parties to involve. For instance, customer relationship may refer to a connection between a customer and the organization. Gummesson (2003) has used relationship to describe the formation of Customer Loyalty. Customer Loyalty is a based on interaction within the networks of relationships. The networks of relationships mentioned here are not only customers but also business partners, although, the main focus is still to be the customers. It is not easy to make two separate parties come together. There should be mutual desire from both parties. From the side of a company, they have to identify customers’ desire at the initial stage. Christopher, Payne and Ballantyne (2002) suggest that relationship is built on providing superior customer value on a sustained basis. Therefore, a complete understanding of what customer value is required before providing and communicating the value to customers.

Why to say Customer Loyalty relies on the concept of relationship? For example, Gummesson (2003) simply states Customer Loyalty as a method of acquiring, retaining and growing profitable customers. Generally, the underlying goal of Customer Loyalty is about maximizing the lifetime value of a customer and developing long-term relationship. The time perspective in relationship marketing is time-consuming but with the same goal as aiming to gain customer loyalty and thus building long term business.

In order to carry out that, organizations have to adopt a customer-centric strategy, they must focus on consumers. McLean (2003) states that Managing Customer Loyalty is a phased process that creates a truly customer-centric organization....

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