GLAMORGAN BUSINESS SCHOOL
ACADEMIC YEAR: 2008-2009
MODULE TITLE: Research project
MODULE CODE: BS3S01
STUDENT NO: 08196311
Lecturer: G. Branch/ M. Staples/ J. Pike/ N. Jones/ D. Lloyds
1. Relationship marketing
1. Focus on customer retention
2. Orientation on product benefits
3. Long time-scale
4. High emphasis on customer service
5. High customer commitment and contact
Relationship marketing theory was developed in 1980s. The benefits of relationship marketing theory include saving promotion cost, increasing sales revenue, reducing price sensitivity, and strengthening the brand and corporation images. Relationship marketing theory is widely applied in airlines, hotels, supermarkets, automobile sales, retail shop and online sales. The common practices of relationship market include membership club, store cards, and multiple-purchase discount cards and so on.
The retail industry is a fast changing and dynamic sector. The new business trends are updated with each passing day. The innovative style, satisfied shopping experiences, competitive price, all these factors attribute to the success of a retailer shop. How to retain customer is an important issue for retail operators.
Mothercare provides the best example as it focuses on a variety of factors to ensure customers have the best shopping experience and are given comprehensive product information at a competitive price. They focus on relationship marketing factors to help achieve growth
1.1 Focus on customer retention.
Getting new customers costs 5 times more than satisfying existing customers. The average company loses 10% of its customers every year. Mothercare provides very high quality induction which concentrates on providing very high standard of customer service and the various methods of satisfying the customer’s needs. The training is on going and every six month the staff are given refresh...