Showing posts with label Customer Loyalty. Show all posts
Showing posts with label Customer Loyalty. Show all posts

Thursday, May 27, 2010

Brand Community


A brand community is a community formed on the basis of attachment to a product. Recent developments in marketing and in research in consumer behavior result in stressing the connection between brand, individual identity and culture. Among the concepts developed to explain the behavior of consumers, the concept of a brand community focuses on the connections between consumers. A brand community can be defined as an enduring self-selected group of actors sharing a system of values, standards and representations (a culture) and recognizing bonds of membership with each other and with the whole.

Marketers in a variety of industries are trying to increase customer loyalty, marketing efficiency, and brand authenticity by building communities around their brands. Few companies, however, understand what brand communities require and how they work. For instance, many managers think of a brand community in terms of marketing strategy. In fact, for a community to have the greatest impact, it must be framed as a corporate strategy. Another common misconception is that a brand community exists to serve the business. An effective brand community exists to serve its members, who participate in order to fulfill many kinds of needs, such as building relationships, cultivating new interests, and contributing to society. Strong communities work to understand people's needs and to engage participants by offering a variety of roles. Finally, managers often think that a brand community must be tightly controlled. In reality, a robust community defies managerial control.

(Image source: Metaphorstudio.com)

Wednesday, December 23, 2009

The Battle for Customer Loyalty


Despite the sea of changes taking place in the retail sector, some stability has also been observed. Though retailers still have to struggle to out shine their products as compared to their competitors, differentiation strategies that focused on some combination of product offering and price-point are becoming extinct. Increasingly, the only battleground left is the war for customer loyalty. Today's retailers are in a great catch 22 situation where they have to cope with modern retailing. In order to drive customer loyalty one not only requires the right product offering at competitive prices, but also requires increasing customer satisfaction while keeping a control on the operating costs. While retail has always been completely service and customer oriented, the reality is that now profitable retailing revolves around the performance of the retailer's greatest controllable expense and most strategic asset - its employee workforce.

Demand-Driven Workforce Management gives retailers the means to control this strategic asset and increase store profitability. By balancing all the demands that affect the workforce, from corporate headquarters and customers to employee preferences and production requirements, retailers can streamline functions to more closely align labour costs with variability in its demand. Moreover, aligning the workforce more closely with demand is vital for rising customer loyalty and gaining market share over competitors.
(Image Source: Wholesalefloral.com)