BMGT 411: Assignment #2

Class,

Please respond in the comments section for assignment #2.

Article 2 Review Due and Presentation

  • Topic: Pick a company you feel has great customer loyalty, and find an article that gives examples of how they engage with customers and keep them loyal

Thought starters

  • Have you looked for articles on Google Scholar?
  • What about companies that use loyalty cards?  How does this keep customers loyal?
  • Think about the marketing tactics that engage with customers like direct mail, email, and in store events.  What does your favorite company do to keep you coming back?

Chris Lovett

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6 thoughts on “BMGT 411: Assignment #2”

  1. The NFL, because they have an incredibly loyal fan base by rewarding them with content and experiences that keep them engaged and passionate. For example, the Steelers keep their fans loyal by continuesly putting out a good product out on the field. They have good management. The Steelers have tons of memorability jerseys, and other products such as terrible towels, that people wear in support of them. Some players also will do charity work for the public to give back.

    http://www.nfl.com/superbowl/story/09000d5d81de5548/article/steelers-fans-loyalty-goes-beyond-super-bowl-glory

  2. I picked Amazon.com for a company who I thought had great customer loyalty. The first time that I personally ordered from Amazon over 3 years ago I was very skeptical because of the low prices and the massive amount of products that they have listed. I was nervous that there would have been extremely high shipping and handling costs to make up for the low price that is advertised. I was very pleased when I proceeded to the checkout and there were no extra shipping and handling costs added to my order. Ever since that first order I have been a fairly active Amazon customer. I have even started to use Amazon.com to purchase tools and parts for my towing and auto repair businesses. The prices are often lower than my parts suppliers, Amazon.com gives me a better description, offer free shipping on almost all of the products listed, and the products usually show up a few days earlier than the shipping estimates. Amazon has also made the online shopping experience quicker and easier by storing an existing customer’s information on their account so it only takes about 3 clicks of the mouse to place an order if you are logged into your account. Amazon’s pricing and quick shipping are only part of the reason they have loyal customers, they also offer an Amazon Visa card that has a reward program that is tailored to the Amazon website. Amazon has also started to extend the buying experience by creating Amazon Prime which streams movies and shows through their website, and it is available to returning customers that have set up an account and choose the option to become a prime member. I believe that Amazon.com has done an excellent job of creating customer loyalty and they are now focused on creating the customer experience.
    http://www.rdialogue.com/blog/amazon_loyalty_customer_centricity
    -Matt Gaisbacher

  3. I think Starbucks has great customer loyalty, I mean you would have to in order to stay in business with your product prices so high. Starbucks really emphasizes on their customers experience. I know we talked in last week’s class about how Starbucks employees go through a ridiculous amount of training to just be able to be on the floor and making customers drinks to perfection. Not many other companies to this extent to serve their customers. This is why I think they have such a great customer loyalty base. Also, Starbucks loves their customer’s feedback. They have an ad that states, “If your coffee isn’t perfect, we’ll make it over. If it still isn’t perfect, make sure you’re in a Starbucks.” I think this ad really describes Starbucks and what their service is like. It is really customer oriented which is why their customers keep coming back and not going elsewhere. They want your feedback because without it, how are they supposed to perfect their service and products. My last assignment was about Dunkin Donuts and I stated how they are more for your typical American due to the prices being more acceptable for everyone, but I wouldn’t say that they have better customer loyalty than Starbucks. I don’t think anyone really “craves” Dunkin Donuts specialty drinks the way they “crave” Starbucks. To me personally, coffee tastes the same at either place so I would probably gear more towards Dunkin if I just wanted a plain coffee but other than that, Starbucks has my “customer loyalty.” In the past, they received a lot of complaints about customers wanting WiFi in the shops due to a lot of people going there on their breaks or just to get a different scenery when doing their work, Starbucks listened and now provides free WiFi in their shops. Most coffee companies, Dunkin Donuts for example, focus on getting you in and out with your drink as fast as possible, if your drink isn’t to your liking it would be more of a hassle to have them fix it than it would to just drink it. This is not the case at Starbucks, and for those who are avid coffee based drinkers, perfection is what they are looking for and that is what Starbucks provides.

    http://survey.cvent.com/blog/market-research-and-survey-basics/starbucks-listens-to-customer-feedback-a-case-study

  4. I picked Sam’s Club as a company with great customer loyalty. Sam’s Club operates on a membership only system, with two different levels of membership. The standard level is called Advantage, with a $40 annual cost. The second level is Advantage Plus, at an annual cost of $100. Members with the Plus card can enjoy the benefits of Sam’s eValues program. This is a program that provides customized offers based on members’ buying histories. These coupons are then automatically deducted at the cash register; there’s no clipping coupons and remembering to use them. Sam’s Club sets themselves up for customer loyalty by using the warehouse system where they sell items in bulk for cheaper, but require you to pay to shop with them. By having a yearly cost, it gives members more of an incentive to shop there more often. However, I think that the eValues program gives customers more of a loyalty sense by having customized discounts, which are always a benefit, as the coupons are tailored to items that you are actually likely to purchase.
    http://www.stores.org/STORES%20Magazine%20January%202011/personal-touch

  5. I find that Samuel Adams has one of, if not the best, brand loyalty when it comes to beer drinkers. Although they have just been passed by Yuengling as the biggest US brewery in the past year, there’s no denying that Samuel Adams is not still among the top beer of choice to beer lovers. I think they have grown to be this way not only for the quality of beer they brew, but also because they differentiate themselves from other beers through their marketing strategy. The first thing that comes to mind to most people who hear Sam Adams is there numerous seasonal beers. Now, some seasonal beers do better than others, but their number of different beers give them a wide variety of different clientele. Another way I find them differentiating themselves from there competeition is the way they advertise. Their commercials are much different than those of say, Bud Light and Miller Light. Bud Light and Miller Light focus on connecting their beer with a good time, where Samuel Adams focuses on the quality of beer you are drinking when you drink Sam Adams. There commercial involves the brewmasters in the brewery speaking of how they go about brewing their brand. Obviously Boston is a huge supporter of Sam Adams, probably because thats where the main brewery is, but it has grown to be in the top mix of the top brewery’s in the United States.

    http://www.forbes.com/sites/rogerdooley/2012/09/04/sam-adams/

    The link I added talks about the new glass that they have just released which is supposed to make drinking a Sam Adams that much more enjoyable. And for those who enjoy drinking draft beers, this will make you interested in buying some of these glasses just to see if its really what they say it is.

  6. “The best salespeople are people who build real relationships” – Tony Hsieh, CEO

    What I’ve learned while researching different online retailers is that excellent customer service shouldn’t be difficult to classify or deliver. According to Forbes magazine, the difference between a company that “breaks even” and is “enormously successful” is based on three important attributes: trust, consistency and loyalty. Zappos Inc. is a company that delivers excellent customer service all day, everyday. Their biggest market is to the online shopper, customers who are looking to buy online – easy and hassle free. So what keeps their customers coming back for more? Since the company started, Zappos offers free return delivery up to 365 days after the purchase, no questions asked. This company will go to great lengths to obtain a genuine relationship with their customers.

    http://www.forbes.com/sites/prospernow/2012/04/24/three-attributes-of-enormously-successful-companies/

    http://articles.businessinsider.com/2012-01-09/news/30606433_1_customer-service-zappos-center-services

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