Feasibility of loyalty-based metrics in customer-relationship management: A case study
Macklin, Brian (2017)
Metropolia Ammattikorkeakoulu
2017
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2017111617232
https://urn.fi/URN:NBN:fi:amk-2017111617232
Tiivistelmä
The objective of this case study was to assess the feasibility of adopting a customer-relationship management strategy which focuses on the maximization of customer loyalty. The assessment was based on the analysis of the statistical relationship between customer loyalty and customer value within the Finnish market of the case company.
The feasibility was assessed in the context of common statements associated with relationship marketing. Primarily, these statements conclude that companies should strive to increase the loyalty of their customers due to increasingly competitive market environments. For companies, the ability to create superior value to customers by forging stronger relationships with them is not only considered a perquisite for survival, but also as a way to increase profitability.
The validity of these statements was tested, and the results were used as a basis for evaluating whether increased customer loyalty increases with customer value within the Finnish market of the case company.
This study was implemented as a quantitative research by using RFM-analysis to evaluate Finnish customers based on two variables; value and loyalty. The evaluation was done based on sales data from 2015 and 2016. Because of the sensitiveness of the information, the collected customer data is not published.
The results indicate that an overall positive statistical relationship between value and loyalty exists. However, due to the limitations of the research methodology, the argument that increased customer loyalty will lead to greater customer value cannot be researched to the full extent.
In conclusion, this research has given valuable information about the composition of the customer base and it will be used to improve customer relationship management activities within the Finnish market.
The feasibility was assessed in the context of common statements associated with relationship marketing. Primarily, these statements conclude that companies should strive to increase the loyalty of their customers due to increasingly competitive market environments. For companies, the ability to create superior value to customers by forging stronger relationships with them is not only considered a perquisite for survival, but also as a way to increase profitability.
The validity of these statements was tested, and the results were used as a basis for evaluating whether increased customer loyalty increases with customer value within the Finnish market of the case company.
This study was implemented as a quantitative research by using RFM-analysis to evaluate Finnish customers based on two variables; value and loyalty. The evaluation was done based on sales data from 2015 and 2016. Because of the sensitiveness of the information, the collected customer data is not published.
The results indicate that an overall positive statistical relationship between value and loyalty exists. However, due to the limitations of the research methodology, the argument that increased customer loyalty will lead to greater customer value cannot be researched to the full extent.
In conclusion, this research has given valuable information about the composition of the customer base and it will be used to improve customer relationship management activities within the Finnish market.