The challenge of growth in mature markets-Series 4 (Less Advertisement and Direct Relation)

Identification of customer loyalty is a key game in matured markets for the brand values. Banks are the best examples of creating customer loyalty. But India we found radical changes of banking segment where private banks came and changed the culture of customer servicing and created a new brand concept for the customers. PSU banks were compelled to make and adapt to the changing culture later on. Loyalties of customers are now being created through online shopping portals where price competition and discounts or freebies are the key factors behind the customer loyalty segment. Brand has taken a new shape where social networking sites play critical role. In my research I have found the hotel should give some coupon of discounts to its prime clients so that next time they come they get an advance booking followed with an discount being generated from their first visits coupons.

This would create a fixed number of consumers to come to the hotel in case of their visit. They would also help the consumers to plan accordingly to avail the discount of the hotel. This plan would get a wide value in those hotels that have a chain of such hotels present in various geographies. This strategy would lead to significant growth of loyal customers across the board. Loyalty clients need to be recognized and this is one of the best ways of adding value to them. This increases the brand value followed with a significant growth in customer loyalty. Discounts and coupons if used judiciously would create extreme revenue growth in term of brand equity valuation. These are the ways through which direct relationships are being created with the consumers and the relationships are being strengthened. Customer relations increase the effectiveness of brand promotion. Provide direct purchasing and repeat purchasing incentives. However, this last approach has meaning only if it creates long term value: that is, if behavior initially motivated by the lure of an incentive is subsequently transferred to the brand and its products or services. Repeat purchasing is the customer’s way of giving the brand a unique chance to prove itself.

Treating clients as friends rather than just accounts is the long lasting key process of creating brand valuation. One should focus on brand usage which would finally lead to brand multiplication. Loyalty may be a consequence of attachment, but it can also be generated by means of bonuses and so-called ‘loyalty cards’. In my research I have found that if proper data analysis is being made about the consumer then the strategy of discounts and coupons would work extensively. Promotional activities could be designed aligning with the consumers categories and also creating brand valuation. In my research I find that brands needs to strategies where it provides satisfaction to the consumers. Satisfaction and attachment are two different concepts where attachment can be ruled out by any external competition where as satisfaction is the responsibility of the company to provide.