Loyalty in customer relationship programmes


The retail landscape has undergone a lot of changes in the last 15-years in Mauritius. The mauritian brand 'Super U' was faced with different challenges: new competitors, customers with multiple credit cards, mounting price competition, all  types of loyalty schemes and declining the loyalty. Super U required to react to this changing environment.
 
In response, the shop embarked on a program of smarter customer acquisition and retention and service improvement altogether with strategic cost reduction in its processes and a totally enhanced product at its augmented level.
 
The program needed the redesign of the customer service processes and organization model comprising resizing, a new management structure and a fundamental change program undertaken over two years that is itself part of a longer–term strategy geared for revenue growth on a recalibrated cost based and a robust infrastructure to support the online processes.
 
At Super U, the internet now provides customers, major accounts and global accounts access to information, ordering capability and support services. It enables:
 
a) On line information requests (responding to questions and request for information immediately).

b) Catalogs viewing (the ability to access color catalogs and spec sheets while on-line).

c) Price quotation.

d) Provision of payment.

e) Provision of order status and fulfillment information.

f) Completion of surveys or questionnaires.

g) Customer e-mail feedback.

h) Resellers and channel partners access to information, on-line ordering and support services.
 
The advantages to the customer are clear: sales support for customers; information available 24 hours a day, seven days a week (24x7); real-time order taking and order status; and a cost-effective customer feedback channel. 
 
ANSWER ALL QUESTIONS:

a) Describe the role that Loyalty Programmes play in customer relationship development.
 
b) By using extensive theories, critically describe the effectiveness of loyalty schemes in building customer loyalty in customer relationship programmes at Super U.

c) Describe the challenges that Super U might have had to face in delivering e-CRM to its customers.
 
d) By using the criteria that customers use to assess a company’s channel, describe how far Super U has been able to fulfill the requirements and expectations of its customers.

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HR Management: Loyalty in customer relationship programmes
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