Customer Loyalty Programs as a Marketing Tool in Growing Business Free Essay Example

Nowadays, in this of major competition, businesses continuously look different ways to stay competitive. Marketing is the most significant function in a company. One of the most important tasks of a business is to increase the marketing budget to gain new customers. However, from the clients that you already have, you can get much more benefit than being in a constant search for markets. Therefore, after a successful deal, the business not just to rush in search of more and more new customers, but to consider how to continue the cooperation with the existing customers.

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The companies need to find a way to turn them into permanent customers. Many experts are inclined to conclude that the main factor in the success of most businesses is an allegiance of consumers, in other words their loyalty. The presence of loyalty, as favorable attitude of consumers to the company (product, service) forms the foundation for stable sales. Which in turn is a strategic indicator of the success of the company.

According to above reasons the topicality of Costumer loyalty has paramount importance to growing business. It is becoming harder and harder to compete on the quality of products with similar companies, and to retain its position in the market it is becoming increasingly important for the companies to focus on customer service in order to increase customer’ loyalty. The problem of this work is to create loyalty program. Before creating loyalty programs, it is necessary to assess the current level of consumer loyalty to this company.

To do this, the author will need to define criteria according to which the further evaluation will be done. The topic of the evaluation criteria of customer loyalty is particularly relevant today. The object of the study is customer loyalty of \”McDonald\’s\” in Latvia during the period 2016-2018 The subject of the study is to develop a program for improving customer loyalty for the \”McDonald\’s\” in Latvia. The aim of this bachelor thesis is to examine the topic of customer loyalty and identification of criteria for its evaluation. To achieve this goal are set the following tasks:

1. Disclose the concept of Customer Loyalty program.
2. Make the classification of certain Loyalty programs.
3. Identify criteria for creation and evaluation of customer loyalty efficiency.
4. Describe the overall set of marketing tools for development of growing business and its importance to customer loyalty program.
5. Consider the company McDonald\’s, its current position in the market by using the SWOT analysis.
6. Identify and characterize existing Customer Loyalty program in McDonald\’s.
7. Develop and introduce point – based customer loyalty program for greater customer satisfaction.

Nowadays this theme has been thoroughly studied and supported by a series of surveys. Results of these studies are widely used in practice in the marketing activities. Contribution to the study of this issue made by such scientists and also books of the author as: J. Westwood , F.Kotler, I. Sinyayev, A. Jzeleznov, V. Kolpakov, L. Danchenko, N. Tolkachev, S. Zakharov, A. Kibanova and etc. In this thesis work materials from the economic, marketing organization and statistic web sites, were used to give information that is more recent. In the final qualifying work used general scientific (analysis, comparison, description) and special methods of research (collection of scientific sources, collect information, SWOT-analysis, net – promotion analysis, calculation costs of applied customer loyalty program) were used.

Limitations: This research is a thesis for my Bachelor of Social Sciences in Management Science degree in Management and Economics at Riga Transport and Telecommunication Institute. During the given time period of research (approximately 4 months), by the author of this thesis was written work, which comprises Introduction, Analytical and Practical parts, Conclusions and Recommendations, Bibliography and two appendices. Analytical part includes two sub-chapters devoted to an analysis of the concept of customer loyalty programs, its classification, methods and tools for its creation and evaluation in the first sub title, and in the second sub- title is described in detail all marketing methods and tools for successful business development. Besides, all the necessary examples, such as economic calculations and statistical data, are provided. The Practical part consists of five sub-chapters, which include a marketing analysis of McDonald\’s restaurant chain in Latvia. The author of the Bachelor Thesis applied such research methods as methods as a SWOT analysis, NPS index tool, a questionnaire survey method and costs calculation for the loyalty program offered by the author.

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