Support Loyal Customers as A Strategy in Sales and Marketing: A Focus on Woolworths Supermarkets - Case Study Example

Project Proposal to Identify and Support Loyal Customers as A Strategy in Sales and Marketing: A focus on Woolworths supermarkets By name of the student University Course Lecturer Table of Contents 1.0 Aims, objectives and possible outcomes 3 2.0 Project Background 4 3.0 Data analytics scenario and methodology 7 3.1 Business understanding and problem 7 3.2 Data collection and organisation strategy 8 3.3 Data mining methodto be used 9 3.4 Method of results evaluation 9 3.5 Deployment of results into the business 10 1.0 Aims, objectives and possible outcomes The aim of this project is to study retail industry in order to understand the customers’ patterns of consumption through an assessment of attitudes, behaviours and preferences for selected products with the sole purpose of identifying and supporting loyal customers. To achieve this aim, the project follows the objective, I. To investigate the attitudes of customers Woolworths supermarkets in Australia, II. To assess customer behaviours and preferences in consumption of Woolworths supermarkets and III. To determine ways of identifying and supporting loyal customers of Woolworths supermarket brands, products and services. The data analytics study hopes to find outcomes that include the following: I. There is a positive correlation between customer preferences and brand visibility; II. The behaviour of customers affects future sales of a company products; supporting loyal customers boost image and sales reputation, and; III. Customer attitudes towards products and services have a significant impact on sales volumes. The study also predicts that consumer attitudes, preferences, and behaviours are influenced by customer demographics. The potential application of the anticipated outcomes includes the use of the customer demographics, behaviours and patterns to improve loyalty patterns and eventually sales volumes in the retail sector in Australia. By knowing the customers’ behaviour and preferences, the right products will be availed in the market to enable them meet their demands and expectations. 2.0 Project Background Maintaining customer loyalty has been one of the most difficult things for marketers to attain. However, once customer loyalty has been attained, it is very easy for a firm to expand quickly because it is rich in customer resources especially when the number of loyal customers is significantly high. Loyal customers make repeat purchases and often think of the same retailer whenever they feel need for any goods and services. Earlier research demonstrates that customer loyalty and purchasetrends can be analysed in a systematic way. In this case, goods purchased at different periods by the same customers can be grouped into consequences for the sake of marketing and sales decisions for a company. Methods of sequential pattern mining can then be used to investigate changes in customer consumption or loyalty, and suggest adjustments on the pricing and variety of goods in order to help retain customers and attract new ones. Pricing of the goods will basically depend on a number of factors including the demand and loyalty as well as the prices of other competitive goods. The cost of production will also play a critical role. According to Delcourt et al. (2013), today’s customers require incentive empowerment to earn and develop some loyalty. Factors such as pricing, service promises as well as redeemable rewards need to be accompanied with others to develop and maintain customer loyalty. This paper seeks to find out some of the permanent issues that need to be put in place to guarantee and ensure customer dependency-driven focus. Knowledge, communication coordination and anticipation of needs are crucial in attaining the goal. Happy customers are as a result of brand advocates and therefore brand advocates play a critical role in ensuring that the targeted goals and objectives of earning customer loyalty are attained. Positive reviews from the brand advocates mean more compared to many marketing campaigns. The more they are recognised and rewarded for displaying positive loyalty, the more they will share their experiences with others on behalf of the business. Measuring loyalty however has not been that easy. However, studies such as Delcourt, Gremler, Van Riel, & Van Birgelen (2013) and Chiu, et al (2014) reveal that this can be determined by studying dimensions of customer attitudes and behaviours in their purchases. Mostly quoted measure of customer loyalty is return visits (Bluestein, Michael, & Ronald, 2010). According to Gronholdt, Kristensen, Martensen (2000), loyalty is all about preferential, attitudinal and behavioural responses exhibited by customers over a period of time. These preferences, attitudes and behaviours are created upon specific products and brands, categories and goods (Clarke, 2004). Research by Fang, et al (2014) suggests that loyalty is characterized by a behaviour of biasness whose origin is a psychological process. Nevertheless, Lin et al (2014) intimate that loyalty concerns an attitude that leads to a consistent preference of a product or brand over a sustained period of time which further comes to repeat purchases. Although Oreland Kara (2014) supports the aspect repeat purchases, they also maintain that loyalty customers have a tendency to recommend their favourable brands to members of their reference groups. Positive information to other possible customers will ensure that more customers are influenced to buy the products. As a result, the business will attain its desired goals and objectives. From the short background, it is visualized that customer loyalty is important for retailers of any calibre because they ensure steady performance of business as well as help market the brand through praises and referrals (Gronholdt, Kristensen, Martensen, 2000). This paper therefore insists that it is important to pursue loyalty among customers by studying them closely to ensure business sustainability. Factors that will enhance loyalty are therefore critical in the growth and development of the business. They should therefore be harnessed in the right way to ensure sustainability. It is important to learn from the other worth competitors and employ the best way of maintain the course. It is a general understanding that customer mindset is focused on behavioural causes. Clarke (2004), points out that most of the issues that influence customer loyalty are rooted on human behaviour. It is therefore worth noting that the solutions also lie in the nature of human behaviour applied. The paper will find a way of integrating the engagement of the customer to influence and initiate the required loyalty. Social marketing roots on behaviour change and among the key challenges of marketing through social media are to ensure a perceived value for the client with an aim of maintaining positive behaviour. This in turn will cement customer loyalty. If beliefs, perceptions, attitudes, among other influence behaviour then a lot of effort need to be put in place to maintain the positivity of the above factors. Integrating the above factors is a prerequisite in effective marketing programs as well as behavioural change. According to Bluestein, Michael & Ronald (2010), the approach is likely to give way to efficient and effective brand positioning which eventually results into brand loyalty. Woolworth, as a leader of the retail market in Australia will need the services of policy makers to drive positive policies and ensure that the goals are attained. This paper will critically look at the theoretical development in social marketing that will enhance customer loyalty. Customer engagement found within the social marketing context to influence marketing programs is perceived as brands through which loyal customers can relate to sell the positive agenda of the business. 3.0 Data analytics scenario and methodology 3.1 Business understanding and problem Generally, Woolworth is a leader of the retail market of Australia which gives it the capability to of high visibility to exploit other potentials in the market because of plenty of moreso technological, and human resources. This is however shuttered down by external conditions that dictate minimization of carbon as well as adopting sustainable packaging methods cost effectively in order to reduce food waste. The government has also been restricting the company’s high pricing policy. This hampers its growth and particularly the loyalty of its customers. Highest potentials for the company are in computerization, changes in customer lifestyles and supply chains which enables growth because all retail sector players are affected. Therefore, a multi-option strategy would help cope with the customers changing needs. Coles supermarket is the biggest competitive threat for Woolworths. All these in a way affect customer loyalty and volume of sales subsequently. The data analytics tasks include collecting rich demographic databases of customers of Woolworths as well as customer profiles in terms of shopping behaviour, attitudes and preferences in order to adapt a workable competitive strategy to attract and retain important customers to the business. Measures need to be put in place to ensure that the goods provided for the customers meet their needs and expectations. Efforts to stay above other competitors are critical for sustainable growth. 3.2 Data collection and organisation strategy In this project, quantitative and qualitative data will be collected to understand behaviours, patterns and attitudes of customers towards Woolworth retail outlent in a move aimed at improving customer loyalty and sales volumes within the retail outlet. Quantitative data analysedemographics and transactions history data, for example goods purchased at different times, which is already available in databases. This will identify shifts in customer loyalty patterns. The project will also collect qualitative data on attitudes and behaviours of customers to find out the preferences, attitudes and underlying reasons for the same. This data will explain current loyalty trends and generally advise on best ways to improve loyalty patterns from customers themselves in a move to retain and attract new customers. Qualitative data collection will however be limited to customers with loyalty cards. The likely possible outcomes would be as follows: i. Demographic characteristics influence loyalty patterns ii. Transactions history will reveal gaps in consumer behaviour and perceptions hence loyalty status analysis iii. Qualitative data will show feelings, perceptions and attitudes towards Woolworths brand to warrant suggestions in pricing, packaging and stocking strategies of importance in maintaining loyalty. 3.3 Data mining methodto be used Data mining will be based on qualitative and quantitative methods. Quantitative methods will be based on available datasheets and databases especially on transactions history and demographic characteristics. Qualitative data is however non-existent and will be based on brief structured interviews of selected customers found at the shopping malls of Woolworths. Structured interviews will be written entirely with open ended questions to assess the attitudes of customers about the company through a series of related questions. 3.4 Method of results evaluation Quantitative data will be based on SPSS analysis of existing databases only. In this analysis, data will be used to generate frequency distribution tables and graphs that indicate significant trends helpful to the business. Correlations, ANOVA and regression analyses will be used to identify the confidence intervals and levels of significance of the variables to customer loyalty. Qualitative data will be analyzed thematically by grouping related information and observing content frequency and relevance. Clustered topics will then be assessed in relation to the impact on loyalty and performance of Woolworth’s supermarket. 3.5 Deployment of results into the business Results from quantitative and qualitative analysis will be assessed in terms of loyalty to assess any significant relationships with loyalty in order to make relevant recommendations that would help Woolworths to identify loyal customers. The study will then suggest to the company best practices to adopt in order to retain and support loyal customers to the business to enhance its growth and development towards the targeted goals. References Bluestein, A., Michael, M., & Ronald, J. S., 2010. The Customer Satisfaction Audit. Axminster: Cambridge Strategy Publications Chiu, C. M., Wang, E. T., Fang, Y. H., & Huang, H. Y. (2014). Understanding customers' repeat purchase intentions in B2C e‐commerce: the roles of utilitarian value, hedonic value and perceived risk. Information Systems Journal, 24(1), 85-114. Clarke, G. (2004). Consumer behaviour and marketing strategy. Journal of Consumer Behaviour 3, 404-405. Delcourt, C., Gremler, D. D., Van Riel, A. C., & Van Birgelen, M. (2013). Effects of perceived employee emotional competence on customer satisfaction and loyalty: The mediating role of rapport. Journal of Service Management, 24(1), 5-24. Fang, Y., Qureshi, I., Sun, H., McCole, P., Ramsey, E., & Lim, K. H. (2014). Trust, Satisfaction, and Online Repurchase Intention: The Moderating Role of Perceived Effectiveness of E-Commerce Institutional Mechanisms. Mis Quarterly, 38(2), 407-427. Gronholdt, L., Kristensen, K., Martensen, A., 2000. The relationship between customer satisfaction and loyalty: cross-industry differences. Total Quality Management, 11, pp. 509–514. Lin, Y., Luo, J., Zhou, L., Ieromonachou, P., Huang, L., Cai, S., & Ma, S. (2014, June). The impacts of service quality and customer satisfaction in the e-commerce context. In Service Systems and Service Management (ICSSSM), 2014 11th International Conference on (pp. 1-6). IEEE. Orel, F. D., & Kara, A. (2014). Supermarket self-checkout service quality, customer satisfaction, and loyalty: Empirical evidence from an emerging market. Journal of Retailing and Consumer Services, 21(2), 118-129. Read More