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Tuesday, September 2, 2008

A Satisfied Customer – Will they remain?

Questions has been asked to many people who are involved in business either who owns the business or the person who runs for someone.

The question is “Will a satisfied customer remains?” or “Will a satisfied customer be a loyal customer?” The answer is MIGHT NOT. But why this might happen?

Actually there is a difference between a satisfied customer on your product and your loyal customer. A customer might be satisfied with your product but if we have no good relationship develop between the seller and the customer, the seller one day shall loose the customer who might be in relation to the competitors.

This involves 2 factors:
1. The relationship between the seller and the customer.
2. The seller’s business model – are they adopting the latest business model that is customer oriented instead of product oriented.

A clear case study below would make is very clear and if the attached question is answered, then you would be clear on the issues.

In a small town of Eumundi, Queensland, there is a small Jewelry Shop called Eumundi Jewel. The owner has been traditionally selling the hand made jewelry and the customers have been telling they are happy with the product and services. However in 2007 jewelry shops, Hejja Jewels opens at a few shop lots distance from Eumundi Jewel. The customers are satisfied with the product too and the price seems to be at time slightly cheaper then Eumundi Jewel.

In 2008 early, a survey being made and data found that those customers whose has been to Eumundi Town would visit both Jewelry shops but tend to be loyal to the Eumundi Jewel instead of Hejja Jewels.

It is found that despite both shops had produce a satisfactory product to their entire customer but 2 factors had made Eumundi customers to be loyal to Eumundi Jewel.

Eumundi Jewel collect data from all their customer and send gift on customer’s important dates such as birthday, anniversary and visits to the hospitals if any of the customer is admitted.
Eumundi Jewel also from time to time advice on any drop of gold price which leads to price discounts at their shop. This helps the customer to purchase product at lower price then in certain days of the year or months.
Eumundi Jewel also draws or designs the jewelry sets, ring, and bracelets, in meeting the customer request. Advices are given to customers not only design but also other cost consultancy and this is FOC.

Hejja Jewel fails to do this and hence their customer is not loyal.

7 comments:

Anonymous said...

Eumundi Jewel practice Service Marketing Type of marketing. They gives various services to gain customer's loyalty.

Yes, Eumundi Jewel is using the current practice which is Customer Orientation.

The data found in early 2008 shows that customers do visit both shops because customers tends to try out new shops or product, and yet, Eumundi Jewel still attract their existing and new customers to come back to them through the services they provide.

Eumundi Jewel understands that customers likes to be acknowledge, valued, discounts and well informed. By sending gifts, advise on the price fluctuation and free consultancy Eumundi Jewel shows that they care. Hence, Eumundi Jewel wins customer's loyalty.

- Mohamad Ariff (PDSM)

Anonymous said...

Based on the artical,
Pada permulaannya Eumundi Jewelery mengamalkan traditional marketing tetapi akhirnya dia mula menyedari kekurangan & kelemahan traditional marketing when he realized that the satisfied customer might not be a loyal customer.Eumundi Jewelery kemudiannya menyedari bahawa dia harus melakukan sesuatu apabila terdapat persaingan dengan Hejja Jewelery kerana mereka menjalankan perniagaan yang sama.
He try to do some research and analysis how to find the loyal customers.The loyal customers found when he starts to move using the traditional marketng to advanced marketing.He practices the customer orientation concept,starting to develop a good relationship with their customers.He collects all the data from their customers so that he can knows what the customers need.Eumundi Jewelery also give the added value to their services to make he's jewelery shop using the different type of marketing concept between he's jewelerry shop n Hejja Jewelery.The customer orientation concept will attract a satisfied customers and the loyal customers at the same time.

ADREANI SURYA (PDSM)

zulkufli.umcced@gmail.com said...

I have read both comments from Ariff and Adreani. Both are right and good.

It is true 3 facts to remember in this article:
1. Relationship marketing
2. Customer oriented and hence relationship marketing to be develop.
3. Research must be done prior to the business set up and it should also be done periodically.

In fact that must be done by Hejja Jewel before the start up. On Eumundi Jewel they also need to do some simple research or survey that is 'VOC'- voice of customer.

VOC we could read more in Six Sigma Books on how to do survey. If not just do a simple survey from time to time to understand the customer needs, wants and the changes in their buying behaviour.

Thanks and keep up.

Anonymous said...

Permulaan perniagaan Eumundi Jewelery mengamalkan pemasaran secara traditional tetapi setelah wujud persaiggan daripada Hejja Jewelery dan mereka menyedari kekurangan & kelemahan pemasaran secara traditional plgn yang berpuas hati tidak semestinya akan menjadi plgn yang setia. Perubahan telah dilakukan oleh Eumundi Jewelery iaitu menjalankan pemasaran berorentasikan plgn. Eumundi Jewelery menyimpan segala data berkenaan plgn mereka dan menhargai plgn mereka dgn manghantar cenderahati di hari istimewa mereka serta melawat plgn yang memasuki hospital kerana sakit. Eumundi Jewelery juga memberitahu dari masa ke semasa kpd plgn mereka tentang harga dan diskaun brg yang ada di kedai mereka bagi memudahkan plgn membeli produk mereka pd hujung bulan atau tahun. Disamping itu setiap reka bentuk dan lakaran yang ditempah oleh plgn adalah percuma.
Dengan perubahan pemasaran berorentasikan plgn yg dilakukan oleh Eumundi Jewelery plgn mereka berpuas hati dan setia kepada mereka.

SAHASRUDIN NORDDIN (PDSM)

Anonymous said...

Eumundi Jewel is practicing the current marketing which is Consumer Orentation instead of Product Orentation.They know what the customers needs and wants.

From the moment Hejja Jewels opens at a few shop lots distance from Eumundi Jewel,they understand that to win a long term loyalty customer is not just by satisfied them with the product.They need to go for the customer relationship program.

By implementing this program,they also know that a lot of analysis,research and surveys need to do to drive the customers to their jewel shop instead of Hejja Jewels.

As a result,they come out an idea with sending gifts on customer's birthday and anniversary,update them on the latest news,give advises on the designed ring and ect. they also create a very close relationship with the customer's by visit to the hospitals if any of the customers is admitted.

This is actually a very good example of the extra added services that Eumundi Jewel show in this situation.It proved that service and value is important for them ! They care for the customer needs rather than just doing a business with them.

This is the point why Eumundi Jewel win the long term customer loyalty.

Anonymous said...

Firstly Eumundi Jewel was practicing the tradisional Marketing however he changed to customer oriented instead of product oriented when he realised that a satisfied customer MIGHT NOT be a loyal customer. Eumundi Jewel practices the current practices – customer orientation by thinking out of the box such as collect data from all their customer and send gift on customer’s important dates such as birthday, anniversary and visits to the hospitals if any of the customer is admitted.Besides that he also time to time advice on any drop of gold price which leads to price discounts at their shop. This helps the customer to purchase product at lower price then in certain days of the year or months and draws or designs the jewelry sets, ring, and bracelets, in meeting the customer request.Not only design but also other cost consultancy is FOC.This are the factors had made Eumundi customers to be loyal to Eumundi Jewel. Agilandeswary @ Mira (PDSM)

Anonymous said...

Eumundi Jewel shop pratice customer orientation.Why customer to be loyal of Eumindi Jewel,because Eumundi Jewel shop, creating customer value,providing customer satisfaction and building long term relationship with customer.

He does this, by collecting data from all his customer and send gift on customer important date such as birthday and anniversary,event visit to hospital,if his customer, admitted to hospital.Eumundu Jewel also advice his customer from month to month on price drop of gold.This will help his customer to purchase product at lower price,in certain day of the year.He also providing to his customer extra service,to design the jewelry set,ring,bracelets in meeting his customer request and gives his customer other cost consuitancy.