Question

Find a company that has done a good job of creating customer loyalty and outline how they have done so and what they can do to improve going forward. How have they measured customer loyalty. (Need explanation and example please).

Answer 1

The example of such a company is Starbucks that is not only well known for its Coffee chains, delivering high quality Coffee products under the different names, but also it has implemented sustainability across the value chain. It has created sensitization among its customers and loyalty have been developed among the consumers. When Starbucks put a slightly higher prices than the market price, then it has the valid reasons that it preserves environment, care for the farmers in less developed countries and use those ingredients that deliver value to the customers. It brings awareness among people regarding the good work being done and customers become loyal, even if they are paying higher prices. But, they know that it is going for the right cause. It is measured in terms of the growing number of customers base, returning customers and fan clubs for the company.

Here, company can improve it, by doing for those people where it  is not operations. It can be done by working on community development programs in those Asian or African nations where it is not present. It will develop brand and local acceptability even before the company steps in the market with its coffee chains.