Question

This section consists of THREE (3) questions. Answer ANY TWO (2) questions.

1. “Management of retail organizations carefully design the approaches about their investments into three key areas: customer loyalty programs, customer data, and technologies aimed at making the shopping experience easier, safer and more efficient”. Analyze the above statement by providing explanation on the appropriate strategies that should utilize by online retailers in order to be successful into the key areas as stated above.

2. “Consumers have greater expectations from those online experiences in terms of unlimited selections, instant delivery, transparent pricing and more flexible payments”. Based on the above statement, online retailers also utilizing customer relationship programs to enhance customer satisfaction which in turns develop customer loyalty in the long run. Describe FIVE (5) benefits of effective customer relationship programs employed by online retailers in order to cater the needs of its valuable customers.

3. “An evolving retail business model, with online platforms becoming the shopping malls of tomorrow”. This statement clarifies that online channel being the best choice of the retailers nowadays to facilitate the customer shopping experience. Explain FIVE (5) reasons the store-based retailers seek their sales aggressively via online platform?

Answer 1

1.key areas for online retailers to be successful

a.customer loyalty programmes

Discounts will not be enough to get customers.along with discounts proper planning of customer loyalty programmes should be planned.it includes offering great incentives to customers and also wide range of product and price to choose.customer should come back to buy from online retailer.loyalty should be planned in such a way that customers should spend maximum on a particular online retail company.

There are some online retailers who provide wide range of loyalty services to their customers.for example amazon has online platform of discounts on purchase of maximum products,which it offers to customers.it has the protocol that if customers buy maximum,they will get maximum benefits on orders.

2.customer data

Customer data helps online retailers to build their strong product preference base.they will come to know,which product sells more frequently as a result of the database of customers that they have.because of data collection regarding customers,online retailers can become successful in displaying the products that are frequently purchased and as a result earn huge amount of profit.

3.technology is very important area in which online retailers have to be brilliant and expert.advanced technology would enhance the product features and also product selling would improve.technology is required to develop the graphics,payment process and various other aspects to be enhanced and developed.without proper technology,sales would not increase and company would not be able to earn huge amount of profit.advanced software should be used from time to time for successful development of online retail company.

2.benefits of effective customer relationship programmes

1.to cater the needs of valuable customers,first benefit of such programmes would be high rate of response from customers.this would increase sales and earn the company huge amount of profits.

2.customer will be retained from time to time as they would appreciate the effort of various schemes and would want to buy more products.

3.with great offers and incentives,customers would be willing to spend maximum.

4.with complementary facilities.for example during festival time,huge discounts and credit scheme helps increase customer loyalty.

5.helpful policies such as cancellation and return of products within stipulated time will earn great loyalty from customers,as a result of which sales and profits will increase.