Re-positioning customer loyalty in a fast moving consumer goods market

Abstract

In the fast moving consumer goods (FMCG) market much of the customer loyalty operations are carried out with a short-term perspective, which often result in weak customer loyalty. Besides this, the one-sided view of customer loyalty and how to work with customer relationships, further adds to the challenges and there is a need to promote new insights and practices into customer loyalty in FMCG markets. In an attempt to broaden the view of customer loyalty, the authors take an organizational human resource perspective and present a conceptual framework and model built on human resource literature. Many companies face the exact challenge with high employee turnover, as it is associated with costs of recruiting and training, suggesting that customer loyalty becomes a question of organizing the customer as an external human resource. A practical contribution with the conceptual model is the suggestion to learn from the experiences of successful employee recruitment, and employee motivation, when viewing and working with customer loyalty.