Higher Customer Loyalty Research Articles

Cross-selling models for telecommunication services

Cross-selling is a strategy of selling new products to a customer who has made other purchases earlier. Except for the obvious profit from extra products sold, it also increases the dependence of the customer on the vendor and therefore reduces churn. This is especially important in the area of telecommunications, characterized by high volatility and low customer loyalty. The paper presents two cross-selling approaches: one based on classifiers and another one based on Bayesian networks constructed based on interesting asso- ciation rules. Effectiveness of the methods is validated on synthetic test data.

Customer loyalty card programmes and its interaction with support technology in the retail industry

This paper will explore customer loyalty cards and significance to technology and Customer Relationship Management (CRM), as well as privacy and security issues, customer loyalty, competitive advantages for retailers and consumer, reward programmes, and education on the programmes. Two surveys, a pilot study of 50 and a more comprehensive survey of 257 college-educated, professional individuals from the Pittsburgh SMSA, were conducted to determine it retail establishments that use customer loyalty card programmes, such as a frequent shopper card and customer support technology, namely self-serve checkouts have better retention rates and higher customer loyalty. Factor analysis, multiple regression and principle components were the major statistical techniques used, resulting in six factor-based scores constructs with significant combined variance (cumulative variance of 60.354%). Hypotheses-testing predicting total money spent and specific recommendations are included.

Can Effective Human Capital Management Lead to Increased Firm Performance?

The objective of this paper is to study the impact of human capital resources policies on firm performance. To that end, we formulate four hypotheses which rest on the argument that effective human capital management can lead to increased firm performance. These hypotheses are tested by using a new indicator of human capital, as well as two other measures, namely Tobin's Q and total return to shareholders (TRS). The empirical results, derived from a survey carried out in the year 2000 to senior executives working in 405 North-American firms, indicate that effective human capital management leads to higher employee satisfaction, which, in turn, implies higher customer loyalty. Moreover, we have also found that this higher customer loyalty implies better firm performance in terms of both Tobin's Q and TRS.

Evolution and revolution in the twenty‐first century: Rules for organizations and managing human resources

AbstractChanging organizational critical success factors, new expectations for human resources, and the changing roles and capabilities of HR professionals are discussed here. The authors envision that today's top HR job encompasses: enabling capable and courageous leadership; building a very strong and adaptive organizational culture; strengthening organizational productivity and performance; fostering creative innovations, products, and solutions; and building exceptionally high customer loyalty. They explain why and show you how this is done. © 2005 Wiley Periodicals, Inc.

Determinants of Customer Loyalty and Financial Performance

Recent research in accounting advocates nonfinancial measures of company performance, such as customer satisfaction and loyalty, as useful indicators of aspects of firm performance. But what are the drivers of customer satisfaction and loyalty? We provide an integrated causal model of company performance in the personal computer (PC) industry that simultaneously tests links between product value attributes resulting from business process performance, customer loyalty, and financial outcomes. Our results extend prior accounting research (e.g., Banker et al. 2000; Ittner and Larcker 1998) in two directions: (1) by explaining the determinants of customer loyalty, and (2) by clarifying the relation between customer loyalty and measures of financial performance. We report that product value attributes directly and differentially impact levels of customer loyalty as well as prevailing average selling prices. Furthermore, measures of customer loyalty explain levels of relative revenue growth and profitability, and relatively high customer loyalty engenders a competitive advantage in the PC industry.

Impacts of information management on customized vehicles and after-sales services

Original Equipment Manufacturers (OEMs) and their suppliers are confronted with a paradigm shift from Variant Production to Mass Customization. In contrast to variants, mass customized vehicles are configured according to each customer's individual requirements and, nevertheless, are sold at a price comparable to standard vehicles. In order to economically offer customized vehicles and after-sales services, OEMs and suppliers must closely cooperate and apply appropriate information management approaches. Starting with an overview of interconnected business processes between an OEM and supplier, the focus of this contribution lies on grasping customer's requirements as well as generating and utilizing a customer's profile. Consistency of customer's requirements is checked by car configuration and simulation tools. Subsequently, the individual customer's order is transferred into the OEM's and supplier's data management systems. In addition to data generated during the order and production process, the customer's profile is supplemented step by step during car use. Based on a detailed customer's profile, individualized after-sales services can be offered which fulfil each customer's unique requirements and thus significantly contribute to the company's revenue as well as to high customer loyalty rates.

What Makes People Visit Internet Stores Again? Customer Loyalty for Purchase Involvements for Electronic Commerce

Retaining customer loyalty is crucial in electronic commerce because the value of an Internet store is largely determined by the number of its loyal customers. This paper proposes a multi-phased model of customer loyalty for Internet shopping, which takes the characteristics of the Internet and cyber shopping into consideration. In order to validate the model, we conducted a web-based survey of the customers of various Internet stores, and the data was processed using structural equation modeling analysis. The results indicate that several factors can effectively increase customer loyalty towards an Internet store and that the relative importance of the identified factors varies according to the level of involvement with the product purchased through the store. We suggest several managerial implications in developing Internet stores for higher customer loyalty based on these results.