Table of Contents
- The Formation of Loyal Relationship
This report aims to review the marketing theory of Customer Loyalty for the Brand Maybelline New York. Customer loyalty is an effective way to improve a company’s performance. For this essay Customer Loyalty is defined as an integral part of the customer promise, and in today’s highly competitive markets, loyalty is a key objective to secure recurring sales as well as positive reviews and recommendations.
The focus of this paper acknowledges the importance of customer loyalty for many competitive organizations and industries. Basically, a ‘customer’ is an individual or business that purchases goods or services produced by a business. It is customer who creates demand for goods and services.’ Loyalty’ is an old-shaped word usually used to describe faithfulness and keen devotion to a country or an individual. In business situation, it is to describe a customer’s readiness to continue supporting a firm over the long term and recommending the product to friends and companions. ’Loyalty’ – it’s not just a phase…it’s in every phase of the Customer Journey.
Customer loyalty can be defined as benefits or advantage. The lifetime importance of customer is the most vital issue in supporting long term growth of the business. Ideally one wants to build an army of loyal customers who keep coming back. So, you cannot only start a strong customer ground but also nurture word of mouth marketing. The different views relate to a structure for understanding customer loyalty covers customer brand promise, brand acceptance and brand buying. In today’s scenario markets become more competitive and challenging. Many companies cherish the importance of retaining current customers and some have initiated a variety of activities to improve customer loyalty and the benefits associated with it are widely established. These includes lower costs associated with retaining existing customers, rather than recruiting new ones.
Customer loyalty reflects a positive customer experience, customer approval, and the worth of the products or services the customer gets from the deal. This essay relies on the use of secondary information from a variety of academic and non- academic sources.
Every marketer loves to win. Maybelline New York is an American cosmetics company. It was established in 1915 by Tom Lyle Williams. The legendary status in cosmetics industry gained by Maybelline has a story in which T.L Williams named his product as Maybelline because of his younger sister, “Maybell” and “Vaseline”. The cosmetic company is competitive and fast evolving. The company has been committed to make high quality, affordable cosmetics. It strives on setting trends in the world of makeup. It is a world with cutthroat competition where trends and customers are the main attractions. Maybelline inspires women to make a fashion figure, discover new looks and flaunt their own beauty and personal style with creativity and individuality. There were so many fashion figures involved with the Brand Maybelline like Gigi Hadid, Athiya Shetty, Alia Bhatt and many more. Maybelline New York often puts most of its marketing force behind new product launches. Maybelline New York partnered with media agency to launch their Dare to go Nude campaign which is tuned in YouTube.
Customers are the kingpins of the business industry. The market always targets at developing customer loyalty. Customer loyalty is more about keeping clients happy. It’s the key to maximizing profitability. The factors that contribute to the development of loyal relationships is important in industries in which competitions are sky rocketed. There are various reasons why a customer loyalty prevails.
A person develops a sense of devotion to a certain person working for that company. For example, People developed good interactive friendly relations with shopkeeper or social site because they have helped them and assisted them over the years. This type of bonding enhances customer loyalty and it is very difficult to break this love under any circumstances. Sometimes a customer is bound to the company for a certain period due to some agreement. Sometimes a person sticks to a supplier in respect of their supply of the product or other reasons.
But the customer has faith in the company and thinks that the company provides him with more benefits and rewards. Such type of customers buys more, spend more, speak more to their friends, colleague and relatives about the product and benefits. When this type of customer takes product repeatedly and utter good words about the company then he/she may be described a ‘brand ambassador’ or ‘prioritized customer’ or ‘loyal customer’. Sometimes situation arises when a customer can be very satisfied with the deal and still not be loyal.
On the contrary a customer may not be satisfied but wants to show loyalty to the supplier because the customer may be getting some sort of additional benefits. The profitability of selling to an existing customer can range to 60-70 percent but to a new customer it will be 15-20 percent. So, it is much easier to retain an existing customer than acquiring a new customer. An existing customer is having knowledge about the business and they will try new product and services through the owner’s recommendations. The beauty industry constantly changing, and the customer interest is even more driven by the latest and hottest trends than in other categories.
The Formation of Loyal Relationship
The study of customer loyalty appears to be a product of the study of customer satisfaction. Hence to understand loyalty one must first explore satisfaction. Customers showcase customer loyalty when they frequently purchase a certain produce or make over an extended period. For example, many customers stick to a particular shop due to the positive experiences or physical location of the supplier they have had with their products and services.
The companies provide great customer service, so the customers will continue buying or subscribing. But customer loyalty is paramount to brand’s success because loyal customers can grow business faster than sales and marketing. So, Maybelline New York improved loyalty in its cosmetics business, where consumer can use multiple brands for their range of makeup needs. A campaign was developed called “B2Me” which goals at educating customer about choosing and using cosmetic, giving discount coupons and recommend which Maybelline product best suit them based upon their characteristics and personality. The mailing addresses were captured for the loyalty card and loyalty club of Maybelline new York. A loyalty program database enables marketers to evaluate the result of special promotions based on additional buys, use of additional channels or decrease time between purchases.
Maybelline New York is increasing awareness and driving customers to sell through one-on-one beauty consultation. Maybelline New York introduce the Colour Studio Tour- a devoted studio that treated visitors to a remarkable VIP experience. Colour Studio provided customer on-site makeovers and makeup consultation using Maybelline products, exclusive fashion week, free product trials, and coupons to drive to retail. Maybelline New York allure their customers by offering complimentary make up sessions and a communicating Maybelline New York vending machine. They sometimes give fashion week t-shirts and other VIP giveaways. The customers were treated on the set makeovers from professional stylists which lead to immediate sales.
Customers are the blood and soul of an industry. Loyalty should be measured accurately and should be awarded. Loyalty rewards can go from a classic discount coupon or special offer, specialized rewards like performance, pre-release reviews or focus groups. Use digital platforms to ensure about loyalty like email coupons and loyalty points for certain actions. Customer loyalty is not gained by an accident, they are built through the finding and drawing choices. Customers are loyal to Maybelline New York. Instead of targeting all customers, Maybelline New York only needs to target new customers in order to grow their business. Maybelline New York is still working towards loyalty. All the purchases that are happening online is directly through e-retailer site. Maybelline New York is working with shoppable, a register technology, so that visitors can add to cart on the site and complete the purchase, but the order itself is fulfilled by the e-retailer.
The two aims of customer loyalty programs stand out. One is to increase sales revenues by raining purchases / usage levels and increasing the range of products bought from the supplier. Achieving this kind of customers holding is a huge win for businesses. A second aim is more self-justifying – by building a closer bond between the brand and current customers it is hoped to maintain the current customer base.
Loyalty provides many benefits to both the customer and the organization. There are different strategies for developing the loyalty bonds with customers. They are:
- Deepening the relationship – Bundling/ cross selling services, one stop shopping, buying services from same provider.
- Financial bonds: – Discount on purchases, loyalty program rewards (e.g frequent flier miles), cash back programs.
- Non- financial rewards – priority to loyalty card members, higher baggage allowances, priority upgrading.
- Social bonds: – personal relationships, continuous relationship.
- Customization bonds: – customized service for loyal customers, customers can’t rely on other service provider for amenities.
There are some factors which work to the supplier’s advantage to create incremental profits. These are:
- Profit derived from increased purchases, or in a credit card and banking environment. The customers often grow larger and so the need to purchase in greater quantities. Individuals may also purchase more as their family increases. Both the customers can purchase from same supplier who provides high- quality service.
- Profits from reduced operating costs. As the customers are becoming experienced, they make fewer demands to suppliers. They make more use of service options.
In today’s demanding market where establishing and upholding customer loyalty is more multifaceted than it used to be in the past years. This is because of the industrial innovation and extensive use of internet. Loyalty constructing requires the group to emphasize the worth of its creation and facilities and to show that it is attentive to satisfy the wish or build the associations with customers.
The cosmetic brand is an example of a company who does the points-based loyalty program well. Customers swipe their beauty insider card at every purchase, and the card tracks the amount of money spent. Every dollar spent earns the member one Beauty Insider Point, and shoppers can redeem points for beauty supply items at checkout. That Maybelline New York partnered with one of the most distinguished fashion bloggers Kelly Framel started interactive step by step tutorial of four different looks that use Maybelline’s new product.
Consumers are reactive. Consumers have negative reactions when choices that were once available are now limited or when they feel that something is being taken away. There are numerous samples of negative reactions when products were eliminated, or choices were limited. For instance, lipstick covering of Maybelline was changed or reformulated. Sometimes the lipstick or other product is on discount and the stock finishes, or without letting the customer knows the discount slab is changed, or the price is made higher or cheaper.
As the above research findings, Customer loyalty is the key objective of customer relationship management and describes the loyalty which is established between a customer and companies, persons, products or brands. Every company aim to maintain a long-term relationship with customers and organizations. Customers are adaptive and reactive. Customers come to expect a certain level of service, product quality and delivery.
The Maybelline New York industry is related to Customer Loyalty. The industry is active on social media and it thrives on setting trends. Maybelline New York needs to take risk on promotional campaigns, which will spark conversation and show that this company is up to date and interested in what its patrons are interested in. Maybelline will be able to cooperate with customers. It is a great way to maintain public relations and strengthen loyalty.