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Showing posts with the label e-loyalty

E-Satisfaction and Social Interaction Create E-Loyalty

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Retailers and service providers are moving online in an attempt to raise their financial performance. The online world has some different methods of marketing that help to retain customers. In the online world where there are low switching costs companies will need to spend a greater portion of their efforts on customer retention.   A study by Christodoulides and Michaelidou (2011) helps better understand what companies must do to create e-satisfaction and e-loyalty.  Companies spend nearly double the amount of their budgets on new customer acquisition while spending half that amount retaining existing customers (Forrester Research, 2008). As a general rule, the cost of gaining new customers is about five times the cost of retaining current customers (Strauss, et. al. 2006).   The existing customers have long tail value and should receive greater emphasis in future strategic considerations.  How e-companies retain their customers is an important consideration for boosting

Developing E-Loyalty through Websites

Websites are a major source of commerce and revenue in today’s business world. Business without websites suffer loses of potential revenue and fewer market share prospects. It  isn't  only those without websites that are losing but also those who have poorly designed websites that suffer from a lack of loyalty. Developing e-loyalty can reduce lost customer revenue and increase customer satisfaction drawing more revenue into the future. All websites should be well designed and planned out. Designing entails, “ the process of creating an artifact with structure of form which is planned, artistic, coherent, purposeful and useful “(Cato, 2001). When the website is designed well it will be both aesthetically appealing to the customer as well as provide two way communication features that develop solid relationships (Ramani & Kumar, 2008). Customers should be able to enjoy the experience of engaging with the company on their website, have their interests maintained, and b