Executive SummaryThis paper explores customer loyalty and relationship marketing the 7-Eleven Stores Pty. The paper first defines customer loyalty and relationship marketing within the context of marketing theory as a shift in marketing organization’s emphasis from product and process to building relationships with immediate customers for competitive advantage. The paper also reviews evidence from literature on the effectiveness of CLRM strategies. The paper then examines some of the customer loyalty programs and relationship marketing strategies implemented by 7-Eleven. These include 7-Eleven fuel cards and various product offers to repeat customers on products from 7-Eleven proprietary brands such as Slurpee.
These CLRM strategies have propelled 7-Eleven’s success as one of the world’s foremost convenience store franchises. The paper recommends that 7-Eleven should streamline its data collection on loyal customers and enhance sharing between franchises to enable customers enjoy uniform benefits from as many franchises as possible. Introduction 1.0 Background7-Eleven is an international chain of convenience stores, operating under Seven-Eleven Japan Co. Ltd, that is owned by Seven & I Holdings Co. of Japan. This franchise is the world's largest operator, franchisor and licensor of convenience stores operating more than 39,000 outlets.
It began when an employee of Southland Ice Company, Joe C. Thompson, started selling milk, eggs and bread from an ice house in the US later on growing into a fully fledged corporation that mainly sold groceries due to the discovery of ice as a suitable preservative. The name 7-Eleven originated from the fact that the firm operated from seven in the morning to 11:00 pm which was an unprecedented venture at the time. Most stores would close early and would not operate over the weekend leaving customers with the challenge of travelling longer distances in search of commodities. 7-Eleven stores sell gift cards including prepaid VISA cards, it also sells daily newspapers, drinks, confectionery, and snacks; pre-prepared food such as sandwiches, wraps, pies, sausage rolls under the brand 'munch' which are sold while still fresh.
7-Eleven stores have also partnered with BankWest and have BankWest ATMs in all of their stores. Every year, on 7th November; one small cup of free Slurpee is given to each customer in honor to Seven Eleven Day.
(November is the 11th month which makes it 7/11Scope and Aims In view of these, how does the company run its CLRM? What means can be employed in order to enhance its CLRM? Our main objectives will be to explore 7-11 Stores Pty limited’s strategy for CLRM and finding out the alternative avenues for enhancing its CLRM with a view to coming up with recommendations. The first 7-Eleven in Australia opened on August 24, 1977 in the Melbourne suburb of Oakleigh. It currently runs 565 stores in the Victoria, New South Wales and Queensland mainly located in the metropolitan areas, particularly in CBD.
This study will thus focus on the Australian subsidiary of the firm. In this paper, sources of data will be secondary sources i. e. books, journal publications, and online sources. CLRM is a strategy that has been used by 7-11 Stores Pty limited for a long time. This has seen the company expand its market presence through and through. However it is important to explore the strategy employed by the company in order to understand the successes, loopholes and other options unexplored which could be useful in the future.