Essays on Loyalty Program for BHP Billiton Company Case Study

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The paper "Loyalty Program for BHP Billiton Company" is a good example of a marketing case study. It is critical for the marketing department to increase to profitably of an organization and it must be capable of measuring and demonstrating its contribution to revenues, in spite of a common delusion that marketing practices are a cost centre, and not a profit centre (Cook, 2002). However, time are changing and the marketplace is also changing; consumers are turning out to be more demanding, while competition is turning out to be more strong.

According to Goldstein (2009, p. 11), marketers are finding it hard to satisfy customer needs, and have to invest more in research and development to understand customer needs and also to be able to differentiate their products from their competitors. However, this is not enough, and marketers have to devise new ways to retain existing customers and also attract new ones (Bogomolova, Romaniuk & Sharp, 2009, p74). Therefore, this report explores the Customer relationship management (CRM) through a loyalty programme which BHP Billiton Company uses, the benefit of the loyalty programme and perceptions of customers towards such a program. 2.0 Literature Review Today, the business environment has changed tremendously not like it used to be 30 years ago.

Customer needs and wants are many and difficult to satisfy (Goldstein, 2009, p11). Organizations must not just be seen to provide basic goods and making a profit, but must also be involved in social and cultural activities that affect the human race. Similarly, they must also develop retention programs for existing and new customers. According to Kotler & Keller, (2006), the most significant component of customer retention is the integration of loyalty programs into normal business practices of an organization.

Some organizations such as BHP Billiton Company have boosted their customer attraction and retention through effective corporate social responsibility. It believes that business is not only earning its profit but also responding to social factors affecting society. After all, the business operates within society. An effective program must be simple to introduce, maintain, sustain and well managed to deliver immense and outstanding benefits to the organization (Cook, 2002). It should also have the power to change the business into a consumer-centric profit machine.

The number of businesses adopting loyalty programs has increased greatly in 2013, though some initiates are raising the bar higher for others in the mining sector industry. Through creativity, charity, and general effectiveness, these organizations are improving customer loyalty to the roof by providing fantastic means to reward and thank their customers (Goldstein, 2009, p. 13). Some of these loyalty programs that BHP Billiton Company ought to introduce include redeemable rewards, loyalty and discount points, Non-monetary rewards, and customer loyalty joint ventures and partnerships. 2.1 The benefit of loyalty programs 2.1.1 Redeemable rewards, loyalty and discount points This refers to the special “ points system “ that is extended to the consumer.

This approach follows that the more the purchases a customer dose the more the points he or she earns. These points can be redeemed later for free discounts, promotions and even goods. It is important for BHP Billiton to reward your client in a professional manner by stimulating their passion for creating and collecting the emotional affinity to the company’ s brand. This builds a perception of additional value leading to extra purchases, improved sales and profits.

BHP Billiton Company, for instance, can create a card from their petroleum product to indicate how much a particular purchase when he comes to buy and how many times he the person purchase in a month.

References

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