Sumary : building loyalty in business markets

BUILDING LOYALTY IN BUSINESS MARKETS

SUMMARY

The reading shows us the types of benefits, the levels of loyalty of the consumers and the types of clients, all the companies must satisfy the needs of the sector that they are directed, that’s why in the text we can see the types of benefits that exist, which are:

• Tangible financial benefits ( all the competition is about the pricewars )

• Nontangible financial benefits ( vendors can also offer customers moneyback guarantees or penalty payments if the products don ´t perform as well as advertise)

• Tangible nonfinancial benefits ( such as corporate the reputations, global scale an innovations capabilities, take time n Money to create, but in commodity markets)

• Nontangible nonfinancial benefits ( it´ssuppliers don´t want to lose loyal customers, they must learn to tell them about the nontangible benefits they provide).

Then we can find the levels of loyalty, which are important to support our old clients satisfied, these they are:

• Grow the relationship: the customer will want to buy more products or services and expand the scoop of its relationship.

• ProvideWord-of-mouth endorsement: the customer is likely to promote the company.

• Resist competitor´s blandishments: the customer is less likely ti switch to rivals.

• Pay premiums: a customer’s this loyal may be willing to pay higher prices for the vendor´s products an services.

• Collaborate: Help the supplier develop new products and services.

• Invest: Loyal customers often invest intheir vendors.

Finally the text show us he types of consumers who are going to originate our income, and this clients decides the time they want to prefer us. This are divide in four types of consumers :

• Commodity buyers

• Underperformers

• Partners

• Most Valuable Customers:

ARGUMENTS:

• Building loyalty in Business Markets does not mean to sell ourproducts at lowest prices or becoming friends with the customers, because companies often apply possible marketing solutions without realizing that such strategies or solutions only make difficult the retention or acquisition of profitable customers.

• In order to create loyalty in business markets, a company in a business market must manage customers individually by showing how great anduseful its products are for they, it means that customers in general are different, so they deserve different treatment for each one, a personalized treatment. It will make that customers feel they are more than important because they are receiving a unique and special treatment.

• It is very important to inform or tell the customers about the non touchable benefits that our products couldgive, and all the positive things that the company will receive. The author of this article has develop a tool called a loyalty ladder, wich helps a company determine how much money and time they have in order to spend on relationchips with all the customers. Thanks to this tool companies can know how customers display their loyalty in a predictable way.

• When a company does things wellsuch as understand that each customer needs a customized product, quantity or price, this company obviously will become successful, thus the loyalty between company and customer will appear, and we will finally understand the loyalty.

OPINIONS :

- This reading shows us how important is to satisfy the costumers not in a short time, but to create the insight costumer, which means thesymbolic connection between the consumer and the product / service.

- Most companies focus basically on the price of a product instead of the quality which is more important. So, what happens is that the companies that focus on the price, don’t focus on the quality, and then is when the costumers stop buying or using their products/services. In the other side, companies that first focus on the...