Verhoef & Leeflang (2009) assert that customer retention is more difficult and involving than the acquisition of a new customer. This is true, especially considering that competition is quite stiff in almost all industries. The case is no different in the confectionery industry. Cadbury, arguably the largest organization in the confectionery industry, controls 70% of the market. The organization is currently concerned with customer retention, customer loyalty, and customer churn and lifetime value relationships. In so doing, the organization has come up with a number of strategies to ensure attainment of the abovementioned goals. Most of the primary strategies adopted by the organization in maintaining customers revolve around the eleven C’s of relationship marketing. According to Gordon (2008), the 4 Ps have no place in contemporary relationship marketing.
Cadbury has always endeavored to offer value to its customers. This is one of the most effectual strategies aimed at winning the loyalty of the customers since it brings out an organization as an entity that cares for the needs of a customer (Palmatier et al 2007). As a way of creating value, Cadbury offers parking and playgrounds for its customers. Speaking of Birmingham Cadbury, there is ample parking for the customers that drive, and playgrounds for children that visit the place. Such extra services and facilities make the customers feel catered for, and this marks the beginning of their attachment to the organization.
Peck et al (2012) explain that strong brands win customer loyalty more easily than ordinary brands. Schonborn (2011) recognizes Cadbury as a super brand. By super brand, it means that the organization has sought to make its brand name outstanding as a way of psychologically influencing the customers to believe that it is, indeed, the best option. Using a strong brand name, coupled with quality has seen Cadbury stand out as an undisputed market leader in the industry of confectioneries. This makes all existing customers develop emotional attachment in such a manner that they cannot easily shift their interests to a competitor.
Modern gurus in marketing argue that one of the most potent strategies aimed at strengthening the relationship between a customer and the organization is establishing a reliable website, through which customers, both existing and prospective, can obtain information and updates relating to the products of the company (Little and Marandi 2003). Cadbury has a reliable website, which was established in the year 2009. The website, which was made using the MOSS web builder, is easy to update and access. Customers launch their complains through the website and access information on all necessary updates. The website is among the most informative resources of the organization. Proper communication interfaces such as the websites and blogs have made the organization effectively manage relationships with customers.
According to Henning-Thurau (2000) customer events are among the most effective ways of establishing emotional attachments in the customers. Since the early days of its existence, Cadbury has always endeavored to organize a number of client events. Among the most notable examples is Purple Planet event that took place in 2006. In the event, customers were allowed to engage in various fun activities after which, they were awarded accordingly. Such events create a platform for the organization to make the customers feel affiliated to the organization through the interactive forums. At the events, Cadbury exhibit different products that they offer. Additionally, they give the customers such gifts as T-shirts with the company logo and a number of product images. These makes the customers become advocates of the organization. Additionally, such company gifts give the customers a sense of belonging (Rauyruen & Miller 2007).
During the 1990s, it appeared like the organization had an appeal for adults only. During the late 1990s, the research and development team came up with the plan of designing their products in such a manner that they could attract the potential market in children. This made the organization design new products that were appealing to children in the sense that they were designed in colors and shapes that were remarkably associated with children. Such products were sold in retail outlets referred to as gift shops. The term gift made the customers perceive the organization as an entity that was not only after profit maximization but also mutual satisfaction (Bhattacharya & Korschun 2008). At the gift shops, the attendants gave free samples to children. This completely won the hearts of many customers, who became advocates of the company.
O’Reilly (2012) explains that Cadbury was adopting a social first approach to marketing. The social first approach was in such a way that the organization prioritized customer relationships. Such relationships are superior to the profit goal. O’Reilly (2012) describes Cadbury as one of the most interactive organizations, judging from the way they communicated with their customers and the way such interactions resulted in fulfillment of promises made by the organization to its customers. In addition to the strategies above, the organization employs such strategies as rewarding the customers that remained loyal, listening and responding to customer concerns in a timely manner, networking and the use of social media (Wang 2007). Social media is particularly effective in establishing links between the customers and the organization.
Reference list
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