Getting Started with Local SEO for Physical Retailers
is deeply known that retaining customers is much more difficult than attracting a new one. The figure is different according to different sources but on average, acquiring a new customer is anywhere from 5 to 25 times more expensive than retaining an existing one (Gallo, 2014). Not only is the cost of retaining an existing customer less than the cost of acquiring a new one but also existing customers cost less to maintain than newly acquired. Dawkins & Reichheld
(1990) found that a 5% swing in customer retention can impact profits from 25 to 85% across a wide array of industries. Zeithaml, Berry, & Parasuraman (1996) stated that reducing consumer defection is a more profitable strategy than cutting costs or increasing market share. Therefore, customer loyalty and retention is one of the main concerns for all kind of
from products to services to places like malls and retail stores. And, in today’s world, with so many purchase possibilities online and offline, the matter is increasingly important. Loyalty programmes are commonly used in forms of discounts, presents and personal communications among other practices. In this context of increasing competition and
difficulties, loyalty is a key factor
for survival and success (Schlesinger, Cervera, & Pérez-Cabañero, 2016). But unfortunately, loyalty is not the same as retention nor a synonym of repeat purchases. Understanding customers’ decision-making processes to predict their future intentions and behaviour has been the goal of many psychology, marketing and consumer-behaviour theories (Han & Ryu,
In order to maximize customers’ repurchase intentions, managers need to know the success factors influencing repurchase intent and their relative importance (Frank, Enkawa, & Schvaneveldt, 2014). The different purchase process theories vary on the basis of consumers’ priorities and the intensity of need and wants of a particular product (Prasad &
Jha, 2014). That is why we have created a model for Repurchase Intentions in which we establish some constructs that affect every stage of the process. IBased on Engel, Kollat and Blackwell model of purchase process (Blackwell et al., 2006) (Figure 1) , we have developed a “repurchase model” to further apply it to a “brick and click process”. Bearing in mind that
buyers go through a purchase process
or better, a “repurchase process”, we would like to identify those elements that are key when buyers face the decision of repeating a purchase. Repurchase intention is the individual’s judgement about buying again a designated service from the same company, taking into account his or her current situation and likely circumstances (Hellier, Geursen, Carr, &
Rickard, 2003). In this context, we have conducted an exploratory research to gather preliminary information that will help define problems and suggest hypotheses. The basis of the research will be to test a model that wishes to describe the extent to which repurchase intention is influenced by certain proposed moderating variables (brand reputation, quality,
complementary services, atmosphere, price and distance, among others). When we speak about “brick and click” we refer to the fact that retailers have presence in both online and offline environments. Obviously, applying a purchase process or a repurchase process to a brick and click business means to adapt the existing models to a more complex one.In order to address these questions, we have gone through a number of reports made by important
consultancy companies so as to have
a clear idea of how customers behave during the purchase process and in what percentage the factors we have considered as important are really considered as such. We have identified the phases of the classical consumer behaviour model (need recognition, information search, alternative evaluation, purchase and post-purchase) (Kollat, Engel, &
Blackwell, 1970) under an omnichannel approach in all possible combinations, i.e. shopping in the store,For a long time, customer satisfaction management has been the key factor to consider to retain him (Ganiyu, Uche, & Elizabeth, 2012). Customer satisfaction in this context, is the attitude resulting from the comparison of the expectation of performance and
perceived performance of the service experience (Oliver, 1980). The belief among many executives is that measuring satisfaction is the best indication of repurchase intention (Kenney & Khanfar, 2009) but although satisfied customers tend to be loyal, loyal customers are not necessarily satisfied (Fornell, 2016). Determining the link between satisfaction and intent to repurchase has been troublesome for firms (Mittal, 2013).This disconnect between
Conclusion
satisfaction and intent to repurchase prohibits practitioners from making accurate estimations (Olsen, 2002). Future purchase intentions cannot accurately be estimated based on past behaviour (Andreassen & Lervik, 1999). In the marketing literature, future repurchase intention is recognized as a positive consequence of customer satisfaction (Anderson, 1994; Cronin, Brady, & Hult, 2000; Zeithaml et al., 1996), but a closer look at the link between
customer satisfaction and future repurchase intention has indicated weak and sometimes non-existent relationships between these constructs (Hennig-Thurau & Klee, 1997). Embedded in future repurchase intention lies satisfaction with the last encounter, the sum of previous experiences, and knowledge of other alternatives (Andreassen & Lervik, 1999). Repurchase intention is defined as the individual’s judgement about buying a service again,
the decision to engage in future activity with a service provider and what form this activity will take (Hellier et al., 2003). After all, repurchase is the key to a firm’s long-term success (Han & Kim, 2010). Repurchase involves satisfaction, loyalty, memory, perceptions, evaluation and attitudes. Nevertheless, high levels of perceived quality and customer satisfaction are not sufficient to promote customer loyalty in many industries (Olsen, 2007). In fact, 71% of
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