One of the most important things in the marketing area of B2B and B2C is to increase the customer loyalty which is the “degree to which a customer will stay with a specific vendor or brand for repeat purchasing”. It expects to produce more sales and increased profits over time. It is usually the most important thing for the companies.
If the customer loyalty is done perfectly, it can bring cost savings to the company in various ways such as; lower marketing costs, lower transaction costs, lower customer turnover expenses, lower failure costs such as warranty claims. It also strengthens a company’s market position because loyal customers are kept away from the competition.
As far as I read more in the e-commerce book, I understood that loyalty is a multidimensional concept.
For example, we sometimes do not know the companies who sell online well enough or even we know them, we do not trust them and we buy from somewhere else. It is very difficult for online companies to create trust over its customers. Amazon.com can be given as an example to this where it was not profitable until year 2001 because it was not known enough. It can be seen here that loyalty is very difficult to create over customers and it takes a long time for people to trust. For me, it was the same problem. I bought some books from amazon.com two months ago for the first time in my life and I was not buying anything only because I did not want to give my credit card details. But after having this lecture, my feelings about the online shopping changed more in a positive way as well as with my books delivery on the time without any problems.
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