Retaining and rewarding loyalty
In The Customer Loyalty Solution, author Arthur Middleton Hughes makes a genuine
attempt to combine the best of three worldsIT, business and marketing.
Hughes goes back to the basics and reminds people of the era of the corner grocery
store. The grocer knew the names of his customers, would stand at the door and
greet them by their names, ask about their families well-being, and provide
He would keep things aside for customers, help them carry heavy packages to
their cars, and build strong and lasting relationships. In short, he built his
business by cultivating the loyalty of his customers.
The Internet in the present day has changed the way we communicate and carry
out business. It has ushered in a global perspective where we realise that theres
a whole world of potential customers out there waiting to be tapped. If you
have the resources and the know-how, you are on your way to becoming a world
Although there are computers for easy access to information, only few IT companies
manage to make it big because making business sense of the available data needs
business and marketing acumen. Many businessmen and marketing experts remain
local players and are unable to think big or expand their business and expertise
to a global level.
Today, we live in the world of Business Intelligence where state-of-the-art
solutions are easily available. Many companies spend millions to implement such
remedies, and yet more than half the CRM implementations in the US and more
than 80 percent in Europe are considered failures. Thus the need for business
executives, including the CIO, to get a better perspective of business.
This book stays away from jargon, and wherever technical words arise, an effort
is made to explain them. It covers the basics before going forward with a practical
guide for searching for a realistic solution to make database marketing work.
Hughes divides the book into 15 simple and easy to understand
chapters. Each chapter explains a different aspect of data marketing such as
the working of database marketing, selling on the Web, computing the lifetime
value of a customer, importance of a customers name, the power of communication,
customer response, marketing to a particular segment of customers, and finding
The Customer Loyalty Solution
Author: Arthur Middleton Hughes
Publisher: Tata McGraw-Hill
Price: Rs 195
It is more of a practical guide or handbook in its approach,
with chapters citing examples and case studies to explain the solutions applied
by a company. At the end of each chapter there is a summary of all the important
points covered, followed by what approach worked and what did not for a company.
The author also adds a short quiz to ensure that the reader was alert while
The Customer Loyalty Solution stresses on bringing back close personal relationships
between customers and their companies which has been lost due to globalisation
and growth in the economy. The book exhorts the reader to keep track of important
facts which are always pondered over by the worlds leading companies in
database marketing and customer loyalty management. These are:
- Data marketing is not the same as CRM
- Data marketing is incremental. The Internet helps
data marketing deliver what it promises
- The Web is an ordering medium, not a selling medium
- Everything in database marketinga new strategy,
a programme, communication can be measured
- It is advisable to compute customer lifetime value
and use it to design your marketing strategy
- Some customers are profitable and some are not.
The book questions the retention of the loyalty of unprofitable customers.