At the root of customer loyalty in India

SDA Bocconi Insight - Theory to Practice

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To build customer loyalty, retailers don’t need to focus on price promotions, but instead competent sales staff and a product assortment that’s consistent with the store’s positioning.

The context

Intensifying competition, downsliding prices, shrinking margins, and increasing difficulty in winning customer loyalty: this is the context that retailers in the Western world have to contend with. The changes in consumer preferences and the rise of e-commerce make it that much more difficult for retailers to build a solid base of customers who are willing to make repeat visits to stores, to extend their purchases to premium products, and to recommend stores from retailers’ chains to other consumers. In other words, the challenge is to succeed in consolidating customer loyalty. From this standpoint, the chance to break into emerging markets can look like a logical alternative for expanding business in new directions.



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