Creating Long-Term Loyalty Relationships

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  • Topic: Marketing, Customer satisfaction, City
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Marketing Management|
Chapter 5Creating Long-term Loyalty Relationship|

By :
Carlo Lukman Windarto
Taufan Tito
Dini Anggriani
Dina Tambunan

Magister Management
Universitas Gadjah Mada

Creating Long-Term Loyalty Relationships

A. Makarizo Customer Loyalty Program
In order to increase customers perceived value Makarizo apply what they called : Seasonal Promo. It is a promo where a bunch of products were sold as one package that comes with several extra benefit, such as : extra tools (hair dryer, flat iron, klips, cape, etc), extra free products, extra free training, extra workshop (colouring, rebonding, perming, styling), extra discount hair show ticket.With this way of communication, for example : a group of products that actually cost Rp 500,000 looks cheaper with those extra benefit, and so it will maximizing positive difference gap between total customer benefits and total customer cost. The bonding between salon customers and Makarizo are even better, as salons are being gratefull with Makarizo because by buying and using Makarizo products, they can have training and more knowledge about new hair technique and keeping up with hair trend, which will definitely at the end increasing their salon clients. This Seasonal Promo was sent to all Makarizo salon customers by mailingas a bulletin at the end of every month. Salons are free to choose and then place the order to a respective salesman.Makarizo is able to do this because of its internal customer database that reach 20,000 over salons data. It was developedinternally by Makarizo IT team using simple Sybase Power Builder (currently this brand has acquired by SAP). Every year Makarizo also held Salon Management seminar in some main cities in Indonesia, where basicly in this seminar salon owner will learned things such as : how to increase clients, prevent clients move to salon competitor, manage and nurture salon’s employees, create effective in-house promotion,...
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