Webmarketing, digital marketing, digitization, customer loyalty, digital technology, new technologies, communication, Yuka, CRM Customer Relationship Management, AI Artificial Intelligence, Internet, brand loyalty, online information
The digitilization of the world is disrupting all human activities. By modifying the way we obtain, transmit and exchange information, digital technology is profoundly changing the way we consume, trade and communicate. New technologies are also disrupting our approach to marketing and especially customer loyalty toward brands. Indeed, the influence of the external environment on consumer loyalty is not insignificant. This is what we are going to discuss in this short paper.
Is it more complicated these days, particularly with access to information and competition, to generate commitment to brands? Or perhaps, on the contrary, the Internet helps build customer loyalty by creating a close bond, relationships, a community...
[...] This application shows the paradox of the impact of new technologies on brand loyalty. As it has been explained before, loyalty is more than a simple repeat purchase but rather a real relationship between the customer and the brand. Yuka, by giving access to information, brings people together and facilitates trust toward the brand and so, loyalty. However, knowing too much can also be detrimental to brands and drive away consumer loyalty. This is what we will discuss in the next part. [...]
[...] Then, consumers can switch from one web site to another in one or two clicks to compare prices, products and quality. Above all, the consumer wants to obtain the maximum benefit in exchange for the money they spend on the purchase of a product or services. It is all the more difficult to remain loyal to a brand as one is exposed to more frequent and stronger temptations from competing brands. For purchases made online, the very nature of the Internet removes geographical constraints. [...]
[...] F., Kaplan, A., Kötterheinrich, K., & Kroll, E. B. (2020). Brave new world? on AI and the management of customer relationships. Journal of Interactive Marketing 44-56. Prahalad, C. K., & Ramaswamy, V. (2004). Co-creation experiences: The next practice in value creation. Journal of Interactive Marketing, 5-14. Rangaswamy, A., Moch, N., Felten, C., van Bruggen, G., Wieringa, J. [...]
[...] To precisely answer our question is: Do new technologies prevent consumers from being loyal to brands? We can now say that the relationship between the Internet and loyalty is very paradoxical because the Internet is both a threat and an opportunity for companies in the field of loyalty. In my personal opinion, the new technologies and the Internet represent more of an opportunity than a threat to loyalty. No one can escape progress and companies needs to adapt themselves to make customers loyal to their brands. [...]
[...] New technologies allow brands to better communicate their values and transmit a positive image. Indeed, the search for trust, proximity, a certain involvement on the part of the consumer, are unique opportunities to apply a relational marketing approach. New technologies have brought consumers closer to brands. This relational bond can be facilitated through co-creation. Relationship marketing can be defined as a set of tools to establish individualized and interactive relationships with customers in order to create and maintain positive and lasting attitudes toward the brand (Libai, 2020). [...]
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