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When customers are truly loyal to a company, their relationship changes from a simple exchange of product for money to a long-term commitment, despite price increases and/or occasional errors.Moreover, effect of word of mouth (WOM) is much stronger than any other form of advertisement or promotion, so it is also possible that satisfied and loyal customers could be influencers for the brand.Research on customer loyalty has been receiving a lot of opinions.Chief of Naval Personnel - N1 Update your My Navy Education profile (in My Navy Portal - CAC enabled) to receive notifications.The biggest threat any businesses have is that customers could switch to its competitors but if an organization follows a relationship strategy their customers are less likely to switch to the competitors that will also create barriers for the competitors to enter into the market.Customer Loyalty Because customer satisfaction will lead to customer loyalty and this is the most important objective of CRM, therefore this term should be focused and tried to evaluate.Moreover, CRM strategy is an integrated marketing approach with a very clear objective is customer loyalty so it helps in gaining competitive advantage business.CRM and Transactional Marketing Transactional marketing and relationship marketing are two approaches of marketing strategy and the main difference between is: Transaction is mainly focuses on the single sale formula, pushing the sales through mass marketing and promotions of the product.
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The cost incurred attracting new customer is much more than building long term relationships in term of marketing cost.
Transactional marketing focuses on maximizing the profit of the company by recruiting more and more customers to purchase the firm’s product rather than developing a relationship with the buyer.