Customer benefits

Customer benefits are incentives for customers that build a strong relationship between the client and the organization. Such benefits can attract customers and create a long-term relationship which is based on emotion, partnership and trust. Customer benefits cause that clients become loyal to the organization, and they do not look for a substitute for the products which they buy at the particular organization (S. A. Butscher 2002, p. 3)

Types of customer benefits

There are three main types of customers benefits, including (Y. Chang-Hua, L. Li-Ling, C. Chien-Yu, L. Tzy-Yau 2016, p. 175):

• Confidence benefits. Such benefits cause that the customer anxiety is reduced. Moreover, the customer knows what he or she can expect from the service encounter and these benefits also contribute to increasing the trust in the supplier. There benefits are strongly connected with customer satisfaction.
• Social benefits. Such benefits regard emotional part of the relation between the customer and the supplier. They focus mainly on the growth of the friendship between the client and the provider. There benefits are also known as results of communication between the customer and the supplier. Social benefits are also connected with customer saisfaction.
• Special treatment benefits. Such benefits contribute to the fact that the customer can feel special. They include e.g. price discounts, personalized services or receiving products or services faster than normally. These benefits encourage customers to maintain and develop relations with suppliers. Special treatment benefits also make the customer's satisfaction stronger.

The organization has many opportunities to develop customer's satisfaction, including (S. A. Butscher 2002, p. 20, 56):

• Customer Relationship Management. It is a set of tools which can contribute to establishing loyalty among customers. Due to CRM, the organization has the opportunity to extract valuable information from customers, and consequently offers them customized services or products.
• Customer Loyalty Programme. Such a programme usually attract many new clients and contributes to the fact that relations with existing customers are stronger. Loyalty programmes include many benefits for customers. There are two groups of benefits: hard and soft. Hard benefits relate to financial side of purchases. There can be found e.g. coupons, rabates, discounts. They can attract customers but they are not sufficient if the organization wants to maintain good and long-term relations with customers. The reason is that if the competitors offer a better deal, the customer will buy a product or service from them. Because of that, the organization should focus on soft benefits. These benefits make the loyalty of the customer stronger, because such benefits are typical for a particular company and competitors simply cannot copy them. These benefits are e.g. making special offers, offering value-added services or treating customers in a unique way.

Examples of Customer benefits

• Discounts: Offering a customer discounts as a customer benefit can be an effective way to attract customers and retain loyalty. Discounts can vary in size and can be offered for a particular product or for a range of products.
• Loyalty Programs: These reward customers for continuous purchases from a particular organization and can be structured in a variety of ways, such as a points system.
• Exclusive Access: Offering customers exclusive access to products or services can be a great way to encourage them to become loyal to the organization. This could include access to special events, new products or services, or exclusive discounts.
• Rewards: Rewards are another great way to show customers that their loyalty is appreciated. This could include free products or services, special offers, or access to exclusive rewards.
• Personalized Customer Service: Providing personalized customer service is a great way to make customers feel valued and appreciated. This could include personalized customer service representatives, tailored emails and newsletters, or specialized services.
• Free Shipping: Offering free shipping as a customer benefit can be a great way to encourage customers to purchase from the organization. This could include free shipping for a certain amount of purchases or for a set period of time.
• Customer Referrals: Offering incentives for customers to refer their friends or family to the organization is another great way to build customer loyalty. This could include discounts, rewards, or other types of incentives.

Limitations of Customer benefits

• Customer benefits can be costly for the organization, and can limit the amount of resources available for other areas of the business.
• The effectiveness of customer benefits can vary with time, and the organization needs to continuously monitor them to ensure that they remain attractive to the customers.
• It can be difficult to measure the success of customer benefits, and therefore their effectiveness is hard to assess.
• Customer benefits may not be attractive for all customers, and organizations should consider offering different benefits to different customer segments.
• Customer benefits can create customer expectations that may be difficult to fulfil if the organization’s resources are limited.
• Customer benefits can create a sense of entitlement among customers and lead to customer dissatisfaction if they feel they are not being rewarded enough.

Other approaches related to Customer benefits

• Customers are the lifeblood of any business, so it is important to ensure that they are provided with the best possible service and satisfaction. Companies can create customer benefits by offering discounts, loyalty programs, personalized services, and rewards.
• Creating an enjoyable shopping experience is another way to build good customer relationships. This can be done through providing helpful and friendly staff, having a pleasant and inviting store environment, and offering special services like free gift wrapping.
• Developing a customer feedback system is also an effective way to create customer benefits. This can involve providing surveys and incentive programs to customers, and listening to their feedback and suggestions.
• Social media and other digital platforms can be used to create customer benefits. Companies can use these channels to share promotions, discounts, and other offers, as well as to engage with customers and build relationships.

In summary, customer benefits are an important factor in creating strong customer relationships and loyalty. Companies can create customer benefits by offering discounts, loyalty programs, personalized services, developing a customer feedback system, and using digital platforms. Creating an enjoyable shopping experience and engaging with customers are also key to providing customer benefits.

Customer benefits — recommended articles

Relationship selling — Customer loyalty — Market connection — Affinity marketing — Incentive marketing — Relationships with customers — Point of purchase — Image of the company — Brand promise

References

• Butscher A. Stephan (2002), Customer Loyalty Programmes and Clubs, Gower Publishing Limited, Aldershot
• Chang-Hua Y., Li-Ling L., Chien-Yu C., Tzy-Yau L. (2015), Customer Relational benefits and Relationship-Marketing Outcomes: Comparing Three Transaction Types of Travel Product, "Asia Pacific Journal of Tourism Research", nr 20, p. 175
• Hill N., Roche G., Allen R. (2007), Customer Satisfaction: The Customer Experience Through the Customer's Eyes, Cogent, London
• Horner S., Swarbrooke J. (2005), Leisure Marketing. A Global Perspective, Elsevier Butterworth-Heinemann, Oxford
• Rai K. Alok (2014), Customer Loyalty: Concept, Contex and Character, McGraw Hill Education, New Delhi

Author: Katarzyna Krzyk, Adrianna Kuzak, Julia Kotlarz