Customer Loyalty In Fitness: A Case Study

1. Introduction

Background

The author works in the fitness industry, and the issue to be explored is that of Customer service and whether increased levels of Customer Service will have a positive or negative impact on customer loyalty in Fitness. This will be a case study and the information will be based on Fitness, a gym in town with a client base of 4,000 members.

Research Rationale

Loyalty and retention of members is fundamental to the fitness industry. (Twomey, 2012, p. 107) mentioned that, “Customers will remain loyal to companies that reward them”, this may be the case but the objective is to see if customer loyalty is not only reward based, but if it also relies on customer service. The main areas of discussion within the

Literature review

Introduction

Within this chapter I will discuss customer service and its benefits. What Customer Loyalty is and factors that influence customer loyalty and rewards.

What is Customer Service

The concept of Customer service can be multifactorial, but I feel that ultimately it involves customer’s satisfaction and how companies strive to retain their customer base by implementing certain customer service procedures to keep the customer happy, in the hope that they can retain their custom and that the customer will then spread the news about the excellent service that was provided by the company. (Twomey, 2012, p. 2), defined it as,

The provision of a product or service of a sufficient quality and in a sufficient manner that reaches or exceeds the customer’s expectations

However, (Leland & Bailey, 2006, p. 12) expands on this definition by discussing the concept of being “customer focused” and that by appeasing the needs of your customers by any means possible your company will meet the requirements of being customer focused this in turn will improve “customer Loyalty” and “word of mouth”. This would suggest that being customer focused in terms of their needs and expectations can have a major impact on how and why customers use or continue to use your company or

Without acting upon suggestions, complaints, compliments and feedback customers are soon discouraged and ultimately leave. If they are acted upon it creates happier customers that are more likely to get involved and voice their opinions. If they know that their suggestions will be acted upon, it can help customers to feel valued and to feel part of the company and not just a number.

When there is great customer service within a company, customers feel that what they say matters and that their suggestions and comments will be taken seriously and acted upon. All this will then in turn contribute to the retention and loyalty of customers.

Factors that Influence Customer Loyalty

Excellent customer service and complete satisfaction with the product or service are major factors that are relied on and influence customer loyalty. (Leland & Bailey, 2006, p. 9) stated, “Customers want a competitive price, good value, convenience and customer service and they want it yesterday” This suggests that customer loyalty relies upon customer service and matching what the customer wants and what they get in terms of satisfaction. There are many factors that can influence this such as,

• Handling of customer complaints and compliments

• Addressing