Research On Customer Loyalty Based On Experiential Marketing

Customer loyalty is the bedrock of an enterprise to make profit, and the biggest intangible assets of a corporation. The research indicated that the cost of getting a new customer is about five times of maintaining an old one. If you want to persuade the satisfied customer of other companies to be your customer you have to pay much more effort and cost. So we can see the customer loyalty is very important for a company. The academic word has done lot of useful research and got meaningful and valuable result on customer loyalty. Meanwhile, companies are doing business to maintain the current customers to let them become repeat customer.After the commodity economy and service economy, a new model of the economy—experiential economy is in the making in new century. Experiential economy has the new economic proffer—experience, and experience is the new source of value. The model of marketing in a company has to be changed to fit the new model of economy because the economic proffer has changed in comparison with the old ones. Experiential Marketing is the inevitable choice in this new economic model. In the model of traditional marketing, the research on customer loyalty was concentrate on the action of repeat buy and the tendency of attitude. But the customer loyalty belongs to the sphere of emotion. We could see the research of this topic is absent. This paper cut-in from this perspective and research the customer loyalty based on experiential marketing in the era of experiential economy. At first,By analyzing the change of customer requirement and consuming behavior the paper believe the consumption of experience by customer redefine the concept of customer loyalty in the era of experiential economy.Accordingly, the influencing factors have changed. Then the paper designs a new model of customer loyalty based on experiential marketing and proposes some tactics to improve the customer loyalty by analyzing the model. Finally, the paper analyzes the practice and performance of Starbucks in customer loyalty based on experiential marketing and reveals the process of the customer loyalty development in Starbucks. I hope this case would be a good example and helpful model for other corporations practice.The innovative idea of the paper is research the construction and development of customer loyalty based on experiential marketing. Researching the development of customer loyalty in connection with the interactive of customer and experience, the paper reveals the relations between them and would be a valuable theory for corporation to get customer loyalty in the era of experiential economy.