GenZ is a public limited company. It makes a range of beauty products including shampoo and soaps for the mass market. Last year GenZ’s revenue fell. The Marketing Director has been looking at the results from its primary market research based on a sample of 2000 consumers. The research showed 1100 people like to buy from physical shops and 700 online. She believes maintaining customer loyalty is more important than attracting new customers.
07 Do you think maintaining customer loyalty should be more important to GenZ than attracting new customers? Evaluate. [12]
Customer loyalty:
> Maintain market share / sales
> Spread word / free advertising
> Keep reputation
> Able to match products to existing customer needs
New customers:
> Widen target market
> Customer tastes change
> Need to carry out advertising to attract customers
07 Do you think maintaining customer loyalty should be more important to GenZ than attracting new customers? [12]
-
Sir Afzal Shad
- Grand Commerce Guru
- Posts: 163
- Joined: Sun Oct 22, 2023 10:10 pm
Re: 07 Do you think maintaining customer loyalty should be more important to GenZ than attracting new customers? [12]
One way maintaining cutsomer loyalty could be more important is, that it helps maintain GenZ's sales. For example, GenZ could offer discounts on repeat purchases to encourage customers to continue buying their shampoos and soaps. This can help maintain market share as customers will continue choosing GenZ instead of moving to competitors. It can also lower marketing costs as keeping existing customers is not as expensive as attracting new ones. Loyalty may also help GenZ understand customer preferences more accurately.
One way attracting new customers could be more important is that it can expand GenZ's customer base and increase their sales. For example, GenZ could advertise online to appeal to consumers who prefer online shopping. This can help widen the target market by reaching people who don't use GenZ products. It reduces the risk of relying on the same customers, especially if there tastes change. Attracting new customers also gives GenZ the chance to sell more products overall, which can increase revenue.
Overall attracting new customers may be more important for GenZ. Last year GenZ's revenue fell meaning it is hard for them to maintain sales with their current customer base. Attracting new customers gives them opportunity to increase their sales leading to an increase in their revenue. Loyalty supports stability but attracting new customers provides stronger potential future growth.
One way attracting new customers could be more important is that it can expand GenZ's customer base and increase their sales. For example, GenZ could advertise online to appeal to consumers who prefer online shopping. This can help widen the target market by reaching people who don't use GenZ products. It reduces the risk of relying on the same customers, especially if there tastes change. Attracting new customers also gives GenZ the chance to sell more products overall, which can increase revenue.
Overall attracting new customers may be more important for GenZ. Last year GenZ's revenue fell meaning it is hard for them to maintain sales with their current customer base. Attracting new customers gives them opportunity to increase their sales leading to an increase in their revenue. Loyalty supports stability but attracting new customers provides stronger potential future growth.
-
Fatima ibtehaj
- Enterprise Emperor
- Posts: 109
- Joined: Mon Sep 15, 2025 6:13 pm
Re: 07 Do you think maintaining customer loyalty should be more important to GenZ than attracting new customers? [12]
I believe maintaining customer loyalty is more important.
[KN]Maintaining customer loyalty is often cheaper than attracting new customers as compare to attracting new customers because not much advertisement is required.
[APP]For GenZ, loyal customers are likely to make repeat purchases of frequently used products such as shampoo and soap leading towards repeated sales.
[AN]This is especially important when sales are falling, as loyal customers reduce the risk of further decline. In addition, satisfied loyal customers may recommend GenZ’s products to others, creating positive word of mouth advertisement which will indirectly attract new buyers at little extra cost.
However, attracting new customers is also important.
[KN]It can help to widen target market as new customers have different tastes and wants which can encourage the business to expand their product line accordingly.
[APP]Since GenZ conducted a sample of 2000 people therefore they can discover the needs and wants of different customers.
[AN]This can lead towards a competitve advantage as with the help of a sample survey they can produce products exactly how customers want them leading towards less wastage of resources which can help to reduce additional ware house cost in the long run.
[EVALUATION]GenZ should retain loyal customers through consistent quality and availability in physical shops, while also attracting new customers, especially online where 700 respondents prefer to shop. Therefore, customer loyalty should be a priority, but not at the expense of growth through new customer acquisition.
[KN]Maintaining customer loyalty is often cheaper than attracting new customers as compare to attracting new customers because not much advertisement is required.
[APP]For GenZ, loyal customers are likely to make repeat purchases of frequently used products such as shampoo and soap leading towards repeated sales.
[AN]This is especially important when sales are falling, as loyal customers reduce the risk of further decline. In addition, satisfied loyal customers may recommend GenZ’s products to others, creating positive word of mouth advertisement which will indirectly attract new buyers at little extra cost.
However, attracting new customers is also important.
[KN]It can help to widen target market as new customers have different tastes and wants which can encourage the business to expand their product line accordingly.
[APP]Since GenZ conducted a sample of 2000 people therefore they can discover the needs and wants of different customers.
[AN]This can lead towards a competitve advantage as with the help of a sample survey they can produce products exactly how customers want them leading towards less wastage of resources which can help to reduce additional ware house cost in the long run.
[EVALUATION]GenZ should retain loyal customers through consistent quality and availability in physical shops, while also attracting new customers, especially online where 700 respondents prefer to shop. Therefore, customer loyalty should be a priority, but not at the expense of growth through new customer acquisition.