Relationship marketing issues:
●the introduction of a successful loyalty card
●database marketing
●the use of micro marketing
●the use of loyalty cards as a mechanism for customer bonding
●the profit impact of customer retention on profitability
●strategic and tactical issues in the use of loyalty card schemes.
This case shows how a market leadership position can be achieved
by a market follower through a highly innovative customer-focused
marketing strategy. It demonstrates the tremendous value that can
be generated by understanding customers at the individual level in
an industry where, five years before, retailers had virtually no
knowledge of customers at the individual level. It shows how a con-
tinuous dialogue can be initiated with customers, how this commu-
nication can be mass-customized at the individual customer level
and how relationships can be built through the leverage of continu-
ous transactional data. Issues from other of the six market domains
are also addressed.
Case 2.4: Rover Cars: The Catalyst and Conquest ’91
direct marketing programmes
This case was written by Professor Adrian Payne, who is Director of
the Centre for Relationship Marketing at Cranfield School of
Management, Cranfield University.
Abstract
From the late 1970s Rover became increasingly interested in making
better use of the wealth of data that was potentially available from
customer purchases, subsequent servicing and claims on warranty.
This case study describes how, from a modest beginning, Rover
developed a sophisticated approach to direct marketing. Rover ben-
efited in a very tangible way from this approach, which was widely
recognized at the time through a number of prestigious awards that
it received both in the UK and the USA in recognition of the quality
of its innovation in direct marketing. How direct marketing pro-
grammes evolved at Rover between 1978 and 1991 is described in
58 Relationship Marketing