5BU018 Customer Acquisition and Retention Case Study

Introduction Of 5BU018 Customer Acquisition and Retention Case Study

The plan of customer acquisition and retention has been produce after detail analysis of current customer relationship management (CRM) plan of Pretty Lavish. CRM is one of the effective systems that help the organizations to manage their interactions with the current and potential customers (Guerola-Navarro et al, 2021). The key goal of CRM is to enhance the relationships with the customers from which they attract and retain with the organizations for long duration which ultimately positively impacts on the overall growth. Adoption of CRM is beneficial for the organizations because it helps in improving the customer service, enable exploration of new customers and simplify the process of sales and marketing which eventually positively influence their overall operation (Ledro, Nosella and Vinelli, 2022). The current CRM strategy of Pretty Lavish is based on the social because it operates its business through online mode rather than the physical stores. By combining the value chain Pretty Lavish can implement its new CRM strategy in effective and successful manner. Additionally, the current report will depict how selected organization use CRM to improve customer experience. This report will also highlight ways to enhance existing CRM strategy. It will also include the development of new CRM strategy and it adds value to the customers throughout the journey.

 Main Body

CRM of Pretty Lavish

Pretty Lavish is one of leading retailer that sells the luxury clothing. This organization was incorporated in 2013 by sisters Samantha and Stephanie Frosts. The headquarters’ of this organization is situated in Hertfordshire, England. The key aim of this organization is to make the luxury clothes and sell it on affordable prices. Additionally, this brand is famous for the occasion wear, knitwear and bridesmaids collection (Pretty lavish, 2025). The designs of Pretty Lavish clothing are the combination of the comfort and style. The key mission of the chosen organization is to bridge the gap between designer brands and high streets. This organization is operating the business operation in the multiple countries such as UK, Germany, China, France etc. Thus, it is crucial to have great and effective CRM strategy. The selected organization has significant position within the fashion industry of the UK and have strong image in the consumer’s mind.

For the growth and success as well as to generate the higher revenue it is important for the companies to acquire and retain the customers for the long duration by enhancing their experience (Guerola-Navarr et al, 2024). For attracting the customers it is important for the organization to increase their satisfaction and enhance experience. For this, it is significant for the company to fulfil the customer’s needs and requirements by analysing their behaviour. The current CRM strategy of Pretty Lavish is based on social CRM. Adoption of social CRM is beneficial for the organizations because it helps in improving the customer retention and increase satisfaction through various digital platforms which ultimately positively influence on the overall experience from that they are likely to attract and retain with them (Dewnarain, Ramkissoon, H. and Mavondo, F., 2021). In addition to this, adoption of social CRM is useful because it enables companies to gather, store and evaluate the data of consumers which assist them to create a complete customer profile of each consumers. With the help of customer profile, organizations can understand the preferences, needs and behaviour of consumers in better way than they are able to provide the products and services accordingly in order to enhance their experience.

According to Dewnarain, Ramkissoon and Mavondo (2021), adoption of CRM system is beneficial for because it facilitates it to track the interactions with the customers encompassing purchasing of past goods and services, support inquiries and reactions to marketing campaign all in one place. By tracking this information, organizations can determine trends and create the targeted campaigns in order to meet the needs and preferences of customers (Alshurideh et al, 2023). Apart from this, Pretty Lavish is using social CRM to improve experience of customers by personalizing the communication. If the organizations are using collected data into CRM then it helps in personalizing their communication with the customers which leads to improve their experience. Additionally, personalizing the communication aids in building the stronger relationships with the customers from which they are likely to make repeat purchase. Implementing social CRM strategy is beneficial for Pretty Lavish because it helps in enhancing relationships with the customers by providing faster customer service, sharing the content and practicing the social listening. Selected organization is emphasis on social media to improve customer experience because it allows collecting their valuable data to meet the needs and requirements accordingly.

 On the other hand, adoption of social CRM is beneficial for selected company over traditional because it includes various social platforms such as Instagram, Faceook, YouTube etc. As per the thought of Arora et al, (2021), social CRM allows companies to capture reliable data of customers from the social media profiles, monitoring their conversations and engage with them in proactive manner. Pretty Lavish is emphasis on social CRM because it aids in maintaining the real-time interactions with the customers. It also empowers organizations to deliver the personalized content about the products on social media platforms to strengthen the bond with the customers by encourage them to make purchase (Chatterjee et al, 2021). The social media is drastically increases the followers of Pretty Lavish and it converts into the customers. Selected organization is using the phenomenon of social media advertising for the marketing its products into the market. As per the view of Ledro, Nosella and Vinelli (2022), adoption of social CRM is beneficial for the companies because it helps in determining new opportunities which helps in gaining success.

Pretty Lavish is using social CRM to visit the networking sites such as Twitter and Facebook as well as see which type of products is purchase by the customers more. With the help of social CRM, companies can greatly enhance the experience of the customers by seeking feedback. With the help of feedback, companies are able to provide the products according to the needs and demand of the customers which eventually generate leads and increase profitability. On the critical note it has been critically argued by Ijomah et al, (2024), using social CRM is challenging for the companies because of data privacy and security. On social media platforms there is chances of loss and theft of customer data which directly impacts their trust so it is crucial for the companies to adhere to data privacy regulations like GDPR (General data protection regulation).

Apart from this, to manage all the social media channels Pretty Lavish can need to adopt social CRM tool i.e. Hootsuite Inbox. This tool can assist chosen organization to engage with the users frequently and analysing the data to build relationships with them and enhance overall experience. According to Suharto and Yuliansyah (2023), adoption of Hootsuite can be useful for the companies to monitor the trends of sectors and use emerging technologies like artificial intelligence (AI) to produce great content, minimizing waiting times of customers and maximizing the engagement of customers by determining the perfect time to post.

Gaining customer data

 For attracting and retaining the customers for long duration it is important for the companies to build and strengthen relationships with them and enhances the overall experience. For this, it is more important to have reliable and accurate data of customers from which organizations can fulfil their needs and demands accordingly (Perez-Vega et al, 2022). Pretty Lavish is collecting the data of its customers through its own mobile application. With the help of own application, chosen organization is easily determine which product is highly purchase by the customers. From this, Pretty Lavish is manufacturing the clothing accordingly which have high demand that leads to increase customer base, generate profits and gaining competitive advantage over competitors. Introducing mobile application is beneficial for Pretty Lavish in order to identify the touch points of customers. To rationalize data collection and data management, Pretty Lavish will need to emphasis on adopting customer data integration (CDI) process. As per the view of Yasiukovich and Haddara (2021), CDI is considered as critical process of gathering the data of customers with the help of several sources and organizing it in effective manner that can be easily shared to the members across companies. Adoption of this process is beneficial for the companies because it helps in improving operational efficiency and capabilities to make the effective decisions (Malki et al, 2024).

 Pretty Lavish Website

 To attract and retain customers for the long period of time, Pretty Lavish is also emphasising on developing its own website. From this, the customers are making easily purchase with flexibly and easily within limited period of time. This approach of chosen organization helps in strengthening the relationship with the customers and increases their engagement from which they are likely to make repeat purchase. It has been critically contended by Jami Pour and Hosseinzadeh (2021), having website is beneficial for the companies because it aids in increasing sales, building brand awareness and improving the customer service.

Ways to enhance CRM strategy of Pretty Lavish

To attract and retain the customers as well as improving their experience, it is important for the companies to build the strong relationships through engagement. As critically said by Al‐Zyoud, (2021) there are wide range of ways such as host events, provide loyalty schemes, customer feedback etc. During design of new customer acquisition and retention plan for improving current CRM strategy, Pretty Lavish conducted the survey of 30 customers in order to understand how they are interacting with the fashion companies. In this survey, chosen organization was asked various questions such as how consumer is likely to engage with its favourite fashion company, from which social media platform they interact with the Pretty Lavish and rewards as well as recognition will encourage them to interact with a company.

Apart from this, from the survey it has been indentified that, 50% of the participants are likely to follow their fashion companies on the social media. Therefore, it is beneficial for Pretty Lavish to emphasis on social CRM to interact and engage with the customers. Due to technological advancement, the people are more active on the social media platforms to make the purchase so it helps the organizations to increase its customer base and generate sales as well as revenue (Rahman et al, 2022).

On the other hand, from the survey it has also been evaluated that, approx 68% participants are following Pretty Lavish on Instagram. Only 10% participants believe that, rewards and recognition (loyalty scheme) are not influence them to make purchase with Pretty Lavish. It means, 90% participants will be encourage to make purchase on the regular basis of chosen organization will provide the rewards and recognition to them. So, from the results of survey it has been determined that, to improve the current social CRM strategy, Pretty Lavish will need to provide rewards and recognition (loyalty schemes) to the customers on their purchase through Instagram.

Loyalty schemes will helps in improving the social CRM strategy of Pretty Lavish by attracting the customers and increase their retention rates. As per the view of Mohammad (2022), providing the rewards and recognition to the customers will be advantageous for companies because it aids in attracting and retaining customers, enhance brand advocacy and increase sales with the help of repeat purchase and higher transaction values. To improve current CRM strategy i.e. social through integration of loyalty schemes, Pretty Lavish will need to emphasis on Apostle Loyalty Model. According to Gunawan (2022), it is considered as one of the effective customer loyalty model that divides the customers into four categories such as loyalist, defectors, hostages and mercenaries.

 This model is using two dimensions such as repurchase and overall satisfaction in order to determine level of customer loyalty. Adoption of this model will be beneficial for Pretty Lavish because it helps in determining the highly loyal customers who are actively promoting the brand through rewards and recognition. Through this model, chosen organization will determine the categories of its customers after providing the loyalty schemes. Through this model, Pretty Lavish will determine it’s most loyal and satisfied customers who called Apostle and influencing them to become brand advocates with the help of schemes like rewards and recognition. Apart from this, Pretty Lavish can also need to focus on adopting loyalty ladder in order to ensure that customers are advanced from brand advocates. By combining the loyalty ladder selected organization can approach its new CRM strategy holistically in order to create the efficient and effective change. With the help of loyalty ladder, companies can easily determine the customers who can remain engaged with them for long duration (MBA Skool Team, 2023). Adoption of this framework can be useful for chosen business because it helps in understand its customers and develop long-term relationships with them. Loyalty ladder helps the organization to enhance customer retention, increase customer lifetime value and distinguish themselves from rivalries.

Comprehensive CRM strategy Pretty Lavish

 From the above it has been determine that, to engage the customers and retain them for long duration it will be important for Pretty Lavish to develop the CRM strategy by providing loyalty scheme. This strategy will be appropriate for the chosen organization in order to acquire and retain the customers over competitors. This strategy is using CRM system to manage and track the interactions of customers effectively (Nader et al, 2025). This strategy will help the companies to provide personalized incentives and rewards to the customers based on their engagement level and purchase history. Developing this CRM strategy will be beneficial for the chosen organization because it helps in improving customer retention, boosting customer lifetime value and repeat business as well as build stronger customer relationships and drives their satisfaction. To develop strategy in effective way to strengthen relationships with the customers, chosen organization will offer various loyalty programs to them such as point-based, tiered, value-based, paid etc.

A point program is useful because customers can easily earn and redeem while making purchase. Customers can track their points programs through mobile application, loyalty card etc (Rane, Choudhary and Rane, 2023). Apart from this, to attract and retain the customers as well as build strong relationships with them, Pretty Lavish will conduct tier-based program. Conducting this program will be beneficial for selected organization because it helps in acquiring customers by providing opportunity of earning rewards on every purchase (Belli et al, 2022). Emphasis on this approach will be beneficial for the companies because it helps in increasing customer retention, fostering brand loyalty, creating sense of exclusivity which ultimately positively impacts on their sales, productivity and profitability (Manyanga, Makanyeza and Muranda, 2022). On the other hand, after developing the CRM strategy, the chosen organization will need to measure its performance by assessing customer engagement and experience through various key performance indicators (KPIs). Customer life time value (CLV) is considered as one of key KPIs that help in measuring the customer engagement level (Nader et al, 2025). In case, if customers of Pretty Lavish will spend lot of money to purchase clothes then it means they are highly engaged with its brand. On the other hand, to measure the experience of the customers, Pretty Lavish will also adopt net promoter score (NPS) (Iyengar, Park and Yu, 2022). This KPI helps in measuring the loyalty of the customers. The positive NPS represents, organization is having good relationships with the customers. 

Apart from this, by putting the new comprehensive CRM strategy into the practice, Pretty Lavish will able to add value at each point in its value chain model. This model includes series of business activities that are undertaking by the companies in order to deliver the value to their customers. This model is consisting of five stages such as customer portfolio analysis (CPA), customer intimacy, and network as well as value proposition development and managing relationships (Khan et al, 2022). Below table representing how the new CRM strategy or plan incorporate into the value chain of the customers easily.

Apart from this, the new CRM strategy will add the value for the customers through the journey i.e. from prospect to retention. The customer journey is begins from awareness, consideration, purchase, retention and advocacy.

Conclusion

From the current CRM plan of Pretty Lavish it has been determined that there is requirement of improving its social CRM. Adoption of this CRM is beneficial for the chosen organization because it helps in improving the experience of customers by increasing the engagement with them thorough social media platforms. From the survey it has been determined that, to improve the current CRM strategy Pretty Lavish can need to focus on providing rewards and recognition (loyalty rewards) to the customers. By implementing Apostle Loyalty Model, chosen organization can determine its loyal customers and emphasis on their needs to improve their experience. This new strategy can help in strengthening the strong relationships with the customers from which they are likely to make repeat purchase. To manage the social media channels, selected organization can also adopt CRM tool i.e. Hootsuite. Apart from this, new CRM strategy of chosen organization can add value to the customers throughout their journey from prospect to retention. Additionally, after implementing new CRM strategy Pretty Lavish can measure the performance by analysing customer engagement and experience through CLV and NPS. Additionally, the proposed plan will helps in improving the overall experience of the customers by strengthening relationships with them and also encourage the growth and development of the Pretty Lavish.

REFERENCES

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