Competitive Advantage

Explain how creating and using a database creates a competitive advantage.

Creating a customer database helps companies get to know their customers on a more personal level. The company should decide whether the database should have a strategic focus or be used for tactical purposes (Chp. 16, PG. 477). Paying attention to the customer preferences and taking a note of them for the next time creates customer satisfaction and ultimately customer loyalty. There are a number of ways companies can use customer databases to create competitive advantage. The first is to make sure the database provides the customer with benefits exclusive to the implemented programs (Chp. 16, PG. 477). This means promotions must be relevant to the customer for the customer and company to benefit from the use of a database. Accurate information must be given, duplicate information should be combined, and addresses should be checked for accuracy (Chp, 16, PG 478). Second, using a database should also create a better experience for the customer, providing tailored products, that offers more benefits than competitor’s products (Chp 16, PG. 478). These things create competitive advantage. The main idea is to provide the customer with a great experience based on the gain knowledge of the customer through the database (Chp 16, PG, 479). Companies learn what their customers like and create messages that are relevant to that customer. Creating competitive advantage benefits the company and the customer.

How did Lucky Larry’s use its database to create customer loyalty?

Lucky Larry’s used its database to create customer loyalty by creating programs especially for the heavy gamblers. Lucky Larry’s used the measures from the results of the promotional programs and determined that newsletters where the better media for their targeted gamblers. To differentiate themselves, Lucky Larry’s also started slot machine tournaments designed to build enthusiasm in their key players. Lucky Larry’s also ranked...