For this purpose, the firms are of continuous effort in the mining of customer data so as to explore the customer insights and to increase loyalty among them towards the firm. Data mining through data analytics helps the company to know to what extend the customer is satisfied and customer loyalty is there for its products. Accordingly, necessary improvement measures can be adopted by firms by implementing customer loyalty programs. However, such customer loyalty programs are incorporated in almost all the firms like provision of discount, gift coupons, rewards etc. To create a unique customer experience, the firms have to sweat more on providing personalized customer experience which is unique and grab more customer attraction to the company (Larose, D. T, 2014).Individual needs of the customers are vital focus as it can contribute to more customer loyalty. Customization of products or services is hence one of the widely used element in promoting customer loyalty. In order to increase the customer loyalty and to meet its objectives, firm uses data analytical tools that identifies the key areas of customer loyalty to the company.
However, the issue of enhancing of customer loyalty is still a tough scenario for firms. Customer loyalty is nothing but the conversion of the first time customer to repeated customers and then to make them brand advocate. This process is not an easy task due to the numerous competitors in the business market. However, the company policies and strategies can be framed and made effective with the help of data analytics tools. It is evident from other companies in the industry that getting new customers is a costly affair as it cost five times more to the company than retaining the existing customers. Extensive promotional and marketing techniques along with competent business strategies and well execution of the business activities may be need to get new customers (Homburg, C., Müller, M., & Klarmann, M, 2011). When sales volume of a company to the existing customers is 60% to 70%, the same for new customers can be just 5% to 20%. Also, the profitability from the existing customers can be more than that of from new customers. When customer churn is reduced, the profitability can be increased to around 125% as per the general trend in the retail industry.