Consumer Engagement - Essay Example

Introduction

Brand community is an important step to understand consumer engagement, commitment towards a brand. It has been studied thoroughly in various industries. However, the study of brand community hasn’t been scrutinized in a Swiss watch industry where it seems that the whole communication is driven towards the individual to mainly appeal the self-interest, without any notion of group.

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On the one hand, based on text analyses of 18 swiss luxury watch brand’ websites, the main themes are exclusivity, heritage, excellence, and mainly target the consumers on an individual level with their way of communicating.

On the other hand, the literature on brand communities suggest that it is a very powerful marketing tool for companies to master which can ultimately lead to an increase in sales. However, it appears that the top swiss luxury watch brands do not take (enough) advantage of such communities.

Churn Rate

Business acknowledges the difficulty in acquiring new customers. To keep the business afloat, most of the Swiss companies focus on strengthening the existing relationship with loyal customers without investing a lot of time and resources to get new customers. Managing to increase customer retention even with about 2%, it has a positive effect on profits and also leads to cutting expenditure costs. Companies with a high retention rate grow faster.

Customer Lifetime Value

On this aspect the core element is value of the “asset” which refers to the customer bases which has sustained the business for long. In respect to the research, Swiss companies need to put much effort and invest in creating healthy relationships.

CLV factor helps in quantifying the possible revenue generated by a customer in promoting the business through purchase and often ends once they stop making purchases from the premise.

Rolex

In 1931, Rolex invented and patented a self-winding mechanism with a free rotor, called the Perpetual rotor, based on a principle that would later be adopted by the whole watchmaking industry.The self-winding mechanism consists of a half-moon-shaped oscillating weight, which pivots freely on its central axle, in one direction, then the other with the natural movements of the wrist. It transmits uninterrupted natural energy to the watch. The oscillations of the weight create energy which is stored in the mainspring, and provides the watch with a constant and stable source of energy. The Paraflex is an exclusive and highly efficient shock absorber developed and patented by Rolex. Validated through extensive shock testing and laboratory measurements, it improves the shock resistance of Rolex watches by up to 50 per cent. The innovative geometry of the spring, designed by dynamic 3D modelling, ensures that it remains firmly positioned and with no risk of deformation. A tiny component making a huge difference.

Rolex watches have proved themselves from the start in the most extreme conditions imaginable – from the depths of the deepest oceans to the summits of the highest mountains, in the air and on the race track. And to ensure that all Rolex watches can live up to these high expectations, every single one is tested to extremes before it is allowed to leave the Rolex site.

Conclusion

The Swiss watch industry can be defined as a legend in creating luxury watch brands that are revered as timepieces possessing the label ultimate success and exclusivity. It is a mark of achievement for the consumers a significant milestone in life often expressed in regards to design value, craftsmanship, and quality. Since the Swiss watch industry dominated the market in the past, and amid decline in sales, the question remains on whether the legendary companies have the capacity to create messages that resonate with the contemporary consumers in exploiting the benefits of brand community.