Customer loyalty leads to long
term benefits for the firm. In addition to this organizations are now
considering loyalty marketing as it gives an advantage to organizations over
their competitors. There are some
customers that are known as truly loyal customers since they always prefer
buying from one store rather than the competitor. With all such benefits in
view organizations are always working to figure out more ways through which
customer loyalty can be achieved. A way of gaining this customer loyalty is by
understanding the needs and wants of customers and then working towards
achieving those. Companies usually use relationship marketing that means
creating strong relationships with customers as this also gives them a
competitive edge (Szydlowska, 2018)
The retail sector in Oman has
made great success over the years that have brought benefits in economic terms
as well. If we look at the economic figures we can see that the in the years
2015-2017 the retail sector made a contribution of 8% to the GDP of Oman that
means that yearly the sector contributed to the GDP more than 2 billion. Many
people hold an optimistic view about the future of the retail sector in Oman;
they predict that by 2021 GCC will become more development of around $300
billion. This project will create more jobs directly and indirectly. The real
question is how the retail sector of Oman can maximize customer loyalty. A very
simple definition of the retail sector is that it is the one involved in
selling goods and services through supply chains to customers in order to gain
profits. This procedure of retail sector
firms includes production, warehousing and finally distributing the prepared
products to the customers. The most prominent example of the increase in the
retail sector in Oman is that how rapidly huge shopping malls are being
constructed. Shopping malls are
considered as a one-stop place where the sellers can meet the people willing to
buy their products (Kindi, 2019).
Even though the retail sector of
Oman contributes so much to the country’s GDP very little research has been
conducted hence, the information available is not sufficient. Retail sector
contribution in Oman’s GDP is near to what the secondary sector contribution is
i.e around 9% of GDP. Research conducted
in 2017, showed that the number of people employed in the retail sector of Oman
has increased to 36000. However, it is important to keep in mind that these
researches do not differentiate between the retail sector and the automotive
sector. So basically the 13% ratios of organizations that have been found
include both the sectors. In order to achieve 65% of the ratio entirely in the
retail sector, there need to be some reforms. One example of such changes is
that "educational infrastructure" should be established in order to
benefit the youth of Oman. The important issue that policymakers face is how to
make sure that the educational reforms then produce results that will meet the
requirement of the labor market. This issue can be resolved by doing a detailed
study on what career, skills, and knowledge will aid the development of the retail
sector in Oman. This will prepare individuals for middle and top positions in
the organizations (Kindi, 2019).
By tradition retails businesses
were owned and run a small scale level. In Arabic, such markets are known as
souk that is still present in towns of Oman. Over 90% of the retailers were
based on a small scale. The products that were to be sold were purchased by the
owner and there were not set prices rather the price was charged by figuring
out what the consumer will be willing to pay. The price at which the products
were bought by the sellers was determined by the producers. The popular Jumma
bazaars used to take place weekly where all sorts of products were sold like
livestock. Today too Jumma bazaars are quite an attraction but now there are
usually done for the sale of a second-hand product. Homemade products and
handcrafts were sold in souks. Livestock's are also sold in some souks, for
instance, Sinaw and Nizwa. This has
increased the number of people employed that has increased the spending in the
economy, especially in the retail sector. This has led to an increase in the number
of big shopping malls. International chains like Carrefour, Spinney's and
Sultan Center have also opened their doors in Oman. All this has led to a boom
in the tertiary sector of the economy (Kindi, 2019).
References of Most Beneficial Ways to Build Customer Loyalty in Retail Industry in Oman
Kindi, A. A., 2019. A roadmap for the retail
sector in Oman. [Online]
Available at: http://www.omanobserver.om/a-roadmap-for-the-retail-sector-in-oman/
Szydlowska,
K., 2018. Factors impacting on customers’ loyalty in retail sector. Case
study of Waitrose. s.l.:GRIN Verlag.