Cabo San Veijo: Rewarding Loyalty Program

Cabo san viejo is currently facing a problem of increasing competition and customer retention. To solve this, there is a dilemma of adopting a loyalty program or not. However our mission is only to meet competition and increase sales and not to resort to loyalty programs.

(Dick & Basu, 1994) Identify Customer loyalty as the strength in relationship between a relative attitude of an individual and the individuals repeated patronage. (Selnes, 1993)States customer loyalty comprises of the chance of repurchase, chance of swapping and willingness of recommending the service to others. Higher customer loyalty leads to higher switching barriers. (Hepworth & Mateus, 1994)State that customer loyalty is the customer’s intent of re buying the same service or product from the same company.

Customer loyalty plays a very vital role in an organization’s success or not always, is a very interesting debate. It has been suggested at several literature that loyal customer generates ongoing revenue and they also assist in generating profitable business income to any organization. At the same time research also suggests that there are other views available in relation to the concept of loyalty. The important factor to understand is weather those factors lead to long term business profitability or not. In my opinion regardless of other considerations, customer loyalty plays a great input in the business benefits and revenue. Today’s literature review will put some light on both customer loyalty as well as other consideration. It will further emphases the importance of the customer loyalty aspect and its impact on the revenue of the firm by supporting the concept of customer loyalty.

Developing a loyalty program is challenging. You team must understand what will keep your current customers interested and what will spark them to purchase multiple times.

Is the customer loyalty program a failure? Justify your answer. If not, how can failure be prevented? Is it important to avert failure? Why or why not?

Over the decades there were tremendous amount of challenges for every business. Customers have more knowledge, they have more options, and they have higher expectations. Customers are more informed with the humungous development in technology. Having more options in front of them, expectations has surpassed in retail industry. Loyalty is a customer having faith that your organization’s product or services offered is the best for them. It is the process of tapping the buying pattern of customers in a store based on their preferences. Customer loyalty is significant because it is economical to retain the old customers rather than acquiring new customers. So, organizations employ loyalty programs which reward customers for their repeat business.

There could also be different tiers within the loyalty program. Once consumers reach the second tier of the loyalty program, they can get even more benefits. These consumers would just have to spend more money to reach the second tier of the rewards

In order to motivate the sales force to produce the highest number of clients, describe six (6) features of an effective total rewards program.

According Baker M (2000), loyalty schemes is the “Overt attempt of exchanging partnership to build a long term relationship association, characterised by purposeful co-operation and mutual dependence on the development of social, as well as structural bonds with consumer”.

In this article, Brooks discusses how online businesses as well as regular businesses differ in benefitting from loyalty reward programs offered to customers. With the new age of technology becoming more and more prevalent, customers are less likely to actually travel to stores to purchase goods from businesses. The ones who do typically go to the places that

Then, every six months before May 2018, analyse how many new customers had signed up for the loyalty scheme or how many new customers had gone to the website and if the amount has increased than what they had before, leave the strategy as it is but if it is not, the business should find out what the problem is and solve it. The last three-month point before the due (March 2018), the business should again analyse the numbers and comparing it with the objective, and see how close the business is in attaining the goal.

While I’m an atypical U.S. consumer who doesn’t buy into marketing hype, I do have strong product/service loyalty affiliations. I’ll try to keep my Journal entry under 1000 words! I like to revisit the meaning of familiar words. Merriam-Webster (n.d.) defines loyalty as, “The quality or state or an instance of being loyal”. This is exactly what brand loyalty and loyalty programs are trying to create: an ongoing experience with multiple touch-points that captures followers and keeps them engaged through rewards, added value, and “prestige”. The goal is to lengthen “the lifetime value of the customer” (Tanner & Raymond, 2010, p. 284) which helps to maximize profits.

Customer loyalty is much harder to obtain that customer service satisfaction. The most important first step is to satisfy the customer by meeting their expectations. Customers only give a company one chance and if they aren’t satisfied they will not do business with that company again, as well as tell others of their experience. The next step would be to exceed the customer’s expectations. If a business goes above and beyond to assist the customer they begin to build loyalty. The next step is to truly surprise the customer. In order to dominate the marketplace the company must find a way to make them selves stand out with their product or service, accompanied with phenomenal customer service. Once this has been done customer satisfaction and loyalty will be gained. “Acquiring a new customer can cost four or five times more than keeping a current customer” (Bestmark, 2013). So it’s essential to keep the current customer’s happy and coming back for more.

Building loyalty with an organization may consist of a manager encouraging leadership skills, working with other employees, the treatment of employees, values associated with the organization and toward others, striving for a team concept, and development and growth opportunities.

* Customer loyalty program. The company secured a high level of customer loyalty due to its membership program and its general approach to customizing services to the needs of every customers.