Loyalty Programs in Indian Retail

Loyalty programs include frequent flier miles or points systems associated with credit card offers that can be used only with the original company, creating a perceived loss or cost when switching to a competitor. Most programs are able to get consumers to spend more money just to get to free or bonus item.

Which basically means to determine the value to customers and to initiate relationships, for example, the Tesco Clubcard scheme allows them to track the shopping habits of British families around 13Million. Tesco Clubcard loyalty is the most successful program in the world linked to Tesco customers to understand the loyalty and profit. Bonuses Tesco include: 1 point for every £ 1 that the customer pays, they can also get weak points when the items on special offers, and be received vouchers worth points that have been saved any money spent, and deals Clubcard value of 4X can be used in store or online this how long term relationship Tesco focuses with their

Thus, companies seek to strengthen customer loyalty. Brand loyalty is considered to tilt the consumer to purchase the package / product specific brand (Jacoby and Chestnut, 1978). Later, Oliver (1997) defined loyalty as "a deeply held commitment to REBUY or repatronize preferred product / service consistently in the future, thereby causing repetitive same-brand or same brand set purchasing, despite situational influences and marketing activities, which would result in causing switching behavior "(p. 34). This conceptual definition covers two different aspects of loyalty: the behavioral. This is consistent with an integrated conceptual framework proposed by Dick and Basu (1994), that customer loyalty is regarded as a "power relationship between the relative position of the individual and repeat

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.

Implementing a frequent shopper program will also help provide high value incentives by initiating a partnership with a program providing loyalty points. Such a

In the loyalty program literature on the FXmedia’s website (http://www.fxmweb.com), FXMedia (2011) states “With intelligent customer segmentation and targeted campaigns, each member of your program can feel like they are customers of their own "personal company", where everything is designed around their lifestyle and purchase behaviour patterns.” (para. 2).

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?

On the technology side of this programs, a data management system would be need to be constructed and maintained in order to keep track of the multitude of customers and their accumulation of “loyalty” points. This data management system would service all of the Kudler Fine Foods stores in ensuring that the all of the data is integrated for new customers, customer information is updated, and that duplicates are prevented. To allow customers to redeem their accumulated “loyalty” points, web servers would need to be set up to assist with the vast amount of data. Also, redundancy of the said servers would need to be implemented in case there is a hardware or software failure. The most important piece of the “loyalty” program is the card itself. It is

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.

desirable. In my research, JPMorgan Chase found that more consumers came inside the branch to

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

American households on average hold memberships in 29 loyalty programs spread among the retail, financial services, travel and various other economic sectors, but are active in just 12 of them. In 2012 these numbers were just 22 and 9, which represents a decline of an active user rate.

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.

* 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.