Summary: Loyalty Rewards Work Best For Online Business

Marriott International understands that high customer satisfaction is directly linked to success. With so many options available to consumers, brand loyalty and repeat purchases are crucial to survive. In 2011, Marriott introduced the Marriott Rewards program (Marriott, p. 8). The loyalty program lets travelers earn points by booking a hotel room, shopping with partners, booking meeting rooms, referring friends, and more. Any amount

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

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.

Lack of human contact- online shopping means they won’t be able to have face to face contact and also won’t be able to get customer service. This might make customers not want to shop online as they may want to have customer service in

In addition, a huge benefit of shopping online is that it allows product and specification comparison so you can purchase what you need and pay less. Online stores have a lower overhead than the traditional stores offering better deals, and the consumer is able to find the product they want at a better price. In traditional brick-and-mortar stores, sales have limited quantities at hand, but online stores are able to keep a bigger inventory giving online shoppers more opportunities to find a bargain. In fact, shopping at several stores at the same time guarantees the consumer the best deal. Shopping online is simple, and finding the right product is easier. If you are shopping for a digital camera at the store it might be a little overwhelming to see the camera selection with so many specifications. Sales representatives can sometimes be misleading in an effort to make the sale. Online side-by-side product comparison will allow the consumer to

Even though the theoretical model suggested that winning loyalty is a long-term process and might be affected by some internal and external factors, in the case of Tesco, it was very much a positive impact helping to enhance the buying experience of customers, along with capturing high marketing share. Das (2009) stated that there are many factors that define the impact of loyalty schemes. Some customers are price conscious, meaning loyalty points do not matter to them. On the other hand,

The article “Personalized Pricing” by Olga Kharif explores the emerging and growing concept of personalized pricing and loyalty programs. The author offers the example of a shopping mother that logs on to Safeway’s Just for U site to see her personalized offers. When she logs on, she views process set for her by algorithms, on items she buys frequently. Later, at the supermarket, she starts shopping using an electronic list that keep track of her specials, and finally checks out using her Club Card or phone number and receives the discounts she loaded; while Safeway gets more information to tailor future marketing pitches.

Furthermore lately there have been some complaints and remarks about the lack of a loyalty reward program. Returning customers feel they should be rewarded for bringing their business to CSV. They feel the need to feel appreciated for being a returning customer. One client for example said: “All of us loyal customers think that. If I’m a return guest at CSV and I’ve been coming here for years, I’ve obviously got the money to afford it, so it’s not about money and it’s not about the tangible value of the rewards” (P8, customer quotes). These returning customers basically claim there should be some sort of reward program or another way to make them feel special and appreciated, they want to experience that wow-factor that makes them feel like they are the most important customer of CSV. Also most of CSV’s competition is using reward programs. The customers therefore expect CSV to do the same.

In May ’15 American Express (AXP) launched a coalition loyalty program called “Plenti.” Under coalition loyalty programs, members can earn and redeem points by shopping at participating merchants (e.g., Exxon, Macys, Rite Aid and ATT.) The program helps consumers to earn rewards faster and lead to a higher level of engagement with a program which provides merchants an opportunity to attract new customers and run cross-promotional campaigns. However, the biggest challenge in launching the program was signing up merchants and building an economic case for shifting away from proprietary to collaborative program.

Throughout the years customer loyalty has grown to be one of the central goals of modern businesses. The longer you bind customers to your business, the less costly these customers become to serve. Over the years these customers become loyal and at some point they even become business builders. They are willing to pay premium prices, they spend more and they bring in new customers. Loyalty programs (discounts, gifts and such) are meant to act as a gate to improve the match between customers and their preferences and thus should benefit the customer. Others, however, claim that loyalty only chains consumers by making them more dependent on producers. Producers have great interest in more information on this topic so they can use this for their own marketing strategies.

In spite of the great practical approach the impact and evaluation of loyalty card are very limited in terms of academic interest because the effectiveness of loyalty program has questionable from the customer behavior point of view. We refer some studies to evaluate the impact of loyalty card in business.

The availability of on-line purchasing allows the consumer to thoroughly research their product and search for the best price without having to drive all over town and waste gas and time doing so. On the other hand, what does this do to the traditional retailer? Does it mean that the car dealership or the grocery store becomes obsolete? No, I would think at the very least that those locations would become distribution hubs for localities. Their personnel would be responsible for transporting goods to the locations specified by the buyers.

Loyalty programs (either ‘on the shop delivery ' or ‘web based ') can be classified either based on types of rewards and recognition tools used or the mechanism by which customers earn their rewards.