Customer Loyalty In Retail Sector

Customer Loyalty in Retail Sector
Role of Customer Loyalty Programs in the Retailing Sector Executive Summary: Customer loyalty
schemes (or programs) are explicit efforts by the retailers in different formats to gain the long term
patronage from the customers. Loyalty schemes are designed and developed for variety of reasons:
to reward the loyal customers, to generate more information about the customer behaviour, buying
patterns. It also helps to influence consumer behaviour, and as defensive measure to combat a
competing scheme. The purpose of this study is to describe the objectives of the loyalty schemes,
the origin its evolution over the years, the important aspects of its implementation and strategic
approaches to maximise the impact. This will also focus on the ... Show more content on
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A response from the customer to come back and repeatedly use the product or service is a definite
indicator of the customer to be loyal. Through loyalty programmes companies therefore can track
the behaviour of customer, and trends of his activities over a period of time. It can lead to customer
behaviour where customers can book earlier, stay longer, do vacationing more often, and earn
reward points for this behaviour with the brand. So loyalty programmes provide an opportunity to
learn about the customer's preferences, and expectations. Customers tend to be loyal only when they
can identify their values matching with those of the brand. This leads to brand association from the
customer's with the company's logo, brand. Eyeballs Buyers Loyalty Action Performance
Consideration Awareness There are five types of the consumer behaviour which have been measured
over particular period of time span: the percentage of consumers buying a brand, number of
purchases per buyer, the percentage who continue to buy the brand repeatedly, the 100% loyal
customers and the segment of population who buy other brands. Polygamous Loyalty: This is a
theory which is for the stationary markets, customer loyalty is divided into number of brands. The
long run propensities to buy a particular brand for a customer now a days is very less the primary
reason being the choice of too many brands in the same sector. So polygamous loyalty is actually
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Customer Relationship Management ( Crm ) At Harrah 's Company
Harrah's Company has taken the Hospitably Industry to a whole new level. Companies want to get
more information about their customers behavior and build a lifetime relationship. After a long
research, Customer Relationship Management (CRM) at Harrah's came to consist of two elements to
implement marketing tools and programs across all Harrah's properties; Database Marketing (DBM)
and the Total Gold Program.
Harrah's established Database Marketing in 1997. Under this program customer will get a Gold Card
to be used while making any transaction at any Harrah's properties. The question rose, is the
marketing program successful? After analyzing the exhibits at the end of the study case, I concluded
that the program was successful. From Exhibit 1 it seems clearly that the profits nearly double from
year 97 to 99. From Exhibit 2b, it seems that 50% of the new customer that were giving the card
came back in the next three months. From exhibit 2c, the loyalty customer visiting the casino more
frequently after receiving offers. Also, from exhibit 2d, the loyal customers spend more hours and
spend more money after receiving offers.
Using CRM in the gaming industry as marketing tool can account for strength and weakness. Some
of the strengths under the data collection through the programs are: customization of customer
service, Coding Customers, Targeting Customers, sharing customer information within the
organization, improving cost management and increase profitability. One

Effective Customer Relationship Management
The Hong Kong Polytechnic University School of Hotel and Tourism Management HTM3129
Lodging Management Lecturer & Tutor: Dr. Deniz KUCUKUSTA
Group Project Title: Effective Customer Relationship Management–Customer Loyalty Program
Class Group: Thursday, SEM004 16:30–17:30 Group Member: Leung Mei Wun, May (10626919D)
Ngan Ho Shan, Iris (10571756D) Poon Wing Lam, Yvonne (10627025D) Wan Wing Tung, Yuki
(10542306D) Wu Kit Wing Ophelia (10504166D)
Date of submission: Total no. of words:
2nd December, 2010 3,491 words
1
Content Introduction & Background Objectives Importance of Effective Customer Relationship
Management Why Hilton? Criteria of Effective Customer Relationship Program Case Study–Hilton
Hotels    About HHonours ... Show more content on Helpwriting.net ...
Successful CRM is crucial in maintaining the business so that partner companies would keep the
strong cooperation bond and alliance. For instance, hotel reward points for air ticket programme
would require both hotel and air company to work together for planning and development. Thirdly,
effective customer relationship management smoothens daily operation. The speed of transaction
with linkage to loyalty reward schemes will be fastened if an effective system is developed. This
could easily track customers' data, preferences, any record that is needed once loyal guests return.
Entire staff would be able to know the way to serve particular guests without further question. This
enhances customer satisfaction and establishes a stronger commitment between the company and
customers.
4
Why Hilton? Unlike hotels which usually adopt either Points and Rewards system, the loyalty
programme in Hilton is more comprehensive and personalized. It launches the programme –
MyWay Specials, which covers most of the loyalty system discovered in hotel industry, and offer the
most flexible choices to their members. Hilton strives to be the best role model of the industry by
offering HHonour guests with programmes for various brands, targeting different types of travelers

with their own interests. Within these programmes, travellers can make their own choice and select
their preferences, which ultimately attracts. Hilton HHonours programme is available within the 10
Hilton

Bsa 310 Kudler Frequent Shopper Program
Kudler Fine Foods is a much renowned food store, established at the different locations in
California. The main focus of the store is to have 'profit maximization' by providing quality products
at appropriate prices, in comparison of the competitors. The firm also wants to satisfy its clientele.
Through this objective, the store wants to acquire major expansion. It currently wishes to enlarge its
services by attaining perfection in the in the operational activities. Kudler also desires to increase the
'consumer purchase cycle ' which they hope will result in an increase of both profitability as well as
loyalty. Kudler 's latest idea to increase its revenue is to implement a customer rewards program that
will record customer purchases that ... Show more content on Helpwriting.net ...
Operationally, the Frequent Shopper Program should integrate into the existing standard procedures
with little to no interference with standard operations. As the new system is fairly easy to manage,
the new systems functionality will only require small amounts of user training so there will be no
issues with computer competency. No current staff or management changes will be required, but the
new program could bring an new connection to customer satisfaction and give the customer a better
attitude during the purchase. This change will also not negate or change any existing workflows
critical to the mission 's success of operations. The fact that the design of the network infrastructure
is aging, the addition this program will not have a substantial impact on the company 's current
existing capabilities. With the presumption that all of the risks involved in developing the system are
identified, the development team should have no problem in designing the program to success. Early
analysis shows that the program will most likely be developed as an enhancement to the current
POS system, rather than starting a new program, this way it will easily integrate with current
systems and existing key components all ready active. Kudler also used a POS server, which would
be a good staging ground for the Frequent Shopper database. The economic feasibility has been
determined by performing an analysis of costs and benefits. The analysis could help the

Taco Bell Unveils Game Focused Loyalty Program
Lisa Jennings' article 'Taco Bell unveils game–focused loyalty program', published on the 15th
December 2015, details how the American fast–food chain has launched a new mobile app 'Explore'.
Taco Bell's new customer loyalty program was launched late 2015, where consumers are rewarded
for "Living Mas", embodying the essence of their tagline "Living Large". Customer loyalty refers to
the satisfaction and positive emotion felt by the customer towards an organisation's product or
service (). Marketers at Taco Bell have focused on creating value for their customers as they provide
an innovative program where customers simply go about their daily lives on social media. The fresh
app stems from the growing competitor pressure while also aiming to meet long–term business
objectives. This new loyalty program has had exceptional reviews and both monetary and
nonmonetary success.
() describes customer loyalty as ....... Customer loyalty is a combination of relative attitude and
repeat patronage. Businesses work to retain customers who have both a high level of repeat
patronage and attitude towards the company. Loyal customers translate to be more profitable over
time through related purchases, increase referrals, operating cost savings etc. Although Taco Bell
dominates the percentage of market share in the Mexican–food segment, parent company Yum!
Brands desires to grow their percentage of market share in the overall fast–food industry. This forms
the basis of the company's

Rymax Essay
Rymax was founded in 1995. It has over 20 years experience as a leading marketing business in the
industry. It focuses on creating and managing programs and events that offer rewards and incentives.
Rymax offers only brand name rewards through their programs and events. The rewards and
programs are for various causes such as customer loyalty, employee recognition, player loyalty
(casinos) and corporate gifts. Customer loyalty tools include giving customers the ability to redeem
rewards or accrue points for future redemption through the points programs; giving away products
for customer loyalty; distributing retail gift card; building database through sweepstakes; rewarding
milestones or achievements; and customizing customer experiences ... Show more content on
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They have 10,000 top coveted products listed in their catalog. They offer 300 top–tier brands. They
have access to data and insight to custom designed player and customer loyalty programs. Rymax
uses social media to boost engagement as well. Rymax specializes in customizing certain rewards
and recognition programs as well as databases and customer experiences. Rymax offers exclusive
pricing. Rymax believe its practices increase the ROI of participating organizations. Rymax has
notable achievement recognition for their employee recognition program. They include: Top
Providers of Employee Recognition for nine consecutive years as rewarded by HRO Today
Magazine; Platinum Partner four years in a row for their outstanding employee programs by
Incentive Magazine; the Motivation Masters Award by Incentive Magazine; the Best Practices in
Business award by The Commerce and Industry Association of New Jersey. Rymax focuses on
"multi–generational appeal". All of these valued incentives "drive business goals." Businesses have
quality rewards and programs to choose from in order to increase their profits and retain their
customers. Rymax has a 99.9 percent accuracy rate when filling

Cabo San Viejo
Assignment 2: Cabo San Viejo by Stefan S****t and others
Course: Customer Relationship Management Faculty: Erasmus School of Economics
Content
1. Cabo San Viejo's customer base 3
1.1 General information 3
1.2 The ageing of the customer database 3
1.3 Customers are becoming more heterogeneous 3
1.4 Lack of cross–selling 3
1.5 Complaints and the lack of a loyalty program 4
1.6 Conclusion 4
2. Rewards program 4
2.1 Stimulating retention 4
2.2 Cross–selling 4
2.3 Connect personally 5
3. Structure rewards program 5
3.1 Cross–selling program 5
3.2 Program for young 'middle–aged'' customers 5
3.3 Overall loyalty reward program 5

Cabo San Viejo's ... Show more content on Helpwriting.net ...
Therefore there should be a bigger focus on 'cross–selling' from the day–spas to the Health resort.
5 Complaints and the lack of a loyalty program
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.
6 Conclusion
To conclude, it's probably safe to say CSV shouldn't be happy with the current trend of their
customer database. There is a lot of room for improvement on cross–selling but the most important
threat is the ageing of the customers. This could very well lead to a point where CSV doesn't have
enough customers to be profitable anymore.
Rewards program
It would make sense for CSV to adopt a

Essential For Measuring Our Variables
Operationalization is essential for measuring our variables of interest in order to test our hypothesis
and obtain the answers to our questions (Sekaran 197). Our variables are more difficult to measure
since they consist of subjective characteristics rather than objective. When looking at our
hypothesis: customer loyalty programs do not serve the primary purpose of increasing customer
loyalty, it is first important to consider the objects of interest, their attributes and consider an
adequate judge. Attributes are important because you cannot measure an object itself, you need to
measure the attributes of an object. In this case, the objects of interest are customer loyalty
programs, the attributes are their ability to influence customer ... Show more content on
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Once the dimensions are defined, its important to break them down further into elements.
Independent Variable: Customer Loyalty Programs
The first dimension to look at is how many people sign up for customer loyalty programs. The
element of this dimension is if these programs are properly designed to attract customers to sign up,
then most often then not, they will. If people are not enticed to sign up, the program may need to be
revised. Customers also need to understand clearly the perks of the program in order to evaluate
whether or not the program is worth joining.
The second dimension is to look at the benefits of the program to see if they outweigh the cost. This
can be assessed by using different types of rewards. For example, most customers may want to
accumulate a cash value they can put towards a next purchase (such as a Shoppers Optimum Card)
vs. a points program where they can trade their points for mini product samples or receive a free
birthday gift every year (such as the Sephora Beauty Insider Card). The element can consist of
assessing different types of program structures to see what motivates clients to become a member.
The third dimension can consider if there is a cost associated upon registering or maintaining a
member of a loyalty program. The element may consider that the benefit has to largely outweigh the
cost to become a member. For example, Sally's Beauty Supply membership is free to sign

Summary: Loyalty Rewards Work Best For Online Business
Brian Bergeron
Kennesaw State University
Loyalty Rewards Work Best for Online Businesses
Dr. Gannage
MKTG 3100, TR 8:00–9:15pm
Article 1 Review
Due Date: 9/2/2015
1. Article
Loyalty Rewards Work Best for Online Businesses
By Chad Brooks
Published by Business News Daily on June19, 2015 http://www.businessnewsdaily.com/8114–
loyalty–rewards–online–businesses.html 2. Summary
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 ... Show more content on
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Not only do people have to spend less time traveling to the store and walking around looking for
what they need then waiting in line to pay for the goods, but they also have to spend less money
because of gas prices and the discounts online businesses are offering to customers who purchase
online. This is essentially hurting offline businesses because the less people who are going out
shopping, the less people are seeing their stores and wanting to stop to shop at their store. Also,
many people are losing their jobs because the number of customers that walk into stores is dropping
so there is less need for employees inside stores.
5. Recommendations
To help alleviate the problem, offline businesses should start developing mobile apps for their
businesses to keep customers connected with the business. Also, they could start selling products
online to attract customers who online purchase goods online. For the online businesses, it would be
beneficial to provide customers with loyalty rewards in order to retain customers and have them
purchase from their company more than once. Another way to build loyal relationships with
customers for online businesses could be by offering customers incentives to bring new customers to
the business.
6. Do you feel the article topic covers relevant and current marketing trends and/or

Case Study Of The Sundio Group
Introduction
Because of rising international competition, slower growth rates, decreased population growth, and
oversupplied and mature markets, it is hard for hospitality firms to increase their market share
(Tepeci, 1999). A recent example of a take–over in this sector is Bizztravel. In their own words: it
could no longer compete with other tour operators. It is easy for today's consumers to switch among
different firms (Liu, 2007).
Hence, it felt compelled to sell the whole organization to the Sundio Group (DVHN, 2015). This is
just one example, but last year there were a lot of acquisitions and take–overs in the hospitality
industry. In short: it is clear that something must be done to gain more revenues, otherwise a lot of
organizations ... Show more content on Helpwriting.net ...
3. How does a customer loyalty program work?
A customer loyalty program is defined as a program for current customers, with the possibility for
free rewards and unique benefits when they make repeated purchase (Tepeci, 1999) (Liu, 2007). For
instance when you made a lot of bookings in a hotel, you can save up for a free night. In paragraph 4
there will be given more examples.
There is a difference between a Customer Frequency Program (CFP) and a Customer Loyalty
Program (CLP). In the first program the loyalty is to the frequency program and not tot the brand
(Shoemaker & Lewis, 1999). A frequency program's focus is to build repeat business, while the
focus by a loyalty program is to build an emotional attachment to the brand: "for the brands people
already buy" (Dowling, Uncles, & Hammond, 2003). In actual practice it is very difficult to measure
if someone is loyal to the brand or just to the frequency program (Dowling, Uncles, & Hammond,
2003). This because of the reason that the outcomes are the same (Smith,

Customer Service And The Outdoors
Introduction Due to a strong commitment to customer service and the outdoors, L.L. Bean is
recognized as a quality manufacturer and retailer of quality outdoor apparel. Likewise, the
company's focus on the stakeholders begins with caring for employees who in turn serve the
customer which ultimately results in profits. L.L. Bean serves customers through multiple channels,
but originally began, and continues to excel, in catalog sales. However, due to a changing
operational environment, the organization needed to invigorate their business model. Using the total
rewards program, the company was able to disperse new strategic goals throughout the organization
leading to much needed change and revitalization.
Strengths and Weaknesses In ... Show more content on Helpwriting.net ...
In order to facilitate the expansion, the organization had to ensure the employees were provided both
traditional and non–traditional benefits, allowing L.L. Bean to meet competitive demands and
achieve organizational goals. Providing this compensation and benefits allowed the company to
demonstrate care for the employees, which translated into customer service even though the
channels expanded. In regards to the outsourcing concerns, the company strictly enforced fair
benefits in their outsourced facility, even ending several contracts due to inadequate employee
compensation. Additionally, L.L. Bean ensured the outsourced locations rewards programs fit the
cultural needs as well.
Traditional and Non–traditional Rewards As mentioned, a key L.L. Bean response to their strengths
and weaknesses was to provide a mixture of traditional and non–traditional rewards to the
employees. In conjunction with base compensation, the organization provided performance–based
bonuses, profit sharing, and healthcare benefits as forms of traditional rewards. These traditional
awards are closely aligned to monetary awards since these benefits are commonly used and expected
in today's business environment. Although the effectiveness of monetary rewards is questionable, at
minimum these rewards provide a direct reciprocity to the employee for their

Study of Loyalty Programs
Introduction
The literature survey has provided a base for the study and given an overview of the areas where the
research could be done. It has also provided me with the relevant facts.
Objective of the study:
Study of loyalty programs of Shoppers Stop and Pantaloons.
Are these programs really effective in enhancing the customer experience.
How much profitable does the loyalty programs prove to be, for a customer centric apparel retailer.
Most customers hold several loyalty cards of competing retailers. Past studies looking into the
impact of card ownership on store loyalty showed mixed results. Loyalty cards are effective only
when customers value the rewards associated with them. This research is being done to investigate
... Show more content on Helpwriting.net ...
Hence a company should first figure out the basis of customer's buying decisions before building the
loyalty programs in order to serve them in the best possible manner.
The article Listening ain't enough stresses upon the fact that customer loyalty cards are used to
generate information about the customers in order to serve them better by developing products and
services according to them. But these alone are not enough for gaining advantage over the
competitors. Trained staff with a heart to serve the customers with customer–centric approach could
help in gaining the advantage.
A similar research Loyalty in Retail: A strategic success or a management failure states that
successful loyalty programs do not exist in vacuum. The loyalty cards provided by the retailers are
compared to the hammer. Just as a hammer does not build a house, a loyalty card does not build
customer loyalty. Customer loyalty has been used as a strategic approach in increasing customer
value and thus providing a good customer experience but it doesn't work alone. A brand value has to
be created in which involvement of the staff, quality of the products, knowledge about the customers
etc. are required.
Shoppers' Stop's customer loyalty program is called The First Citizen (Annexure X) and Pantaloons
customer loyalty program is Green Card Program (Annexure XI) through

John Deere And Co. Was Originally Founded In 1837 By John
John Deere and Co. was originally founded in 1837 by John Deere. The company has grown
immensely, becoming a world leader in the production of machinery for customers and businesses in
agriculture, lawn care, construction, and forestry. John Deere is headquartered in Moline, Illinois
and has several lines of products available. Each line offers variations that appeal to individual
customers (Yunes, Napolitano, Scheller–Wolf, 2007). John Deere, often referenced with its popular
slogan Nothing Runs like a Deere, is a well–established company worldwide with 72 factories
scattered across 18 different countries (Nelson, 2002). John Deere and Co. employs over 60,000
people (Taylor, 2014) and their products are available in over 160 countries. It ... Show more content
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Through the John Deere Gold Key Program, customers are offered the opportunity to tour the
manufacturing facility where the machines are built. Buyers can drive their own custom–made
machine off the assembly line (Anti Marketing, 2004). Offering numerous variations to customers
can be challenging for John Deere and Co. There are some limitations for customizing the product
as some combinations are not possible due to compatibility issues (Yunes, et al., 2007). John Deere
has invested a large amount of time and funds to ensure resources can be transported to parts and
manufacturing centres, suppliers, and dealerships to make customization possible. The delivery of
the final product to the customer must be completed in an economical and timely manner. John
Deere analysts have visited suppliers, tracked delivery times, determined where bottlenecks exist,
and identified ways to control and account for damage incurred during transit. This research has
helped John Deere improve operations and has increased the speed of delivery to ensure
customization was feasible (Nelson, 2002). Secondly, John Deere has invested in a supply chain
management system to manage complex operations. The system includes statistical and risk process
controls. This system is crucial to tracking and monitoring the customized products that are being
produced (Narasimhan, Schoenherr, & Sandor,

Nectar Case Study
Case Summary: Nectar is a loyalty scheme, which differentiates the market and was launched in
September 2002. A number of organizations like Sainsbury's , Barclaycard, Debenhams, and BP
amalgamated their existing loyalty schemes under one umbrella called Nectar. This scheme is
operated by an independent company called Loyalty Management UK (LMUK), this allows the
partners to concentrate on their own business. The registration is easy and is completed by filling out
an application form available at the partner's outlets and on the internet as well. The nectar points
are redeemed for free flights, meals, vouchers etc. The high spenders are attracted by rewards like
"Flights to Australia" and the low spenders are attracted by rewards like ... Show more content on
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➢ The scheme is different from traditional loyalty scheme in which merchants are pooling their
resources, which helps spread the costs associated with setting up the infrastructure and running of
such initiative. ➢ The loyalty schemes try to entice new shoppers and reward existing customers. ➢
The cost of operating such a scheme are greatly reduced due to the shared cost of having multiple
partners involved. ➢ Partners in the scheme can avail themselves of a much richer databank on their
customers, analyzing their purchases across a cross section of different products, purchased in many
different outlets. ➢ By leveraging several big brands rather than focus on one single market, the
loyalty scheme has a much broader appeal. Customer Advantages: ➢ Consumers who use Nectar
Cards at reward partners, will collect points which can then be redeemed for free flights, meals,
vouchers etc. ➢ Card subscribers can pool their points from a variety of firms rather than a single
merchant, greatly enhancing their points earning potential and making rewards more attainable. ➢
Shoppers can view how many points they have collected by viewing them online in My Nectar or
phoning the Nectar Cell Call Centre. Nectar points are exchanged for Nectar Vouchers. These
vouchers are collected at the cards subscriber's home or via the nectar call centre. ➢ Customers
perceive the rewards as more attainable due to the

Customer Service Strategies And Organizational Goals
Introduction
In order to operate a successful and profitable business, certain strategies must be put in place. One
very important strategy is customer relationship management. To ensure that every customer has the
opportunity to receive exceptional customer service and the ability to become a loyal customer, an
organization must follow these steps. First, the organization must evaluate their current customer
service strategies and organizational goals. This will help decipher strengths and weaknesses of the
organization. Once the organization's weaknesses are determined, action must be taken immediately.
The weaknesses should act as opportunities, while the strengths can be used as something to
capitalize off of. If an organization lacks a loyalty program, their next step would be to design one
that correlates with their business model and organization goals. Once an organization redesigns
their customer service strategies and customer loyalty programs, they will need to accurately apply
metrics to successfully measure the value of the changes being made.
Current Situation
The company that I selected is Dave's Riverside Garage (DRG). DRG is a privately owned auto
repair shop that operates out of Queen Anne, Maryland. The major goals for DRG are to stay
competitive with neighboring auto shops and offer the lowest possible price for their customers.
Currently, DRG's customer service attempts are lacking substance. However, DRG is
acknowledging that their customers consist

The Brand Of Brand Loyalty
Furthermore, the publication suggests that the brand loyalty is correlated with market share. So, the
bigger the company is, the more loyalty among its customers. And, this is true because the more
people get to know the company, its services, and its products, the more brand identity it will form
among current customers. Also, large companies benefit from having more loyal customers because
they engage in word–of–mouth activities which can potentially attract more customers. So, there are
many ways in which a company can increase their loyalty levels. But, when it comes to increasing
market share, a better way could involve the increase in revenues among consumers. This can be
done by opening more stores, offering products online, and by offering volume discounts. And, as a
result, the company may be able to increase revenues and potentially increase its market share.
Eventually, it could lead to an increase in the amount of loyal customers overall. Moreover, it can be
said that loyalty programs and other related marketing activities can only make a difference in the
long–run because the result are hardly noticeable in the short–run due to the fact that it takes time
for a buyer to become an actual loyal customer.
When it comes to developing a well–designed loyalty program, marketers should take into account
the value being offered to consumers with respect to the prices of the products. This means that a
company should offer reasonable rewards to the customers after they

Introduction Of London Drugs ( Ld )
Table of Contents
Introduction 1
What are LDExtras and why implement the program? 2
Factors that would Help Facilitate the Change 2
1) Program piloted with staff 2
2) Support from head office 3
Barriers to Change 3
1) Long–term staff who are resistant to change 3
2) Failing to create a guiding coalition 3
3) Competing with other customer loyalty programs 4
4) Lack of communication of vision 4
5) Lack of importance placed on training and inadequate training programs 4
6) No follow up after initiatives are implemented 5
Conclusion 5
Appendix A: Works Cited 6
Appendix B: LDExtras Program Details 7
Introduction
London Drugs (LD) is currently in the process of implementing a customer loyalty program called
LDExtras .While the ... Show more content on Helpwriting.net ...
c) as it learns customers preferences and tailors rewards accordingly. Furthermore, since LD
currently serves Canadians across 4 provinces the customization of rewards ensures that the entire
customer base will be engaged and satisfied with the program and have their diverse needs met. This
is especially important in the current retail environment as customer retention is paramount due to
the ease of access to information and surplus of options customers' have. Not only will the program
will change and enhance how the company engages its customer base it will provide valuable
information about customer. The information provided regarding customers shopping habits (visit
frequency, purchase history, average purchase value etc.) will aid the LD in its future endeavours
and be invaluable in maintaining and growing competitive advantage. Additionally program goals
and desired outcomes include:
1) Growing the customer base.
2) Increasing loyalty among the existing customer base.
3) Increasing customer satisfaction ratings
4) Increasing customer retention rates.
5) Increasing sales.

Factors that would Help Facilitate the Change
1) Program piloted with staff
Through piloting the program with staff, employees were able to get a firsthand experience with the
loyalty program. Not only did this enable the company to see if there were any problems with the
system before its public launch but it also served as a way to get staff onboard with and support the
change. As a

Mgmt 340 Week 6 Petrie’s Electronics Cases Ch 10
MGMT 340 Week 6 Petrie's Electronics Cases Ch 10
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MGMT 340 Week 6 Petrie's Electronics Cases Ch 10 Chapter 10 – Petrie's Electronic Case
1. Why don't information systems projects work out as planned? What causes the differences
between the plan and reality? 2. Why is it important to document change requests? What happens if
a development team doesn't? 3. When a project is late, do you think that adding more people to do
the work helps or not? Justify ... Show more content on Helpwriting.net ...
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?
MGMT 340 Week 6 Petrie's Electronics Cases Ch 10
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MGMT 340 Week 6 Petrie's Electronics Cases Ch 10 Chapter 10 – Petrie's Electronic Case
1. Why don't information systems projects work out as planned? What causes the differences
between the plan and reality? 2. Why is it important to document change requests? What happens if
a development team doesn't? 3. When a project is late, do you think that adding more people to do
the work helps or not? Justify your answer. 4. What is the role of a pilot project in information
systems analysis? Why do you think the Petrie's team decided to do a pilot project before rolling out
the customer loyalty system for everyone? 5. Information systems development projects are said to
fail if they are late, go over budget, or do not contain all of the functionality they were designed to
have. Is the customer loyalty program a failure? Justify your answer. If not, how can failure be
prevented? Is

The American Express ( Axp )
Background
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.
AXP was in negotiations with Rite Aid to join the program. Under their old loyalty program
(Wellness+), Rite Aid issued reward dollars (+UPs).The dollars could be used for purchase within
their stores over next two weeks, while in Plenti program the points (1 point = 1 cents) are valid for
three years and can be redeemed at any participating merchant. Rite Aid was concerned that if they
joined Plenti, customers will continue to earn points at Rite Aid but with more redemption options
and longer validity, the redemptions will be skewed towards other merchants especially the "Grocer"
Partner. In effect, they will be subsidizing a loyalty program for the "Grocer."
Challenge
As part of the negotiations, our team was tasked to identify and propose "Performance Guarantees"
to address Rite Aid's concerns.
With no data and uncertainty about other merchants who will

The Success Of The Ski Barn
In a perfect world, retailers would have plenty of loyal customers year after year to keep them in
business. However, this is not the case anymore, and keeping a customer loyal to your business is
harder than it seems. Customers are more demanding when it comes to pricing and convenience
today. If someone walks into a store looking to find something, and the business is out of stock, or
they are unhappy with the price, they will go looking somewhere else, or worse turn to the internet.
Family owned businesses are having an even harder time competing with big corporations. Often
times a family business will open up and seem to be doing fine, until a bigger more well known
company opens up just down the road. Most of the time the smaller companies are forced to close
down. This is because they cannot compete with some of the discounts that are so easily handed out
by the competition. Ski Barn is a family owned business, located in four locations within New
Jersey: Paramus (Headquarters), Wayne, Lawrenceville, and Shewsberry. They sell ski and
snowboard equipment, and offer multiple shop services in the winter, and patio furniture in the
summer. They have to compete with big name companies like Dick's Sporting Goods, Modell's
Sporting Goods, Zumies, and of course discount internet sites like Back Country, The House, and
amazon.com during the winter. Throughout this paper, I will discuss the ways in which Ski Barn
Incorporated must compete on analytics in order to survive in

Statistical And Factual Analysis Of Encompassing...
The purpose of my research paper will be to inform the reader with statistical and factual analysis
encompassing Incentives and reward based programs. We will evaluate various incentives to see if
this macroeconomic incentivized/rewards based process does indeed drive business and generate
more growth amongst companies via rewards and loyalty programs towards the general population
of consumers. This analysis surrounding incentives will also be comprised of the price and demand
structures to tie into how companies also utilize their rewards, customer loyalty plans and coupons
during different times of the seasons to boost sales and establish a bond with the ones they are
selling to, the consumers.
U.S. consumers hold 3.3 billion memberships in customer loyalty programs, the 2015 COLLOQUY
Loyalty Census shows, a 26% increase over the number of memberships reported in COLLOQUY's
last census study in 2013 (Colloquy, 2015) With loyalty programs established this helps to generate
a repeat customers which drives profits and promises future revenue. Consumers need an incentive
to purchase a product at a certain place. When Loyalty programs are in place it helps the consumer
relate to the product and funnels them towards the product in which they feel that they are apart of.
They can build exclusive points and incentives when products are purchased and are then able to use
those rewards points at a later time to purchase more goods or even get a portion of the cash back.

What Is Clubcard?
As indicated by previous studies on satisfaction and loyalty are partitioned into three classes. The
principal classification is gotten from administration and study on the satisfaction and loyalty
relationship is performed by and large and in hierarchical level. Fulfilment is the foundation of
faithfulness that effects on authoritative gainfulness. The second classification has focused on
individual level and has examined keeping up client in light of second time purchasing aim. These
variables have a critical disappointment in view of the current distinction between one's longing and
his/her conduct. The second class asserts that dedication is influenced by fulfilment regardless of the
fact that their relationship is not coherent. The third ... Show more content on Helpwriting.net ...
Consumers usually opt for those retailers that are providing them the goods of their choice in
cheaper prices. This is one of the most significant ways for retailers to understand the way
consumers shop and purchase items. When a loyalty program is introduced by a retailer, their main
aim is to target those consumers who have been with the corporation for a good long time and have
shopped with the store on a daily basis. The loyalty programs provides vast amount of benefits
which the consumers may not attain from anywhere else (Söderlund, & Colliander, 2015). From the
consumer's point of view, loyalty program are a kind of blessing because it allows them to purchase
items at a cheaper price as well as allows them to reap more benefits from the retailer through the
loyalty program. Many consumers have become part of the Tesco's loyalty program because they
believe that Tesco has provided them with vast amount of benefits for just being their loyal
customer. Many customers are of the view that the loyalty program initiated by the Tesco is the most
satisfying one out of all the loyalty programs that are initiated by other retailers.
2.4 A functional framework for perceiving positive customer loyalty

Loyalty Program and Frequent Shopper Program
Service Request SR–kf–013 Frequent Shopper Program Paper
Gerard Gonzalez
Business Systems/BSA310
October 7th, 2010
Joseph Gorman
Service Request SR–kf–013
Kudler Fine Foods founder and manager, Kathy Kulder, has requested information on developing a
system to track customer purchases through a Frequent Shopper Program. This Program will award
loyalty points for redemption to repeat customers. Purchases made by customers whom participate
in the program will be tracked and converted into loyalty points for redemption for future purchase,
gift items, and other products or services made possible through partnerships with external
companies. The following will cover information and recommendations for Kudler Fine Foods
Frequent Shopper ... Show more content on Helpwriting.net ...
Halagera also goes on to say "A 2% increase in customer retention has the same effect on profits as
cutting costs by 10%." (Halagera, n.d.). This shows that keeping customers returning to Kulder
Foods will increase business. The Frequent Buyer Program will promote repeat buisness in Kulder
Foods and will aid in profit increase, so long as the customer is satisfied with Kulder's Foods
products and services. Although there are a lot of upsides to the Frequent Shopper Program, there
are also concerns that Kulder Foods will have to take into account.
The overall cost for the Frequent Buyers Programs must be monitored consistently by Kulder Foods.
Kulder must ensure that redemption estimates are perceived higher to the customer than actual cost
to Kulder(MTI Market Techniques and Innovations Inc., n.d.). As well as ensuring redemption is
cost effective, Kulder will also have to make sure points are realistic and appealing to customers.
Customers must feel as if these points are attainable, and easily usable. This will help keep
customers interested and keep them using the program.
Kulder Fine Foods will see increased profit with a Frequent Shoppers Program. It will undoubtably
help with repeat business and customer loyalty. To keep the Frequent Shoppers Program running
smoothly, Kulder will have to ensure that it stays up to date with customers information and
shopping data. Kulder Foods must also ensure they will keep customers

Customer Loyalty Programs At The Rapid Changing Business...
In the rapid changing business world, customer loyalty becomes very important (Dick & Basu,
1994). Thus, lots of company use customer loyalty programmes to increase their customers ' loyalty.
Customer loyalty programmes are utilized by companies to offer clients with incentives to purchase
their services or goods (Bolton & Kannan, 2000). When a client purchases services or goods, the
entity provides the client with award credits or points. The client consequently redeems these points
for rewards like discounted or free services or goods. The customer loyalty programmes are
operational in different ways. Firstly, consumers must attain a minimum value or number of points
prior to redeeming them. Secondly, the consumer might earn award ... Show more content on
Helpwriting.net ...
In order to deal with this variance and to improve comparability and consistency, the AASB issued
Interpretation 13, consumer loyalty programmes (Mackenzie et al, 2011). AASB 13 necessitates that
income be deferred when the consideration offered to a client in association with a loyalty
programme warrants the client to a discount on a purchase in the future. The consideration is usually
allocated amongst the diverse constituents of an arrangement utilizing fair values. Liability for
deferred revenues must be recorded on the basis of the fair value of award credits. Fair value is the
amount of money that the award points could be traded for in an arm–length transactions (Leo,
Hoggett & Sweeting, 2012). AASB 13 doesn't mandate a particular scheme of the determination of
fair values of the incentives, but it asserts that the quantity must be based upon the fair value to
award credits holder, not the price of ward credits redemption to the issuer. Regularly, a reasonable
approximate of fair values is based upon the discount that the clients will be given upon the
redemption of the award credits. , Nevertheless, AASB 13 also concedes that in several instances,
not all points will be redeemed by the clients. Consequently, deferral of revenue must as well be
based upon the fraction of the incentives that are anticipated to be redeemed (Zack, 2009) Ernst and
Young (2013) note that according to AASB 13, the award credits

Application Of Game Thinking On Non Game Contexts
Gamification helps customers interact with brands directly. TechValidate's research found that "30%
of companies using gamification improved registration conversion rates by upwards of 50%."
Companies see gamification as a way to encourage more active online communities, reward website
visitors, and even increase sales revenue. How does gamification fit into customer loyalty? And how
can we use it retain more customers? Why Gamify Customer Retention? Gamification is the
"application of game–thinking in non–game contexts." We simply borrow the mechanics of
traditional games and apply them to uncommon concepts, like customer retention. Acquiring new
customers is expensive. So, reducing customer churn can greatly impact your company's financial
health. A study in the Harvard Business Review noted that increasing customer retention by 5% can
generate a 25%–95% increase in profit. The main objective of retention is to continue ongoing
relationships with customers. Brand loyalty is considered difficult to measure. So, experts generally
use customer engagement as an effective indicator of loyalty. An engaged consumer is more likely
to stay loyal and buy more products and services. By introducing games, businesses motivate
shoppers to indulge their competitive instincts to drive engagement. In return, your company should
notice an increase in lifetime value. When executed correctly, the LTV of loyal customers should be
15–40% higher than the LTV of your average customer.

Caesars Entertainment : The World 's Greatest Widespread...
Caesars Entertainment is the world's greatest widespread and most diversified casino–
Entertainment company to exist(Caesars). Caesars has branched out into three different continents
worldwide since they first began 75 years ago. They have proceeded to grow the company with the
opening of new casinos, expansions, and acquisitions. Generally, Caesars Entertainment operates
their resorts under the names Caesars, Harrah's, and Horseshoe, with the exception of a few of their
locations(Caesars). As of December, 2013, Caesars Entertainment owns and operates 52 casinos in
13 U.S. states and five other countries outside the United States. Out of the 52, 39 are located here
in the U.S. which reside dockside, riverboat, and land– based. Casinos that are based outside of the
United States are located mainly in England(Caesars, 10–K, 2014). Along with owning casinos,
Caesars runs and operates an online gaming business, accompanied by the World Series of Poker
tournament. Including all the facilities being managed and operated by Caesars Entertainment they
offer a total of three million square feet of gaming space, and approximately 42,000 hotel
rooms(Caesars, 10–K, 2014). Having a total of 45 million members as a part of their total rewards
program, puts Caesars in first, leading the industry in customer loyalty. At all the properties Caesars
is honored to operate, they do their best in offering an overall positive contribution to the
surrounding vibrant community. "A Caesars

Cabo San Veijo: Rewarding Loyalty Program
CABO SAN VIEJO: REWARDING LOYALTY
– Ankita Singh
CONSTRUCTING CUSTOMER LOYALTY PROGRAM:
We go through 7 strategy steps to design a loyalty program for Cabo San Viejo which are as follows:
STEP 1: PRESENT SITUATION ANALYSIS & GAP ANALYSIS
Before we suggest a customer rewards or loyalty program, it is important to understand what is the
company's long term vision, For whom this program is to be implemented i.e. who are the
company's best customers, what are their needs and expectations, the reasons for having such a
program and the expected outcome. So the first question is:
What is Cabo San Viejo's long term vision? Was the company directing its activities in overall
achievement of this vision?
The vision of the company was to ... Show more content on Helpwriting.net ...
Around 3500 new guests arrive each year of which 32% revisited within 5–6 years and 62% of
repeat visitors returned again within 5–6 years. The primary reason for not returning was the high
costs. Here we reiterate that to attract more repeat customers, value must be offered.
STEP 3: POTENTIAL PROGRAM IMPACT
In order to measure the impact, we first need to understand the reasons for implementing a loyalty
program.
Why does Cabo San Viejo need a customer loyalty program?
Retention: One of the primary reasons for most loyalty programs is o retain the loyal customers by
appreciating them and the business they generate for the company by making them feel special and
good about their association with the company.
Offer enhanced value proposition: A loyalty program which offers a value deal to its customers who
need it will get Cabo San Viejo more patronization. However, it is to be understood that not all
customers need or expect value deals.
Enhanced Satisfaction: Recognition by way of loyalty program makes a customer feel good and thus
enhances satisfaction which in turn leads to more positive word of mouth.
Positive Word of Mouth: Around 60% of Cabo San Viejo's customers called in for inquiry based on
word of mouth.
Enhance image as a responsive company: Cabo San Viejo explicitly encourages customers to
complain if unsatisfied. It is through such feedbacks that

Four Different Types Of Loyalty
Loyalty
Loyalty Concept Benefits, importance, antecedence and consequences of loyalty Phases (types of
loyalty) How to build loyalty (what will make or break loyalty) Examples of loyalty programs
Application on a company from CB side
Concept of loyalty
Academics and practitioners alike agree that loyalty is an integral part of doing business. Few, if
any, businesses can survive without establishing a loyal customer following. Surprising, however, in
spite of its obvious importance to all businesses, relatively little is known about customer loyalty.
Experts have struggled to define precisely what being a loyal customer means, and meager progress
has been made in determining what factors lead to customer ... Show more content on
Helpwriting.net ...
But as businesses grow and diversify their offerings, it's easy for a brand to lose sight of what it
originally promised to customers.
Replacements, Ltd. – a Greensboro, N.C.–based old and new dinnerware supplier that grew out of
founder and CEO Bob Page's attic – knows how to keep customers coming back. Over the last 30
years, their customer numbers grew from a handful of cards in a recipe box to a database of more
than 10 million loyal customers.
Check out these five tips from Replacements for cultivating loyal customers:
1. Know what makes your customers tick. Before you can build loyalty, you need to know what
attracts customers to your company in the first place. Replacements senior vice president of e–
commerce Jack Whitley says their company has found a niche within a niche, so they know their
customers well.
They connect buyers to the world's largest selection of old and new dinnerware. Each year, the
company gets thousands of letters from emotional customers. For instance, one husband said his
wife was stunned when she opened her Christmas present to find replacement plates for those she'd
lost in Hurricane

The And Evaluation Of Loyalty Card
Introduction :
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.
This essay will firstly discuss what is a loyalty card ? The loyalty card is defined that a plastic card
given by a business to the customer which has earned a reward to them and data collected for
business house. In 1982 the UKs biggest retailers named Sainsbury first launch loyalty card. In 1997
the chemist retail chain Boots were invested 30 million GBP in their loyalty programs which is 3rd
largest in UK because of its success. Secondly the essay will discuss about the benefits of loyalty
card in business prospective . The first benefit of loyalty card are to increase customer share. The
retailers encourage customer by offering reward to buy something which increase their sales of
product. According to Dowling and Uncls the customer can benefit such as less conginitive efforts
to find product or advantages of loyalty program. Sometimes they buy product which is not
necessary to them because they wish to earn reward points. The second benefit of loyalty card is
data collection.The retailers filled a form of the customers who want to join in loyalty programme,
By this they got an information relate to customers. It is very useful to

Harrah's Entertainment, Inc. Essay
Individual Case Assignment: Harrah's Entertainment, Inc.
1. What are the objectives of the various Database marketing (DBM) programs and are they
working?
There are two main overall objectives of Harrah's Database marketing (DBM) programs. First,
Harrah's strived to build, increase and retain customers' loyalty to their brand, similar to the way
people tend to be loyal to their mechanic or hair dresser. The strategy to achieve this goal was to
ensure that they crafted and sustained a relationship with their customers and reinforced the
emotional tie with personalized attention and fast service. The second objective piggy–backs on the
first – that customer loyalty will yield incremental business and increase company revenue. ... Show
more content on Helpwriting.net ...
2. Why is it important to use the "customer worth" in the DBM efforts rather than the observed level
of play?
The case study article defines customer worth as "the theoretical amount the house expects to win,
over the long term, from a customer based on his level of play." This calculation allows Harrah's
management to more strategically analyze and predict a customer's future spending as opposed to
analysis of 'observed level of play' which is only based on a customer's previous spending patterns.
The example contained in this article of Ms. Maranees best exemplifies the benefits of calculating
customer worth as opposed to an observed level of play. Ms. Maranees only played a limited amount
in a short timeframe at Harrah's, so if one were to solely judge her future habits by her observed
level of play during that trip, they likely would not feel that she was a customer worth targeting.
However, in analysis of her customer worth and theoretical wins, it was evident that Ms. Maranees
was likely a very profitable customer who was probably bringing a majority of her business to
Harrah's competition, so it would in fact be advantageous for Harrah's to win her business.
3. How does Harrah's integrate the various elements of its marketing strategy to deliver more than
the results of Database Marketing?
When Gary Loveman was hired as Harrah's COO, one of his goals was to change the focus from
bringing customers in to individual Harrah's locations

Effectiveness Of Loyalty On Customer Retention
This figure explain about how prospect ladder up to become a partner of the company. It is
company's service quality, trust, commitment and communication that leads customers from
prospects to partner. However, it is not really easy task for companies to achieve customer as
partner. It needs extensive effort from brand to get it.
Loyalty program
In the initial part of study, it has elaborate meaning of loyalty. Now, this section has presented
literature on effectiveness of loyalty on customer retention. Loyalty program often considered as
value sharing or enhancement instrument. Sabol, 2002) addressed that value enhancement function
is important because of ability to provide superior value to customer relationship and retention.
Loyalty program provide value to consumer in two stages. (Bolton, 2000), has explained stages in
brief that in the first stage program points are issued to customer and the second stage when
customer redeemed those points. Though these points value don't have any practical value unless
customer redeemed them. However, according to the study by (Machanda, 2004) showed that it has
important psychological meaning to customer. Points accumulation can gives customer feelings of
benefits and these benefits are able to give customer positive value perception. It is because
customer can redeemed those values later for rewards. At redemption stage, customer receives both
economic and psychological value. Thus it enhances appreciation and recognition of

Hrm 310 Week 3
Media Carts Add to Customer Satisfaction Kudler Fine Foods uses a loyalty program which, as it
currently stands, serves to "increase the consumer purchase cycle as a means to increase the loyalty
and profitability of its consumers," (p. 1, University of Phoenix, 2007); management is proposing
the implementation of a new multi–media shopping cart that will appeal to the high–end clientele as
well as track more customer data and improve sales. The Media cart gathers key information that
will enable the marketing department to customize better the shopping experience, making use of
in–store advertising, and collect data related to consumer activity (Media Cart, 2010). Although the
initial investment in the carts may seem high, the return on ... Show more content on
Helpwriting.net ...
Return on Investment for Media Carts As mentioned in this report, the return on investment is not
immediate but there are long–term advantages to using the Media Cart. The advertising and
suggestions made to the consumer can cater to reducing excess inventory before spoilage occurs,
improving the effectiveness of sales, and introduce consumers to brands which may interest him or
her; these directives can increase sales and decrease loss. The on–board navigation system will help
customers to find the products they are seeking; this allows the customer to find products without
taking time from the customer service employees. Use of the navigation system also allows
customer to find what products they are looking for; if they find the product at Kudler they are less
likely to go to another store and give the sale to a competitor. Long–term, the cart also can be part of
an expedited check out system that decreases congestion during the check out process (Media Cart,
2010). Consumers scan items as they put them into their carts and directly into bags. At the end of
their shopping experience, they move the cart onto the scale to check for accuracy and for additional
items, before they pay and leave; this process could save money by reducing customer service
personnel. The customer saves time through the use of the built–in navigation system, the system
directs the customer through the store to the correct location of the product he or she is

Developing an Effective Customer Loyalty Program
Barry Berman
oyalty programs are offered by both retailers and manufacturers to stimulate continued patronage
among consumers through discounts, cash, free goods, or special services (such as free magazines
on specialized topics of interest to loyalty program members). While retail cooperatives pioneered
loyalty programs through giving members allowances based on their annual purchases, the more
modern use of loyalty programs began with Raleigh cigarette coupons and with stamp–based
programs such as the S&H Green Stamp Company (which offered consumers points based on
purchases; these points were redeemable for a broad selection of merchandise). The most current
form of customer loyalty ... Show more content on Helpwriting.net ...
"Bud" Miller loyalty program since membership is open Distinguished Professor of Business and
Director of the EMBA program at the Zarb School of Business to all customers and each member of
Hofstra University. receives the same discount regardless of his/her purchase history. Many of these
programs are able to enroll a large number of participants due to ease of registration and low
member concern for privacy. For example, Giant Eagle Advantage Card members automatically
receive savings on hundreds of items in its stores as the item is scanned. There are several major
limitations to this program. According to one analysis, Type 1 programs do not reward loyal
behavior; they reward card
124
UNIVERSITY OF CALIFORNIA, BERKELEY
VOL. 49, NO. 1
FALL 2006
FIGURE 1. A Typology of Loyalty Program Types
Program Type
Type 1: Members receive additional discount at register

Characteristics of Program
Membership open to all customers Clerk will swipe discount card if member forgets or does not
have card Each member receives the same discount regardless of purchase history Firm has no
information base on customer name, demographics, or purchase history There is no targeted
communications directed at members
Example
Supermarket programs
Type 2: Members receive 1 free when they purchase n units Type 3: Members receive

Development Requirements for Kudler Fine Foods Frequent...
Kudler Fine Foods Frequent Shopper Program Project Plan To inspire customer loyalty and respond
to customer shopping preferences, the Sales and Marketing department of Kudler Fine Foods is
initiating a Frequent Shopper Program to track customer purchase patterns and provide shopper
incentives through a loyalty points program. (University of Phoenix [UoP], 2007). Specialty items
are more important to Kudler customers than the price of items, so instead of providing everyday
discounts for purchase frequency, Kudler has partnered with a loyalty points program to reward
customers with redeemable points for high–value gift items, airline upgrades or other specialty
foods. "Building unique rewards programs that differentiate the brand––along ... Show more content
on Helpwriting.net ...
If reports indicate that customers are purchasing a greater variety of products per customer, Kudler
can grow their market by selling more products to the existing customer base and has achieved
greater customer loyalty and satisfaction. Another success measure would be reports indicating
greater customer shopping frequency. Customer satisfaction can be gauged by a number of
indicators including fewer customer complaints, less product returns, a greater number of customer
referrals, and a greater number of referrals per customer. An increase in customer requests for new
products or services would demonstrate greater customer interest. Customer satisfaction and brand
name awareness can also be gauged through either in–store or internet based surveys. One of the
most important metrics of success is profitability. Although profitability cannot be guaranteed by
any new initiative, as long as Kudler has been profitable in the past and has not changed any major
factors that would affect its profitability such as item costs, etc., then theoretically if their customers
are making more purchases due to the Customer Rewards program then profits should increase.
Demonstrating the success of an initiative like Kudler's Customer Rewards program can help Kudler
obtain any future investment capital they may need for further

Customer Loyalty : New Zealand Ltd & Greenstone Energy Ltd
Introduction
With the passage of time, loyalty programs have been extended and also utilizing showcasing
instruments for attracting more customer loyalty. Towards any business or specific organization,
client's loyalty should be supposed and remunerated. Loyalty programs assured the customers that
with respect their money invested they will get more rewards and with time they become a part of an
organization.
In year 1996, the Bank of New Zealand, Foodstuffs Ventures Ltd, IAG New Zealand Ltd and
Greenstone Energy Ltd launched a new company named as "Loyalty New Zealand". Loyalty New
Zealand might be unknown for the customers but their main program FlyBuys becomes famous.
From all other loyalty programmes, New Zealand's is leading in the country. With FlyBuys 2.6
million card holders are connected, daily 300,000 transactions can be done and about 750,000
rewards of almost 70 million dollars should be given to customers. Approximately, FlyBuys has 75
brands and can be handle more than 50 campaigns in each month. By promoting more rewards,
these loyalty projects have better future and make the client's life better. By utilizing loyalty projects
for providing the simpler life to clients, it ensures that providing a selective system to the clients
which will satisfy their needs.
This assignment covers the topic that what are the different issues that are faced by the FlyBuys,
how market penetration can be raised and attracts more customers instead of focusing on launching
of

Case Study : Hilton Hhonours Worldwide Loyalty Wars
Justin Bryant
Case 14
Hilton HHonours Worldwide: Loyalty Wars "Hotel Raise the Ante in Business–Travel Game." This
was the headline in The Wall Street Journal that raised a predicament for the head of Hiton HHonors
Jeff Diskin. Hilton is one of the largest hotel chains internationally that has been a large access
known for their guest reward program to keep their customers happy and wanting to come back.
When Starwood Hotels and Resorts Worldwide Inc., a large competitor, unveiled an aggressive
frequent–guest program to attract more business travelers to their hotels using a 50 million dollar
budget, alarms went off inside the Hilton Corporation's head. Jeff Diskin shared a quote that
displayed his concern for the competitor's advancement; "These guys are raising their costs, they're
probably raising mine too. They are reducing the cost–effectiveness of the industry's most important
marketing tool by deficit spending against their program. Loyalty programs have been at the core of
how we attract and retain our best customers for ever a decade. But they are only as cost–effective
as our competitors let them be." The business traveler market is one third of Hilton's overall guests.
The Hilton brand was controlled by two unrelated programs, Hilton Hotels Corporation (HHC)
stationed in Beverley Hills California, and Hilton International (HIC) established in London,
England. In 1997, the two corporations unified to Hilton Worldwide. By merging into one, the
companies

Marketing Cost And Intruding New Products
Introduction
After studying the two options, I am in the favor of the second option that is of market penetration.
As per Arkolakis, C, 2008, market penetration means focusing on the marketing cost and intruding
new products. Fly Buys is large business with having almost 2.5 million of card holders and among
these number, 1.3 million is of active households. It has been observed that in New Zealand, around
30,000 times the card is swiped in a single day. It is seen that the benefits of Fly Buys is more for
the customers as comparing with the supermarket fuel discount schemes (Wright, K., & Baumann,
C. 2007).
Opportunity:
As selected previously the Market penetration is good option for the company to have growth in the
coming years. This strategy focuses on the marketing and sales to have deepen effect that before.
Moreover, the people are preferring to buy with the swipe cards to get rewards. So, it is good to
have more brands in the has exiting market rather completely as new program. Fly Buys already has
a market and well known loyalty program. So it would be less investment tool for the company to
adopt market penetration
Challenges:
There are some challenges that are faced while implementing the market penetration. Some of the
limitations are described as,
The profits after the investment to attract more customers doesn't work sometimes.
The saturation point of the market that is the customers are satisfied.
If all the customers are existing ones. (Neil

Marketing MA Management and International Business Essay
Marketing MA Management and International Business
Introduction
CRM is a term for methodologists, technologies and e–commerce capabilities –used by companies
to manage customer relationships.
(Foss, 2001:1) It is also called customer management, customer care and sometimes customer
centricity or customer–centric management.
(Brown, 2000:1)
All the names and definitions of CRM have customer, as its core–it is the management of customer
relationships, which attempts to revolutionize marketing and reshape entire business models.
To survive and grow the business must make a profit. To make a profit it has to find people who are
willing to pay more for its products/services than they cost. Therefore profit comes from ... Show
more content on Helpwriting.net ...
It is the result of the company creating such conditions for the customer so that the latter continue to
purchase from the organization –preferably for lifetime. For retailers the benefits of having loyal
customer base are enormous.
These are just few of them:
1. Companies can boost profits by almost 100 percent by retaining just 5 percent more of their
customers"( Reichheld, 1996)
2. It costs much less to keep a customer than it does to– recruit one.
3. Advertising costs are reduced. A loyal customer acts as an advocate of the company and helps
attract new customers. (Word –of– mouth advertising) (Lecture notes, 2004)
The question is: "Can the customer loyalty be created and retained for life these days?" or
"Is the loyalty a 'Holy Grail' and the retailers can only achieve a slight margin of preference for
certain time?"
A small survey into the types of consumers according to their degree of loyalty, the loyalty schemes

with its advantages and drawbacks will possibly shed more light into this topic.
According to J.Cross (2004) there are four main types of customers:
1. Switchers
In any market there are customers who are loyal to the suppliers

Brand Loyalty, Service Quality And Satisfaction
Recent studies focused on loyalty concept in services sector. Brand loyalty is receiving great deal of
attention in telecommunication sector. So there is a need of introducing comprehensive brand
loyalty model. This study attempts to provide a broad view of brand loyalty by proposing a model
and testing its potential antecedents.
The antecedents included in the research are service quality, satisfaction, trust and commitment.A
pilot and main study was conducted to test the hypotheses. A sample of 475 customers of cellular
network providers was selected. The results depict that in mobile phone network market, service
quality is considered as most important factor of brand loyalty. An indirect positive relationship of
service quality and satisfaction to brand loyalty has also been affirmed. As customer retention is
critical for strategists in dynamic world of telecommunication sector. So it is important for operators
to devise well–structured customer loyalty programs for protecting the customers' base line.
Key Words: Brand loyalty, services sector, service quality, satisfaction, trust, commitment,
telecommunications. Introduction
Over the past four decades brand loyalty has been recognized as a focal point of marketing
literatures and for practitioners. It is considered as a contributor to build and maintain brand equity
(Aaker, 1991). Some sophisticated analyses suggest that brand loyalty reduces further marketing
efforts and cost. Statistics show that it costs 6 times less

Customer Loyalty In Retail Sector

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