...The company announced that its new system, which will start in April, will reward customers based on how much they spend, rather than just the frequency of their purchases, which seems to be frustrating the daily-coffee set. Customers in the new system will be able to earn two stars for every dollar spent, whereas in the past, customers earned one star per transaction. Starbucks has laid out the changes on a website that explains the two systems. In the current system, customers earn one star per visit, need 30 stars to reach the “Gold” level and need 12 stars to receive their free reward. In the new system, it will take 300 stars to get to Gold level, and they’ll need 125 stars for a free reward. Although they will earn two stars for each dollar, those who make smaller orders have expressed that they feel ripped off. Starbucks said that gaining more “stars” for higher dollar amounts spent instead of for number of transactions has been the number-one request on My Starbucks Idea, a site the company has for customer feedback. And it said that the transaction-based loyalty program, which led to customers making purchases separately, meant customers had to wait in lines longer. Since the backlash, Starbucks has been responding to complaints and now says that in stores, there will be “Double-Star Days,” meaning once a month, Starbucks “Gold” members will earn four stars for every dollar they spend, regardless of how often they come in. Starbucks will “surprise”...
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...2012 Trends in Loyalty Marketing 2 2 0 1 2 T R E N D S I N L O YA LT Y M A R K E T I N G TABLE OF CONTENTS 1 GAME MECHANICS ................................................................... 3 2 SOCIAL MEDIA ........................................................................... 4 3 TIME-BASED POSTING ................................................................5 4 PRIVACY .......................................................................................6 5 REAL-TIME MARKETING .............................................................7 6 MOBILE ........................................................................................7 7 STAYING AHEAD OF THE CURVE ..............................................8 3 2 0 1 2 T R E N D S I N L O YA LT Y M A R K E T I N G Today’s standards for measuring the strength of customer engagement – frequency, recency, monetary value, and advocacy – are really no different than those in the hit American television show Mad Men, set more than fty years ago. While the measures of success remain the same, the marketing landscape has changed beyond recognition, with enormous challenges to establishing any customer relationship at all, much less advocacy. Marketers can’t simply tack on the internet to the TV, print, radio, and outdoor options available in the Mad Men era. The internet itself is fragmented into social media, search, games, the blogosphere, entertainment channels, and conventional ...
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...In a retailing industry, department store’s target market always considers in different age groups. Myer is belong traditional department store group. In that, they merchandise quality range from average to quite good. Pricing is moderate to above average. Customer service ranges from medium levels of sales help, credit, delivery, and so forth to high levels of each. Therefore, their target market tends to middle-class shoppers. (Berman and Evans 2010, 138)Myer is one of Australian department store group which stayed at the top in customer satisfaction for department stores. According to the Roy Morgan Retail Satisfaction Report for September 2011, Myer remained top in customer satisfaction for Department stores with 89% of their customers either ‘very’ or ‘fairly satisfied’. (David Jones and Myer narrowly lead Department and Discount stores in satisfaction, 2011) At present, Myer have been issued different types of Myer cards as their customer loyalty programs. For example, Myer Visa Card is a part of customer loyalty program. The features are people can reward yourself with Myer Visa Card by spending on the things you need. People can earn Myer one Shopping Credits when they fill up their cars, buy groceries or pay bills. Shopping Credits can then be turned into Myer one Gift Cards for use at any Myer store. (Myer Visa Card Contract Documents and Credit Guide, 2011) Earn 3 Myer one shopping Credits for every dollar spent at Myer and up to 3 MYER one Shopping Credits with...
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...with key stakeholders inside the company. He also worked with the marketing group made up of loyal customers, to get some good ideas about what they would value in a customer loyalty program. The team came up with requirements and constraints for the customer loyalty project also alternatives were made to show different scenarios. The team did a great job on listing core functions the system has to perform and data flow diagrams. This project has come a long way while accomplishing many things. Now the project has to come to an end. The pilot implementation has been put into place, now it’s time to see what final changes need to be made and closeout this project. Sanjay did a great job on researching the alternatives, data flow diagrams, and making updates. It would benefit him to uses those strengths for another project helping out the IT department. Sally could have done better in the marketing department. She constantly needed caffeine but she wasn’t performing to the best of her abilities. Sam provided some much needed ideas to the interface design. Head of marketing kept submitting request for changes to the loyalty program while the deadline was approaching, but keeping everything electronic saving cost of printing and mailing coupons was a great idea. But marketing felt like giving the customer a choice to have it mailed or print it out online would benefit the customer more. This project could have staff added but it would delay the process even more opening up more...
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...There are many customer loyalty programs that I am familiar with, the first one being the “My Place Rewards,” which is sponsored by Children’s Place. Because I am an avid shopper at Children’s Place, I have found that my rewards can really add up. In order for a shopper to benefit or receive a “My Place” reward, the shopper must spend a certain amount of money in store or online but you must first activate your “My Place” reward account in order to start receiving the benefits. The benefits change with the amount of the purchase that a person makes. The higher the person, the more points that you acquire, which will eventually give you access to a coupon, an amount off, not a percent off coupon. An example of this is that I just made an in-store purchase recently to buy clothing for my son for summer and I spent around $225. With this amount spent, I received access to a $20 off coupon that was on my “My Place” rewards page. Also from past purchases, I had a $5 off coupon that was available on my account. The negatives that I found with this loyalty program was that it was difficult to use. When I was in the store, they could tell on the computer that I had a $20 off coupon but when I requested to use the coupon, they told me that I had to figure out a way to activate my account or I had to go home and print it and use it later. I was unhappy about this and thought that there should be a better way. I believe that Children’s Place benefits from their loyalty program because...
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...JUNE 2013 Bulking Up: The 2013 COLLOQUY Loyalty Census Growth and Trends in U.S. Loyalty Program Activity Jeff Berry Sr. Director, Knowledge Development and Application, LoyaltyOne Research Director, COLLOQUY 2.65 BILLION That’s the number of U.S. loyalty program memberships in 2012 Learn why that incredible figure is both good and bad news for loyalty marketers, and how you can profitably respond to it COLLOQUY.COM | 06.13 | 1 Bulking Up: The 2013 COLLOQUY Loyalty Census Growth and Trends in U.S. Loyalty Program Activity Introduction When our 2011 COLLOQUY Loyalty Census revealed that the number of loyalty-program memberships in the U.S. topped 2 billion in 2010, you could almost hear the sound of the industry doing a double-take. Now it’s time to listen for that sound again, because the loyalty tally leaped to 2.65 billion in 2012. Obviously, the loyalty industry is pumping up. And what fascinates us as much as half a billion of pure growth are the reasons behind this continued expansion. Back in 2000, COLLOQUY tallied 973 million memberships in our landmark program sizing study. By the time we published the 2009 COLLOQUY Loyalty Census, that figure had reached 1.8 billion memberships. In the 2011 Census, we noted that the rate of expansion was slowing when we saw only 16.3% growth between 2009 and the eye-popping 2 billion in 2011. But the slowdown was temporary. The current figure of 2.65 billion represents additional 26.7% growth. Where is this bulk...
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...Case Questions 1. What do you think are the sources of the information Jim and his team collected? How do you think they collected all of that information? Conducted interviews with key stakeholders inside the company, He had also worked with the marketing group to put together some focus groups made up of loyal customers, to get some ideas about what they would value in a customer loyalty program. Jim had also spent some time studying customer loyalty programs at other big retail chains and those in other industries as well, such as the airlines, known for their extensive customer loyalty programs. 2. If you were looking for alternative approaches for Petrie’s customer loyalty program, where would you look for information? Where would you start? How would you know when you were done? An alternative approach would be by Business Process Reengineering. It is the search for, and implementation of, radical change in business processes to achieve breakthrough improvements in products and services. The first step would be to identify key business processes which are the structured set of measurable activities designed to produce a specific output for a particular customer or market. 3. Why shouldn’t Petrie’s staff build their own unique system in-house? From the list of requirements, it was clear that Petrie’s staff should seek outside IT consulting to build their system. It would be too expensive and time consuming, not to mention, building a system like this in-house is an antiquated...
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...at Harrah consisted of two elements Total Reward program (previously called Total Gold). The focal point of Harrah‟s CRM was customer loyalty program called total reward. Previously the Harrah was not able to leverage the cross-market visitation which was high Customers earned different reward points at different properties of Harrah. Plus there was no differentiation with the competition. Total Reward leveraged the IT and effectively tracked customers preference, betting preference, etc. And with the Data on hand Harrah effectively customised incentives and program for the customers. It not only encouraged Cross-Market visitation (Significant growth from 13% in 1997 to 23% in 2000) but also boosted of an integrated IT network that was patented. The customers were further divided into 3 distinct segment Gold, Platinum & Diamond. DATABASE MARKETING The use of decision science tool by Harrah to predict Customers Worth over a period of time changed completely the way Harrah invested in customers. Harrah’s approach was customer centric and Harrah used right marketing instrument for right customers. As per the DBM the 3 key phases that determine customer relationship are; New Business – focussed on establishing relationship with new to business of property customers Loyalty – Focussed on strengthening relationship with customers who patronise Harrah for atleast 6 months or 3...
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...EFFECTIVENESS OF SM ADVANTAGE CARD IN CREATING CUSTOMER LOYALTY IN SM MARIKINA A thesis submitted by Agoncillo, Sherylene E. Cadiz, Lailani J. Geronimo, Mirasol A. Lorente, Jennylyn F. Malto, Camille Joy D to Pamantasan ng Lungsod ng Marikina In Partial Fulfillment of the Requirement for the Degree of Bachelor of Science in Business Administration Major in Marketing Management This thesis has been accepted for the faculty of Pamantasan ng Lungsod ng Marikina by: Name of Chair Chair Name of Advisor Advisor Name of External Reader External Reader Abstract Select (highlight) this text and then begin typing your abstract, which should be limited to one paragraph of not more than 120 words Copyright © CONTENTS Abstract ii List of Figures vii List of Tables viii CHAPTER I The Problem and Its Background 1 Introduction 1 Background of the Study 2 Conceptual Framework 4 Research Paradigm 7 Statement of the Problem 8 Significance of the Study 9 Scope and Limitation 10 Definition of Terms 11 CHAPTER II Review of Related Literature and Studies 13 Socio-Demographic Profile: Age 13 Socio-Demographic Profile: Gender 14 Socio-Demographic Profile: Income 15 Customer Retention 15 Interacting with customers 17 Building Loyalty 17 Purchase Intention 19 Purchase Frequency 20 Synthesis of Literature Review 20 CHAPTER III Research Methodology 21 Research Locale 21 Population Sampling or Respondents of the Study 21 Research Method and Design...
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...Petrie's Electronics Case, Chapter 5, Questions 1, 3, and 5 (page 151) 1. What do you think are the sources of the information Jim and his team collected? Conducted interviews with key stakeholders inside the company, He had also worked with the marketing group to put together some focus groups made up of loyal customers, to get some ideas about what they would value in a customer loyalty program. Jim had also spent some time studying customer loyalty programs at other big retail chains and those in other industries as well, such as the airlines, known for their extensive customer loyalty programs. 3. If you were looking for alternative approaches for Petrie’s customer loyalty program, where would you look for information? Where would you start? How would you know when you were done? An alternative approach would be by Business Process Reengineering. It is the search for, and implementation of, radical change in business processes to achieve breakthrough improvements in products and services. The first step would be to identify key business processes which are the structured set of measurable activities designed to produce a specific output for a particular customer or market. 5. Why shouldn’t Petrie’s staff build their own unique system in-house? From the list of requirements, it was clear that Petrie’s staff should seek outside IT consulting to build their system. It would be too expensive and time consuming, not to mention, building a system like this in-house is...
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...Chaptur 1 Nike What are the pros, cons, and risks associated with Nike’s core marketing strategy? 2. If you were Adidas, how would you compete with Nike? Google 1. With a portfolio as diverse as Google’s, what are the company’s core brand values? 2. What’s next for Google? Is it doing the right thing taking on Microsoft with the concept of cloud computing, and Apple in the fight for smart phones? Chapter 5 Nordstrom 1. How else can Nordstrom continue to provide exceptional customer service and increase brand loyalty? 2. What are Nordstrom’s greatest risks, and who are its biggest competitors? TESCO What’s next for Tesco? Where and how can it grow? Who will it target? 2. How can Tesco take its customer loyalty programs to the next level? Chapture 8 HSBC . What are the risks and benefits of HSBC’s positioning itself as the “World’s Local Bank”? 2. Does HSBC’s most recent campaign resonate with its target audience? Why or why not? BMW Questions 1. What are the pros and cons to BMW’s selective target marketing? What has the firm done well over the years and where could it improve? 2. BMW’s sales slipped during the worldwide recession in 2008 and 2009. Is its segmentation strategy too selective? Why or why not? Chapture 12 Caterpillar Questions 1. What were some of the key steps that led to Caterpillar’s becoming the industry leader in earthmoving machinery? 2. Discuss Caterpillar’s future. What should it do next with its product line...
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...their operation. Kudler Fine Foods also like to increase loyalty and profits to their organization and has been arrested in developing a system to track customer purchase through frequent shopper program to award loyalty points for redemption. Introduction In order to start this process Kudler Fine Foods we will first need certain elements that must be deployed before hand, we will be discussing the legal, ethical and security considerations for the development of this program to launch. And we will combine the separate entities into an operational system in order to track purposes of individual customers this way we are able to track the customers loyalty points for redemption for specialty foods and gift items and other products made available by our partnership companies. Ethical considerations Ethical Considerations of Frequent Shopper Program The frequent shopper program is subject to a certain degree of ethical consideration, it has been determined that the customers’ privacy will be under close evaluation in order to maintain a high degree of privacy and a overall good practice of integrity. The e-commerce has established that we will follow procedure with the protection of sensitive and personal data for our corporation and also the individuals who are considered to be our consumers. All in any contracts will be within accordance with the state’s law and Federal guidelines to protect our customers as well as the establishment. Our...
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...Loyalty = Dependence? In business, marketing has the tightest relationship with customers, the driving force of business. The relationship is based on consumer’s values and satisfaction, making the aim of marketing to identify needs of customers and provide them successfully. Successful marketing campaign results in gaining loyal, satisfied customers, which makes marketing an art of retention and development. Companies strive to maximize profit, which can be achieved by retaining loyal customers. Oxford Dictionary describes loyalty as strong commitment or allegiance. Additionally, in marketing, it means that the customer is not willing to switch to alternatives despite the marketing efforts of the competitors (Keller & Kotler, 2012). Companies need strategies to sustain loyal customers. Many believe that the amount of truth consumers place in companies might be abused, as loyalty sometimes equals strong dependence on suppliers. However, government’s role is to protect their citizens and prevent any actions that might violate ethics, but otherwise, the economy will be better off without intervention, referring to the belief of “Laissez-Faire” (Frank & Cartwright, 2013). The essay will aim to prove that loyalty does not cause overly-dependence if it does not influence ethics, and that consumers will seek for better option for themselves. The rational choice theory, which is the base of the microeconomic studies, states that individuals act rationally and choose the option...
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...Case Study 8 specialist Victoria University ‘Butcher’ doesn’t cut it! Try the fresh food By Helen Madden-Hallett, Elg & Robinson are about as far away from the traditional butchers’ shop image as could be. Their produce includes not only the standard meat fare, but also a diversified offering of specialty meats, poultry, wine (as part of a loyalty program), spices, smallgoods (prepared on-site) and seafood. Their bouquet specialty meats, fish and poultry selections are prepared on the premises and are purchased by a burgeoning number of professional families with dual incomes living in the area. The marketing effort underpinning this innovative approach to retailing encompasses new product lines, modern promotions, competitive pricing and a close eye on location. The creative team behind the image is a partnership between Phillip Elg and Peter Robinson. Mr Robinson explains: ‘Phillip is the director for the company, Elg Developments; and although we are both employees, we have a partnership agreement.’ The company has focused on their store in Williamstown, which has 12 employees in total. Phillip was born and bred in Williamstown, and has had a long association with businesses in particular in the area. He built The Strand, a well-known local seafood eatery, 18 years ago. Phillip was offered the current site in the concourse directly opposite a Coles supermarket (and the conduit to one of the main carparks) because of his professional training as a butcher and his expertise...
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...determine if the company possess core or distinctive competencies, and recommendations regarding actions the company needs to take to strengthen its competitive position. SWOT analysis is a planning method used to evaluate the strengthens, weaknesses, opportunities and threats involved in running a successful business. First we will discuss Panera Bread's strengthens. One of the very best thing about Panera Bread is that there is always fresh baked bread daily. Most restaurants offer free wifi for their guest. Another strong point is that Panera offers a menu for every time of the day and the menu also lets you decided what is healthy for you to eat. The menu lets the customer know exactly how many calories they are taking in with ordering that particular meal. The main strengthen in the Panera brand is their customer loyalty. Even though there are many strengthens there are also weaknesses. One weaknesses could be that most of the food prepared at Panera is organic. Because Panera offers fresh bread daily also means that the prices will be higher because of that option. In every business there comes room for opportunities. In the Panera Bread Company there are...
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