...The Effectiveness Of Loyalty Cards To Build Store Loyalty. The Case Of Tesco YourFirstName YourLastName University title EFFECTIVENESS OF LOYALTY CARDS TO BUILD THE STORE LOYALTY Abstract The main purpose of this research is to assess the effectiveness of loyalty cards and identify how loyalty cards build store loyalty. The research entailed selecting a survey from a sample of British households, which included 175 loyalty card holder and 175 non loyalty card holders. The data involved sending of a structured questionnaire to potential participants via email and the result was expected back in a period of two week time. Both the qualitative and quantitative methods of data analysis were used, Cronbach’s Alpha and Independent T-Test. The qualitative analysis was done with the use of content analysis. The findings from the research revealed that loyalty cards are less effective to build behavioral store loyalty but more effective in influencing attitudinal store. Introduction Considering the current economical crisis, new and existing companies have a reason to establish as well as maintain customers and earn profit as much as possible. New trends have emerged in the market which involves shortening products life cycles, and specialization in service area as well as focusing on customer preference, (Lee et al, 2010). Different countries adopt different methods of implementing customer relationship management (CRM). Traditionally, companies focused...
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...Customer loyalty has become a central goal of modern business. With each additional year of a relationship, customers become less costly to serve. Over time, as the loyalty life cycle plays out, loyal customers even become business builders: buying more, paying premium prices, and bringing in new customers through referrals (O’Brien & Jones, 1996). A rewards program can accelerate the loyalty cycle, encouraging first or second year customers to behave more like a company’s most profitable tenth-year customers – but only if it is planned and implemented as part of a larger loyalty management strategy (O’Brien & Jones, 1996). 4/5 consumers agree that companies should reward loyal customers instead of offering the best deals to new customers. This is particularly relevant to FMG who strives to compete on quality, not price. FMG has the need to adapt its current loyalty program to be more in-line with modern discussion around the topic. West (2004) found that when monetary rewards are given they tend to be spent on day-to-day living and the reward is not as morale boosting as hoped. Our current 1% discount per year model thus fails to provide our clients with the intended feeling of goodwill towards FMG. Moreover, as customers become accustomed to receiving a reward under a loyalty program they begin to view the rewards as an entitlement (Haisley & Loewenstein, 2011). This implies that while our reward magnitude is increasing over time, their perceived value will not increase...
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...Brand loyalty Click below Link for Answer http://workbank247.com/q/brand-loyalty/3937 http://workbank247.com/q/brand-loyalty/3937 This assessment asks you to write an essay on the topic of brand loyalty. The essay question is: Is the use of rewards and loyalty cards an effective way to build brand loyalty?In your essay you need to examine the affect of brand loyalty on the consumers’ purchase and product involvement and their decision-making process.Preparing for your essayYou need to do research using relevant academic and industry sources and prepare an argument.Below are some steps to help you gather the relevant information and prepare your essay.Step 1: Develop an understanding the marketplace and the current rewards systemIn an attempt to win the “supermarket war”, Coles has recently introduced a revised loyalty rewards systems.Please go online and review the details of the reward system on the Coles website and review the case study story called “Has Coles got revamped flybuys right?”See website link to B &T Magazine on Interact site In addition to these sources, you need to understand the situation in the market place- so it is a good idea to search for other media stories related to loyalty programs in other supermarkets.Step 2: Theory about brand loyalty and the decision-making stagesYou need to include theory in your essay, so in addition to the text book, you need to find some academic journal articles. Please use the followingtwoarticles:Bridson, K., Evans...
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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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...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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...Walmart Customer Loyalty Program Save Money, Live Better, Reward Yourself! Travis Godderidge Rick Hayes Darrell Johnson Chad Mikels HBM 581 Services Management Section 2 Team 5 February 24, 2013 [Type text] Table of Contents Executive Summary Background Research Companies researched, program names and descriptions Description of the Proposed Program Company overview Target customers Suggested Program Names Features and Benefits Terms and Conditions Duration of the Program Initiating and Marketing Tracking Device for Customers Estimates costs to implement and sustain the loyalty program Summary and Recommendations References 1 2 3 8 9 9 9 10 11 12 13 14 15 16 Executive Summary In the fierce world of global discount retail competition, differentiation is critical to long term success and survival. Walmart was founded on the differentiating factor of the lowest prices for the highest quality products. While this has served Walmart well and will continue to do so with global sourcing and supply chain management to secure the best products at the best prices, an expansion of the services provided to the customer and the ability to obtain demographic spending information and trends will prove invaluable to Walmart’s continued success and rapid global expansion. Additionally, programs that help retain customers once the customer has entered the store will increase market share more rapidly and increase...
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...Customer Loyalty 2013 (Promotion change) GNC new Member Pricing Program known as the Member Price Program (allows members to access GNC's products at a reduced cost) A previous GNC loyalty program, known as Gold Card, has nearly 7 million active members who will be transferred to the new program. For GNC, which sells commodity items such as vitamins and supplements that customers are likely to repurchase on an ongoing basis, a strong loyalty program can be a true differentiator from its competition. The brand believes its new pricing program is just that. - In less than 2 months, GNC Holdings has added 3 million new customers to its Member Price Gold Card loyalty program that rolled out during May and June Company accomplished its primary goals regarding the new Membership Price Gold Card customer loyalty program: * New Gold Card member acquisition * Increased flexibility to manage pricing * More transaction growth spread throughout the month * Improved price perception * Better program awareness among new customers. Most significantly, the new Membership Gold Card program addressed the biggest customer complaint against the previous version of the program, which was the inability to use the card throughout the month. Under the new Member Price program, customers save up to 50% on every item everyday at any GNC store or on their website. Under the old program, customers paid $15 for a one-year membership and received 20% off purchases during the...
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...MKTG7501 Consumer Behaviour “Loyalty cards cost shoppers millions” Introduction - Everyday Reward Card What is “Everyday Rewards Card”? The Everyday Rewards Card is an initiative from Woolworths that provide a series of benefit rewards to their customers. Such as fuel saving offers, exclusive offers and discounts of their products. Also, now it’s able to earn Qantas Frequent Flyer points when you shopping in Woolworths, BIG W, Dick Smith and Tandy stores. How to accumulate reward points? You can earn one point per dollar when spent over $30 in one transaction when you shop in Woolworths, BIG W and one point per dollar when spent over $50 in one transaction when you shop in the Dick Smith and Tandy stores. Pros & Cons of using Everyday Rewards Card Advantages There are three major advantages that Woolworths offers its rewards card holders : save 4c per litre on fuel at Caltex petrol stations, receive exclusive offers and discounts from all participating retailers, and earn Qantas frequent flyer points for a free flight ticket. Disadvantages According to a recent report from a consumer group Choice, consumers will unconsciously spend more than what they can gain from these kind of loyalty programs. First of all, paybacks are very "poor". Woolworths Everyday Rewards program averagely offers less than $1 return for every $100 a shopper spends. And if anyone want to collect points for free flight tickets, he or she will need to spend at least $22,030 to gain...
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...Kudler Loyalty Program Adam Love BSA/310 5/30/2011 Deborah Marshall Kudler Loyalty Program Kudler Fine Foods is a well-known California grocer specializing in high quality and specialty foods. Since Kudler does not consider the price of its products to be a primary differentiator from other grocers their intent is to produce more profit through increasing their customer purchase cycle. To achieve their goal Kudler has partnered with a loyalty points program to provide customers with points which can be redeemed for high end gift items, airline first-class upgrades, or other specialty foods. This program will also enable the ability to track customer transactions and identify trends that will allow Kudler Fine Foods to customize its product base to better serve its customers. Before implementing this program, Kudler will need to identify legal, ethical, and security considerations as well as complete a financial analysis to justify the expenditures of the loyalty program. The Program According to Kudler Fine Food’s Sales & Marketing intranet website, customers prefer high quality and specialty foods are more important than high value prices. Kudler’s Sales and Marketing Department is developing a Frequent Shopper Program which will offer incentives to its members through point accumulation and offer Kudler valuable insight into the shopping tendencies of customers. Initially, this program should promote customer loyalty and give Kudler...
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...Abstract Brand loyalty is one of the most powerful marketing tools available, and it ensures that your products will be desired again. Many consumers develop loyalty to products of all types. Cars, electronics, clothing, and even groceries are often chosen based on prior experiences with particular brands. There are many ways to create and maintain brand loyalty. Three of those ways include rewards programs, customer satisfaction, and advertising. This report covers the definition, creation, and influence of social media on brand loyalty. How Businesses Develop Brand Loyalty All companies strive to create brand loyalty. It is one of the most powerful marketing tools available, and it ensures that your products will be desired again. Many consumers develop loyalty to products of all types. Cars, electronics, clothing, and even groceries are often chosen based on prior experiences with particular brands. How do companies develop this loyalty? In this report I will cover the definition, creation, and influence of social media on brand loyalty. The Hutchinson Unabridged Encyclopedia (2014) defines Brand Loyalty as “the attachment of the consumer to a particular brand, even though that brand may be more expensive than competing brands.” It is a psychological contract between the consumer and the brand, and is the target for all marketers. Consumers tend to develop devotion to specific brands. They buy what they have already bought in the past and opt for the brands that they...
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...performance with an average of 5% growth rate among the industries every year (Kumar, 2005). According to Britannica (2011) the word "cosmetics" is derived from the Greek word Kosmetikos, which means "skilled at decorating". It refers to any of several preparations (excluding soap) that are applied to the human body for beautifying, preserving, or altering the appearance or for cleansing, coloring, conditioning, or protecting the skin, hair, nails, lips, eyes, or teeth. Besides that, when people hear the word ‘cosmetic’, they tend to think of makeup and perfume design for women. Actually, cosmetics come in many forms, which are powder, soap, shampoo, body makeup, toothpaste and others (Kumar et al., 2006). According to Wikipedia, brand loyalty can be defined as the situation in which the consumer usually...
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...1. Evaluate the viability of loyalty programs in the cruising industry. Believe it or not people like the idea of feeling important and nothing seems more important than getting perks. So why belabor the point by putting up barriers to the customer and I like the Idea of loyalty rewards I hate the idea of carrying an extra card or coupon to be redeemed but I don’t want a coupon and I don’t want to have to redeem anything at some website. Whenever you ask the consumer to complete an additional action beyond the transaction in order to gain credit in a loyalty program, you're placing distance between the positive emotion elicited by the reward and the action of purchasing an item or experience. http://www.huffingtonpost.com/seth-priebatsch/customer-loyalty-programs_b_859462.html I like this Idea for Carnival because it could be very transactional and very lucrative...Let’s say a customer enjoyed a spa service, a few hours in the casino and a rock climbing session So why not use these customers experience as personal guides to what will attract these individual back to the Carnival cruise experience. So instead of offering a membership let them know when they Cruse with Carnival they are lifetime voyagers. If they enjoyed the spa offer them an upgrade them or comp them on their next Voyage treatment, Or matching funds at the casino even a free go on the Rock wall. Really if the idea here is to draw repeat customers why hide it. Just add the complimentary stuff to their...
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...Initiation Phase During the initiation phase of the Loyalty Points project, the development team must store one to one interviews with key stakeholders in a secure location. The key deliverables in this stage are the business requirements document (BRD) and the project charter. Hence, the project manager (PM) must store these notes and documents in a secure location. If the documents are in electronic format, having a full disk encryption technique like Secure Disk from Seagate Technologies or a file encryption program like PGP Desktop would be an acceptable choice to cipher all documents in the event an inside or outside attacker stole any hardware during the initiation phase project documentation of the loyalty points program. (Conklin et. al., 2012) Planning Phase In the planning phase of the loyalty points program, JAD session notes between stakeholders and the development team along with the work breakdown structure (WBS), Data Flow Diagrams (DFD), and system flow charts will be the key deliverables for this phase. Like the initiation phase, the PM must consider what medium to store JAD, WBS and DFD documents. If the PM stores these documents in electronic format, using a full disk or file encryption program in tandem with username/password combination for the laptop or desktop OS would be a good layered defense for user authentication to gain access to these project documents. (Conklin et. al., 2012) If the deliverables are in hard copy, having the copies...
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...Retailing Lessons from Loyalty Programs Around the Globe Terlisa Smith Professor Cynthia Mable Retail Management – MKT 310 January 29, 2012 Loyalty programs are invented to reward, and encourage, loyal buying behavior. This helps promote consumers to keep coming back to the store. When consumers present the cards they either get a discount on the current purchase, or points that can be used for future purchases. Discuss the CVS Extra Care loyalty program and whether the program is a source of shopper insights that can be leveraged in multiple ways to be successful. Since launching in 2001, CVS/pharmacy’s Extra Care Rewards Program has become the largest retail rewards program in the U.S., with more than 66 million active cardholders. It’s one of the most popular loyalty programs. The Extra Care program pays back customers 2 percent on purchases in the form of a coupon printed at the bottom of the store receipt. It also rewards customers with $1.00 to spend on front store merchandise for every two prescriptions purchased. The Extra Care program operates as an extra layer to our mass marketing efforts. It allows CVS to target customers with offers that print at the register and in direct mailings according to what they really buy and need regularly. Card sales provide CVS with another body of information that helps provide better services and products, customize our promotional plans, and generally be a better pharmacy retailer for customers. Recommend how...
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...5: Case 5: Promotion Decisions MAKING LOYALTY PAY NAME STUDENT ID Nancy Kumari S11013306 Saher Buksh S01007626 Aditya Raniga S11052046 Table of Contents CASE BACKGROUND 2 NECTAR 2 Nectar Promotions: 3 SAINSBURY 4 Therefore the aim of this case analysis is to find out: 4 CUSTOMER REGISTRATION 5 TWO METHODS OF REDEEMING POINTS 5 COMPETITION IN THE UK GROCERY RETAIL INDUSTRY 6 COMPARISION WITH COMPETITORS 7 SITUATIONAL ANALYSIS 8 CONSUMER PERCEPTION OF NECTAR PROGRAM 8 SPONSOR PERCEPTION OF NECTAR PROGRAM 9 SHOULD SAINSBURY CONTINUE WITH NECTAR? 10 SHOULD SAINSBURY HAVE ITS OWN LOYALTY PROGRAM? 12 SHOULD SAINSBURY DISCONTINUE WITH THE CURRENT LOYALTY PROGRAM & DIVERT FUNDS TO NON-LOYALTY PROGRAMS 14 CUSTOMER LOYALTY PROGRAM IN FIJI 16 RECOMMENDATION 17 CONCLUSION 20 BIBLIOGRAPHY 21 CASE BACKGROUND NECTAR • The Nectar loyalty program is the largest loyalty program in Britain. • It was launched by Loyalty Management UK (LMUK and chaired by Air Miles co-founder Keith Mills). • Nectar opened for business in 2002. • With reference to various individual retail loyalty programs, Keith Mills,Gierkink, and further members of the LMUK team undertook the decision to search for an assembly of retailers who had their individual reward programs however were not content with their performance and could enhance their performance by combining with a multi partner loyalty scheme. • The initial four sponsors of LMUK were Sainsbury...
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