Monday 19 December 2011

Competition through the use of loyalty schemes

BENEFITS FOR THE CUSTOMER
  • discount
  • promotional offers
  • larger awareness of products/ services
  • basis for information exchange of what customer wants.
  • customers often feel more positively about the rewarding, thanking/ treating aspects of the schemes rather than the discounts. some enjoy the 'game' of collecting points through offers to get the reward they want.
  • benefit from buying power of scheme organiser to get 3rd party offers which they otherwise could not afford.
BENEFITS FOR THE COMPANY

  • better knowledge of actual and potential customer value, behaviour and needs, providing a quantified, measurable basis  for determining and implementing efficient policies.
  • customer knowledge for use of other parts of marketing and the company
  • creating focus 
  • the ability to get quick learning from launches, other trial activities and marketing activity in general
  • improving pricing management and its balance with promotional activity
  • allowing brand-strength to be extended and deepened through use of more target communication.
EXAMPLES ARE BOOTS, SUPERDRUG, SAINSBURYS, TESCOS


http://www.alternativeminds.co.uk/DG1.pdf  for more reading


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