Some best and worst Loyalty Programs

Source: (Best and worst, 2014)

In this post we are going to discuss about two best and worst loyalty programs of some big organisations. Here are the two best loyalty program:

Starbucks: Reward Program

  Source: (Squarespace.com, n.d.)

This is one of the best programme in the market and it’s due to one big reason which is "free stuff". The basic idea behind the program is to “reward” a consumer for frequent visits. It included a free dink on the birthday and two Hours of free Wi-Fi per day, which went on to free refills and many more things.

Best buy: Reward zone

Source: (simicart.com, 2016)

Nearly two years ago, best buy was charging an annual fee for its free loyalty program which was known as ”reward zone”. This was one of the best program for big purchases like buying electronic products. The reward system got 1 point for each dollar they spent.  When the points earned reached a certain limit, they client got free shipping of the goods, extended return policy and many more perks. 

Now it is time for some of the loyalty programs which didn't live up to its expectations or were suspected and were put under scrutiny. Here are two such loyalty programs

Loyalty card of supermarkets

Source: (licdn.com, n.d.)

This may come up as a surprise to most of the readers but it is true. A research was conducted by Consumers against Supermarket Privacy Invasion and Numbering (CASPIAN). In the research it was found that, supermarkets tend to increase the price of goods on loyalty cards by 28% to 71%.

Subway: The Sub club

Source: (asset-cache.net, n.d.)

Subway had one of the best reward programme named “The sub club”. In this reward programme a customer got a free sub once his card was filled with the stamps. Soon, with the time it was found out that it was very easy to counterfeit the stamps. Subway was also exposed as it couldn’t keep track record of its programme and soon this programme was withdrawn from the market.

I hope you all enjoyed reading the post. Share and comment down for more questions and to give feedbacks

Source: (Notte, 2010)

References

(n.d.). Retrieved from Squarespace.com: http://static1.squarespace.com/static/52ccee75e4b00bc0dba03f46/t/5444c58ee4b067cc717b4230/1413793167092/Starbucks+MSR

(n.d.). Retrieved from licdn.com: https://media.licdn.com/mpr/mpr/AAEAAQAAAAAAAALcAAAAJDRmYzY5YTdiLTdjNjUtNDY1ZS05YmJjLTRlZDMyOTE0OGIzNw.png

(n.d.). Retrieved from asset-cache.net: http://cache2.asset-cache.net/gc/53028102-information-relating-to-the-sub-club-customer-gettyimages.jpg?v=1&c=IWSAsset&k=2&d=OCUJ5gVf7YdJQI2Xhkc2QEXciYJcibM8EV%2F5T63ojYUYKZ5H8AaowBYzNUw0waK8wDyVas2d%2FbB4nHxeoaZaVQ%3D%3D

(2016, February). Retrieved from simicart.com: https://www.simicart.com/blog/wp-content/uploads/2016/02/earnrewards_en.jpg

Best and worst. (2014, 03 29). Retrieved from http://www.prweb.com/: http://ww1.prweb.com/prfiles/2014/03/29/11717358/tbm-best-worst-mattress-types-2014.png

Notte, J. (2010, June 25). Retrieved from Thestreet.com: https://www.thestreet.com/story/10788796/1/5-best-5-worst-customer-loyalty-programs.html

Disadvantages of Customer Loyalty Programs

Source: (macxdvd.com, n.d.)

We have discussed about the advantages of the customers but like everything it also has its disadvantages. Here is the list of the disadvantages of the loyalty programmes:

·   One thing with these programmes is that these programmes are being offered by everyone. The company you love will be using those and the competitors of the company would also be using these programmes. This has become like a necessity. A company needs to have a loyalty programme to have a loyal customer base.

Source: (redbubble.net, n.d.)

·   It is a necessity these days but it can’t be patented by any company. Any company can copy the programme of some other company by making some small modifications to it.

Source: (Moneygossips.com, n.d.)

· If you start up a new company and are providing the highest possible services but don’t have a loyalty programme whereas your competitor does. The products made by your company are of the highest quality and are on par or better than the product of your competitor. The customer will prefer the product of your rivals just because of the loyalty programme.

Source: (decidingfactor.us, 2013)

·  Other con of a loyalty program is that it is usually outsourced by the company. It means it is managed by some third- party, who keeps the personal information of the clients of the company. Those third parties can track a client’s activities anytime, like where the client shopped recently and many more.

               Source: (mysecuritysign.com, 2013)

·  The third parties who runs the loyalty programme sometimes share the private information of the client for surveys or other campaigns. In the world of internet, cybercrime is also very common. The hackers can take advantage of your personal information and the consequences can go very bad.

I hope you all enjoyed reading the post. Share and comment down for more questions and to give feedbacks

Source: (Disadvanatages of customer loyalty, 2012)

References

(n.d.). Retrieved from macxdvd.com: http://www.macxdvd.com/mac-dvd-video-converter-how-to/article-image/disadvantages.jpg

(n.d.). Retrieved from redbubble.net: http://ih1.redbubble.net/image.23218630.8712/sticker,375x360.u2.png

(n.d.). Retrieved from Moneygossips.com: http://i0.wp.com/www.moneygossips.com/wp-content/uploads/2015/01/copying-from-the-web.jpg

(2013). Retrieved from decidingfactor.us: http://decidingfactor.us/wp-content/uploads/2013/10/TDF_Flat-Logo_FinalArt-01.png

(2013, February). Retrieved from mysecuritysign.com: http://www.mysecuritysign.com/blog/wp-content/uploads/2013/02/You-Are-Under-Surveillance-Sign-K-7664.gif

Disadvanatages of customer loyalty. (2012, February). Retrieved from gtaggar.com: http://gtaggar.blogspot.ca/2012/02/disadvantages-of-customer-loyalty.html

Advantages of Customer Loyalty Programs

Source: (Business-opportunities.biz, 2015)

Customer Loyalty Programs are preferred by many big companies and it is due to the fact that it has a lot of advantages. Here is a list of advantages of the loyalty programs.

· These programs allow an organisation to put their focus on the best customers they have so that the customer satisfaction can be improved. Sometimes loyal customers are willing to pay more which will increase the cash flow to our business.

· These programs also help in bringing new customers to your company, maybe from the rival company or another segment of market. More new customers will come into the company if the programme offers a lot of value to them.

Source: (maxcdn.com, n.d.)

·  These programs also help in building up the relation between the company and the customer which may last for a life time. This also takes the consideration of your customer being taken away by your competitor out of the window.

·  Loyal customers also are like a marketing strategy without a lot of cost incurred. They recommend the company to other customers on every instance possible. A customer’s referral has more power to entice his family and friends than the advertisements or other marketing campaigns.

Source: (Shoptizen.co, 2015)

· Loyalty programmes also help in identification of the best customers of the company by placing spotlight on them. As they show the best clients, they are also very helpful in providing about the bad customers.

· These programmes also help in winning back the lost customers who were in the bracket of “good customers” but left the company due to some reasons. A company knows these customers and trust these people and vice-versa.

Source: (autovusolutioncs.com, n.d.)

I hope you all enjoyed reading the post. Share and comment down for more questions and to give feedbacks

Source: (thewisemarketer.com, 2010)

References

(n.d.). Retrieved from maxcdn.com: http://ngdata.wpengine.netdna-cdn.com/wp-content/uploads/customer-retention-benefits.jpg

(n.d.). Retrieved from autovusolutioncs.com: https://gb2.autovusolutions.com/WorkingFolder/27530/BlogPix/17/NotForgotton.jpg

(2010, August). Retrieved from thewisemarketer.com: http://www.thewisemarketer.com/features/read.asp?id=120

(2015, April). Retrieved from Business-opportunities.biz: http://www.business-opportunities.biz/wp-content/uploads/2015/04/advantages-to-owning-a-business-562x463.jpg

(2015, March). Retrieved from Shoptizen.co: http://www.shoptizen.co/wp-content/uploads/2015/03/Teaser-1.jpg

Types of Customer Loyalty Programs

 Source: (Types of loyalty Programs, n.d.)

In this post we are going to discuss about some of the loyalty programs which the companies use:

Offer Discounts: Offering discounts to customers when they achieve determined spending focuses for instance, 10% off their next buy on the off chance that they spend through $100.

Source: (Ragonasisters.com, n.d.)

Limited time offers can encourage brief buys, yet companies make sure to publicise that scheme.

Loyalty card: On the off chance that companies offer a high-volume, low-esteem things, give clients a card to be stamped with each purchase. When they achieve the target number, they meet all requirements for a free one.

Loyalty card of Walmart
Source: (Walmart, n.d.)

Trial technique: Companies invite the customers to trial creating items and administrations for free. Company asks its trusted customers to give their views on certain products. Companies tend to focus on the criticisms and improve the product on those basis before launching it.

Previews: Companies tend to hold a preview evening before launching the product. They invite their regular customers to that evening and offer them to be the first person to buy the product. Companies try to make that event special to give the customers feel of special recognition.    

Some other programmes include:

• Giving away free things with numerous buys. Purchase one, get one free is an attempted and tried technique for encouraging short term sales. This strategy is usually for short periods because if overused people start questioning the quality of the goods.

    Source: (123rf.com, n.d.)

• Sometimes companies offers another product at low cost with a related product. For example: The companies so sell machinery they will also offer the customer to buy safety equipment with it at low cost.

            Source: (personalthrows.com, n.d.)

I hope you all enjoyed reading the post. Share and comment down for more questions and to give feedbacks

Source: (Ten ways to reward loyal customers, n.d.)

References

(n.d.). Retrieved from Ragonasisters.com: http://www.ragonasisters.ca/userfiles/images/Ragona%20Sisters%20Team%20discounts.jpg

(n.d.). Retrieved from 123rf.com: http://previews.123rf.com/images/marinini/marinini1406/marinini140600061/29468498-buy-one-get-one-free-text-in-white-and-red-flat-design-label-business-shopping-concept-Stock-Photo.jpg

(n.d.). Retrieved from personalthrows.com: http://www.personalthrows.com/assets/images/screen-shot-2011-04-29-at-121634-am.png

Ten ways to reward loyal customers. (n.d.). Retrieved from marketingdonut.co.uk: http://www.marketingdonut.co.uk/marketing/customer-care/customer-loyalty/ten-ways-to-reward-loyal-customers

Types of loyalty Programs. (n.d.). Retrieved from https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhxS-Q-ufWVHxnB_p6nQ8h5bHtBlpEt7mOwmbcCHm-LEemnNp61_MfwZ6yow5WNr_Iu0YVexKJHFXfYU7uBZyvKF6Uv7OHn5zJFP0wN3hTFKMmOY5Z_YwSHEflKon-v7mSk1kYFawRHugGp/s1600/types+of+loyalty+programs.png

Walmart. (n.d.). Retrieved from https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhM9HCJBXWrZ3NkOym83ts_71DOquJzRbmJTjpyi8wpLgtCmXiH6ghwP2Vu7A8m9TBOvant_U2aydjB8eddLs2RiNchWE_mlGnwMyf2h6S4fr_JzoLKcECTwC4nngbBTrda4f8lSrjWZJ11/s1600/walmart.jpg

What are customer Loyalty Programs?

                   Source: (newbrandanalytics.com, 2013)

A loyalty program is a program usually offered by the companies to give rewards to their regular customers. A loyalty program can be of many type varying from a special sale to coupon program. Some companies issue their cards to the customers where a person has to give his personal information so that he can be uniquely identified.

Break Down of Loyalty Programs

Loyalty programs have two primary functions:

· They give the customer a reward for showing loyalty to the brand

· They also provide the company with useful customer related information

Source: (slideshare.net, n.d.)

These schemes are very good way to retain the customers. It is very high for a business to bring in new customers. A business spends on advertisement, different marketing campaigns to get the new customers. That is a lengthy and costly process. So, to avoid the wastage of time and money business tries to retain its current crop of customers. The business earn a lot of profit by opting for the customer loyalty and this program is being used by more and more organisations, companies.

Here is video showing an example of a loyalty programme by Starbucks.




Customer loyalty programs also help a company to get competitive advantage over its competitor. In today’s market, there is abundance of choice for the customer. It is very easy for a customer to find substitute for a product if they don’t like. These programs helps in building up of loyalty and offers much more than just keeping them satisfied.

Customer loyalty programs not only recognises your best customers but also rewards them. This is a big pro of using these programs. These schemes are used to delight your customers and in return the company gets huge chunks of profits.

I hope you all enjoyed reading the post. Share and comment down for more questions and to give feedbacks

Source: (Loyalty Programs, n.d.)

References

(n.d.). Retrieved from slideshare.net: http://image.slidesharecdn.com/customerloyaltyprogrammeril-131216114929-phpapp01/95/customer-loyalty-programme-reliance-retail-limited-4-638.jpg?cb=1387194692

(2013, August). Retrieved from newbrandanalytics.com: https://www.newbrandanalytics.com/blog/wp-content/uploads/2013/08/iStock_000017005101Medium.jpg

Loyalty Programs. (n.d.). Retrieved from Investopedia.com: http://www.investopedia.com/terms/l/loyalty-program.asp