The customer rewards cards that clutter wallets and clog key chains of many a shopper may soon be no more, as retailers move from physical to digital (read: mobile apps) forms of loyalty program member identification. It's a smart decision. Unfortunately, it's one of the only smart decisions retailers are making when it comes to customer loyalty schemes.
Loyalty program data can be enormously advantageous in other ways, such as helping a retailer perform market research, set pricing strategies, and decide whether and where to open new stores. "Retailers can get a better understanding about what brands matter to consumers," says Alvarez. "So if consumers are switching brands, or buying based on promotions, you can…drive the customer to your own label."
[This article was provided with permission from Harvard Business School Working Knowledge.]
Customer Loyalty programs are essential part of the CRM activities. The idea behind the programs is to reward the customer; retain the customer. This cycle of\" Reward the customer; Retain the customer\" goes on and on if the program is good. Maggie Starvish has lucidly explained how the \"Retail\" sector uses customer data and behaviour to desing reward or loayalty programs and influences the shopping / sales behaviour. Innovation is the key to success in these loyalty programs. Let me share example of Arihant\'s innovative customer loyalty program for the project Arihant Adita at Jodhpur - a township project with 2 & 3 BHK flats of Stilt plus10 storey magnificent towers. The customers were rewarded with an experience of CARNIVAL with 32 variety of fun filled, sporting and thrilling activities which ensured a long lasting impact on the customers mind. Such innovations which are engaging really matters a lot in brand building and sales.
on Sep 1, 2014