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My Experience

One important factor for learning something efficiently is personal experience. We learn a lot from personal experience. Something that is learned from experience is like a lesson for lifetime. I have come across two customer loyalty programs.

1)      Tim Hortons

2)      Costco

I got to know about Tim Hortons loyalty program from my classmates. They were talking about the card that Tim Hortons gives, and we can have a reward. Before that I came to know that the cups have something for the customers. Customers need to unroll the cup’s top and reward is written onto it. I tried that for couple of times but didn’t get any reward. However, it is the matter of luck and even sometimes I forgot to unroll the cup. But recently, I went to Tim Hortons and they give me card which costs me nothing. They instructed me that whenever I buy something I have to scan the card and I will get free service seventh time.

 When I came to Canada, my very first visit to the store was Costco. I went there with my relatives and it was a great experience as it has almost everything we need. Later I came to know that to make a purchase at Costco, the person must be a member of Costco. We can register online for the membership card. They also provide a master card called Capital One. This card is exclusively for the Costco members. One advantage of this master card is that we can use it in any store. The reward for us depends on our purchase.

These were two loyalty programs which I find beneficial. You can share your experience in the comments.

 by -  Priya Patel

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What efforts should be done to make customer loyal?

Customers purchase behaviour is different when there is a sale. The customer satisfaction is very important if it is a first purchase of the customer from any company. From my point of view, satisfaction for me will be good customer service at the counter, helping in giving directions towards the desired product, reasonable price and quality of the product. If I’m satisfied, then definitely I’ll go to the same company for my next purchase. I’ll be more interested to shop more if they have some customer loyalty program.

One source estimate that 92 percent of UK consumers participate in a loyalty program, with 78 percent being members of two or more program (Berman, 2006). Similarly, an ACNielsen study found that 95 percent of Canadians belonged to loyalty programs of department stores, mass retailers, general merchandisers, or warehouse clubs in 2005 (Berman, 2006). This indicates that customers are more likely to purchase from the company that gives additional benefits to them. Customers expect reward if they are constantly making purchase from the same company. Reward can be in the form of discount or some free product.

Innovation can be considered as the one of the best ways to apply to attract the customer. Innovation should be done that is beneficial to the customer. Innovativeness of products as an important means to fulfill customer needs and thus contribute to customer satisfaction (Stock, 2011). Company should invest more in innovations. Innovations is not only bringing us new product but also new ways to solve customer’s problems. After all, customers do not seek products; they seek satisfaction (Stock, 2011).

With the increasing technology the company should offer online programs such as company app. The app should be able to show the past purchases and the points earned by those purchases. I’ll like to know my point score before I make future purchase. The app should also show special offers for the customers. The customer should be able to get online information about the sale. I think everyone will like to have information about the points they scored on the fingertips. Membership card can also be good approach to increase customer loyalty. But I think app is the best approach because we must go to the store to know about the point score if we have cards. This can be solved by providing a toll-free customer service number which can provide information for customer.

 by - Priya Patel

References  

Berman, B.  (2006). Developing an Effective Customer Loyalty Program. California  Management Review, 123-148.

Stock, R. M.  (2011). How does product program innovativeness affect customer satisfaction.  Journal of the Academy of Marketing Science.

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5 steps to make your customer loyalty successful

1. An attractive name

Firstly, the name of the program should draw the customer’s curiosity and interest. These factors will stimulate the customer to be willing to know more and participate. Then, the name needs to be unique compares to others that already had. For example, Toms One for One. This name is obvious to understand, it draws the customer's curiosity to know how this program benefits the customers. And also it gives a hint on its name which grabs their attention.

Image: Ivey Business Review

2. Give a deeper meaning more than points

The stereotype of people’s minds is the company only cares about the money. When a new customer loyal program comes out, they may think that it is another trap to make them spend more money. Even though it says how this program benefits the customer. The meaning of the program is making money, but the company should provide some real goods and services instead of only points for a discount. Amazon prime costs $100 per year, not only for free delivery, but it also offers free dramas and movies streaming. 

3. Make points valuable 

Like I talk from the last step if a company only wants to offer points through customer loyalty programs, then it offers something valuable in return. For example, cash back. Customers can turn their points into cash and clearly know the benefits they get. Whenever the customer can clear how these points work, the more purchase, they would like to do for the company.

 4. Offer benefits from other companies 

This step could be confused, many of you might consider how a company can offer something valuable from other companies? Of course, they can! These companies have some partnership. For example,  If you’re a Fido PulseTM plan customer, you can earn free 6 months Spotify premium for free between October 25, 2017, to July 30, 2018. That can make the customer feel fresh and new, which urges them to keep purchasing.

5. Make customers relevant to the social issue

Non-Monetary benefits can increase brand awareness for the company. Customers can solve the social issue that makes them feel happy, even it is non- Monetary. The many companies do not turn your points into welfare, but they would like to donate this welfare to charity and kids who are suffering from poverty and starvation. 

Reference

Sophia Bernazzani. (2019, April 16).  The Beginner's Guide to Building a Customer Loyalty Program. Retrieved from: https://blog.hubspot.com/service/customer-loyalty-program

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How to Build Customer Loyalty

Retrieved from: 

https://www.youtube.com/watch?v=DjXckUhZyxw

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New Customer Loyalty  Programs of 2018

1. Uber’s Uber Rewards 

As the first ridesharing app, Uber innovate the new method to bring the Uber Reward. After the massive success of the first app, they combine 2 apps Uber, and Uber Eats together into Customer Loyalty Apps. Whether you are using an UberX, pool, or Eats, the user can earn points which accumulated to move up to a higher tier. There are Blue, Gold, Platinum, and Diamond tires, the more top tier can earn more points than the previous tier. These points can receive free rides and delivery. 

2. Chipotle’s Chipotle Rewards 

It’s hard for starving people to think about anything except food, So this easy understanding program is the best one for an eater. The previous plan of Chipotle is hard to maintain and benefit eaters because the membership only sustains for 3 months. It means if you are not into the mood of Burrito recently, you will lose all your points. But for now, you can earn 10 points for every $1 spent, then get free entree every 1250 points. Even you can get 50% more points if you order online or in the Chipotle app. Absolutely this new program encourages its customers to be connected. 

Reference 

Tim Peckover.(2018, December 27). Top 10 Customer Loyalty Programs of 2018.

Retrieve from: https://blog.smile.io/top-10-customer-loyalty-programs-of-2018

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Do more with your point!

Citibank

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Customer Loyalty Program and its benefits to customer and the company.

What is Customer Loyalty Program?

Customer Loyalty Program is an effort which stimulates the customer to make regular purchases and establish loyal purchasing.

It may include:

·         innovative access to new products.

·         supplementary discounts.

·         some free products.

The customers usually register their personal information and are provided with a unique ID number which is used as identity when they make purchase.

Customer Loyalty Programs works in two ways:            

1.      It provides reward to the customers for brand loyalty.

2.      It provides company with customer’s personal information.

The customer receives reward in the form of points for future purchase and once the customer gets comfortable with the program, he will be brand loyal. Different firms use different loyalty programs, some use apps and some use annual membership cards. If the customer is satisfied with the service and additional benefits it is more likely possible that the customer will return and purchase more often. There is also a chance that the customer will share his own experience to friends and family. This will influence other customers to purchase at the same firm. After the customers are given reward, they feel acknowledge and will return to the brand.