Loyalty Card Proposal by Waitrose
In an industry where the players are generally ranked by their size,
Waitrose has established itself as a leader - not on the basis of mass
but of quality. Other supermarket giants have gone for volume;
Waitrose has targeted quality and choice. The products they offer are
of high quality and this is reflected in the prices which tend to be
higher than other supermarkets such as Tesco's. The variety on the
shelves reflects the demanding tastes of the Waitrose shopper who the
company promotes itself to, and includes a huge choice of wines, But
there are keenly priced essentials, too, for the budget-watching
household.
The Loyalty Card concept
The object of a loyalty program is to retain regular customers, to
increase commitment from occasional customers and to acquire new ones.
Serving you and your client is what the loyalty card program does
best. It tracks and rewards loyal customers. Many times those loyal
customers will come back because of the loyalty program. This is a way
of increasing the flow of traffic and spreading the word about you and
your service.
Other companies using the Loyalty card program.
I have chosen to look at Boots and WHSmiths, a supermarket and a non
supermarket, both these companies use the Loyalty program in their
stores.
Boots
Like many other stores, Boots offers a reward card, known as the
Advantage card, which is pink and credit card sized. This is how Boots
operate their system, You fill in a form in store, with your name,
address, date of birth, sex, whether you wear glasses, contacts, or
are pregnant etc. they use this information to analyse the sort of
person who shops in their stores, Waitrose could find this very useful
as they will be able to identify there market easier and cheaper.
You get one point for every 25p that you spend in the store, each
point being worth 1p.
WHSmiths
Points value
0.50
Tesco’s objective is to be the ‘champion for customers’, and they want to achieve this by being number one in customer satisfaction. They want to grow globally and by doing this they ‘create value for customers to earn their lifetime loyalty’. Tesco is
“Consumers today is on the go, multitasking and reaching them is much more difficult than it used to be. Habits are changing high tech gadgets are a must and music and TV is dialed up on demand dictated by the consumers. Consumers are choosing how they want to interact with the environment on their turns. A trend that has created many challenges for companies that are seeking new customers. No longer do American Express has just a captive audience watching three networks or going to the mailbox as their only incoming source of information and correspondents. Consumers are choosing how they want to interface and interact. Marketers need to be where consumers want them. Consumers have various cards to choose from and repeat offers in the mailbox all over ruined with options and as a result, finding a good time to talk with marketers require more creativity. Today, there is too many messages, and American Express trying to figure out if anything getting through” (Kotler & Keller, n.d.).
Customer loyalty comes from the personal relationship that is developed between the customer and the business. One method used to understand the customer relationship is called customer relationship intensity and Life-cycle segmentation (UOP, 2007). This process includes classifying all the customer relationships into one of five groups.
“The difficult part of maintaining the job, is obtaining 500 employee points to enjoy exciting benefits Adidas offers. If not, then you’ll be working minimum wage your entire time at Adidas. Accordingly, these employee points allow employees to obtain discounts and gain higher wages, only if, the customer states the employee’s name when items are purchased” Renzo
Ulta has a unique and revamped program that not only attracts consumers back, but offers birthday markdowns and other discounts. This reward system is called Ultamate Reward. Loyalty programs are made to build (an connection?) with customers, so they can feel comfortable coming back. The loyalty programs also allow consumers to earn points for every dollar they spend and earn double the points during consumers’ birthday month. These points can be redeemed with discount price for future transactions. Unlike Ulta, Sephora only allows consumers to redeem their points with product samples instead of discount prices. Ulta’s goal in this program is to “provide a level of transparency not found in many retail loyalty programs” (Jafari). Ulta sends
Marks & Spencer is one of the UK's foremost retailers of clothing, foods, homeware and financial services, boasting a weekly customer base of 10 million in over 300 UK stores. Marks & Spencer operate in 30 countries worldwide, and has a group turnover in excess of £8 billion. It has specific values, missions and visions. It’s main vision is ‘to be the standard against which all others are measured’, it’s main mission is ‘to make aspirational quality accessible to all’, and it’s main values are quality, service, innovation and trust. (www.marksandspencer.co.uk).
...rs since the reward is tangible. Since 80 percent of profit comes from a small percentage of customers, programs should be developed to retain them. Companies will use resources that aren’t available to the entire customer base to ensure they are retaining their most valuable customers and offering incentives to encourage others to move up.
They have successfully entered new markets including home electronics, clothing and personal finance. Relationship Marketing is a success for Tesco this is because due to the amount of profit with the loyalty Clubcard scheme.
As a result, the customer will most likely come back to the store they are already familiar with. To this extent, the retailers can also send out gift cards, reward cards to customers rewarding them for loyalty to the store. Some people think it is manipulating people into buying goods, but it is not true. The customer always has to choose whether to buy or not. No one is forcing them to buy anything.
Ninety percent of Canadians are enrolled in at least one loyalty program. Market research has shown that loyalty programs are growing to be very popular in today’s market. A loyalty program is a program offered by a company to customers, who make frequent purchases. Loyalty programs are of benefit to both the consumers and the business. The consumers benefit by receiving coupons, special access to sales and new products whereas the company benefits by gaining an abundance of knowledge about the consumers, through their purchasing habits. Loyalty programs have proven to be very successful for several companies such as Target, Starbucks, and Shoppers Drug Mart. The senior management in sales and marketing believe that initiating a loyalty program
Recruitment and selection are processes concerned with finding, evaluating and engaging new employees by screening out the right candidate for the job description. Recruitment is a set of techniques to attract qualified candidates to apply for job vacancies for Tesco. Selection is a process of choosing the most suitable candidate that applied for a job at Tesco.
The management at Tesco’s seem to place an emphasis on customer needs through the ‘Tesco Values’ philosophy, expressed as two values “no one tries harder for customers; treat people how we like to be treated”(Tescoplc, 2013)3. Tesco’s maintain that this represents listening to customers and using all the tools at their disposal, such as, Clubcard data, Frontline contact with employees, focus groups and research trackers to gather information (Loyalty square, 2013). Subsequently, this communication allows the company to act i...
A simple point system is the most common form of a loyalty program. It can be simple process of customers earning points which translate into some type of reward. Rewards can differ by offering discounts, freebies, special customer treatments, whatever the reward might be clients are coming back to to work toward a certain amount of points to redeem their rewards. A very popular and successful form of reward is when a client recommends the product to someone else, which for example can give a 10% discount for the word of
Loyalty customers gain the more cost advantage and benefit, this resist competitors very hard to match. Promoted cost bind to loyal customers to sustainable growing.