5. The price of Loyalty

5. The price of Loyalty - ThePriceofLoyalty Muhammad Bajwa...

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The Price of Loyalty Muhammad Bajwa Sana Rao Eesha Ajmal Jazza Humayunn Mehwish Maqsood
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Introduction: Article talks about: Growing trend of customer loyalty programs in US retail stores, Retailers want to increase their revenues therefore they want their customers to do repeat purchases. In order to offer rich rebates, retailers must form corporate alliances to gain an edge over other competitors such as Air Miles Canada .
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Introduction Continued. . The problems loyalty programs face are: 1. Decreasing Revenue, 2. Calculating the real worth of discounts and rebates, 3. Customer Loyalty. 4. Cost of marketing and starting such program, 5. Leaving a negative impression on customers once the programs are abandoned. 6. Failing to increase customer loyalty.
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Introduction Continued… Other problems: Free riders, slim margins, virtual world and tracking expenses.
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Slim margins vs. attractive rewards Modest per-customer sales (on average, less than $500 a year per household) and
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This note was uploaded on 02/08/2012 for the course ECONO 205 taught by Professor Bringingdecipline during the Spring '11 term at Instituto Balseiro.

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5. The price of Loyalty - ThePriceofLoyalty Muhammad Bajwa...

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