Assignment 2

Assignment 2 - 1. When it comes to customer loyalty...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1. When it comes to customer loyalty programs, there can be various design characteristics that go into it – some that are necessary and some that are optional. However, in order for a customer loyalty program to be effective, it must have a stable dynamic and realistic reward structure. This is what the loyalty program consists of and how it goes about demonstrating it. It is the fundamental layout of your compensation for shopping at a particular retailer. The reward structure is a major characteristic and necessity because without it, there really is no legitimate loyalty program. Within the reward structure, other design characteristics include: sponsorships, incentives, and deals. Sponsorships can be the existence of any partnership or external network that a retailer may be working with to make the loyalty program possible. Many retailers use this to aid them in affording a loyalty program and this simultaneously helps out the sponsor because they are being marketed, advertised, and put into service. Incentives and deals go hand-in-hand as a design characteristic of loyalty programs; they are what motivate consumers to purchase and to become a part of a loyalty program in the first place. Of course, why else would you join one of these things? You are not adhering if there is nothing in it for you. Although you do need all these characteristics in order for a loyalty program to be
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/19/2012 for the course MAR 4231 taught by Professor Timbirrittella during the Spring '12 term at FIU.

Page1 / 2

Assignment 2 - 1. When it comes to customer loyalty...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online