Week 2 discussio Loyalty programs are more the norm than the exception.docx

Traditionally treated better than those who buy on

This preview shows page 1 - 2 out of 2 pages.

traditionally treated better than those who buy on the spot Many companies with similar products or services offer competitive rewards to woo consumers, which incentivizes customers to sign up for multiple loyalty programs in pursuit of the best offers, rather than a commitment to the company or their products. How effective are loyalty programs in customer retention? I do not agree that these programs have been successful in achieving the desired objective of customer retention, especially with regards to the amount of capital and resources companies invest in them. Over the years, more doubt has been cast on these programs, with both academic and trade organizations describing them with phrases such as: “failure in competitive strategy”, “Frequent- Flyer Offers fail to boost Loyalty”, “War in the Air: The Scramble for Points Hit Turbulence”. According to Kumara and Shah, (2004) “in the absence of any clear differentiation or specific value proposition, companies often squander valuable marketing resources attempting to build loyalty that may or may not result in profitable outcome”.
Image of page 1

Subscribe to view the full document.

Image of page 2
  • Spring '16
  • Marketing, Customer relationship management, 21st century, loyalty programs, Kumara V.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern