Question

Do you agree or disagree with the selected aspects for an organization? Explain

The three key aspects that a company must consider when developing a successful loyalty and reward program complete satisfaction of the customer needs, give the customer ultimate pleasure in buying the services or products with their loyalty program; in addition, if the consumer spends more genuinely they get more back on their loyalty or reward program, which they will want to focus on the same loyalty program that offers them savings. Customers frown upon any changes to their loyalty program that is not totally benefiting the consumer. “Loyalty program managers are frequently asked to find ways to tighten down budgets within their programs; it is also the case that senior executives do not always have data demonstrating the importance of their program as it contributes to return on investment or ROI. Consequently, programs are often cut or changed in ways that may negatively influence consumers”. Many customers just love their reward program with their vendors; furthermore, it makes the customer spend more with the vendor as well. For instance, I truly love Steven Madden shoes, they have a rewards program that is amazingly great; moreover, you get points for just signing up for the rewards program. All companies are gearing for customers to have a death do us apart relationship with their services or products based on their loyalty program.

     When developing any time of advertising strategy to lure consumers to buy their product or services; consequently, you will have a deal with cost or decrease in the value of the company in order to maintain the loyalty or reward program. For example, “Restaurant chain Chart House program, the Aloha Club, offered free around the world trips to any member who ate in all 65 Chart House restaurants. Unfortunately, the company underestimated the zeal of its 300,000 members. Forty-one members qualified, costing the company a considerable sum of money” (Winer, 2016 pg. 429). Many consumers think they are getting great deals; in addition, at low cost too. Customers and the companies tend to try to get over each other in this marketing structure. “Reward programs are incentives designed to create loyalty among customers with the idea that they can provide the best rewards to the “best” customers. Loyal customers are, by definition, less price-sensitive customers. However, managers frequently question the value of their reward programs and wonder what, if any, incrementality is gained from offering rewards for customer patronage. Consequently, managers are frequently challenged to think of ways to manage their loyalty programs that reward high patronage without creating “deal” seeking customers and without further discounting price”. Consumers only want the deals; consequently, the company wants the long-term shopper, without a return of investments

Answer 1

I totally agree with this aspect of the organisation. Creation of the Loyalty program is essential to get the customer and to retain the customer for a longer time. This type of approach enables organisations to create better relationship with the customer which directly affects its overall sales as well as profit.

Loyalty of the customer is very essential for any brand to maintain its public image. If a brand acquired negative brand image in the market, this negative brand image can be widely affected by the loyal customers. Loyal customer directly influence other customer by showing the trust and loyalty towards the brand.

This approach helps the company to understand market situation as well as to assess needs of the customer which affects its overall relationship with the organisation and improves the overall service provision which affects the brand identity in a positive way as well as improved operation structure of the specific organisation.