Question

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

An organization must look for opportunities to improve customer loyalty by developing then implementing programs focused on taking advantage of their respective customers to increase revenues. Customers satisfaction is the key for organizations when they are attempting to create loyal customers.

There are several aspects that an organization must consider when creating loyalty programs in order to see a return on their initial investment. One vital aspect of the entire project begins with performing the proper and effective research. Since, there are numerous program models, establishing the correct program for a business will take time. Organizations must avoid creating programs just because they able to do so. Organizations should utilize data from a variety of sources to analyze what consumers value most and would most likely respond to.

Another aspect that organizations must consider keeping customer loyalty programs simple and easy to manage. “Incentives are widely used for wellness”. The more complex the reward program the more difficult it will be for any business to retain customers. Most businesses utilize a point system such as the Hilton Hotel chain that provides incentives for using their services. The more points gathered by the customer the larger the discount for programs such as these rewards consumers at a certain percentage.

One final aspect that should be considered is marketing of the program for if it’s done incorrectly or not at all, then all the work exhausted in it’s creation would be pointless. “Monetary reward has been defined as an incentive that can make a person wealthier and materially successful if s/he meets the criteria for receiving the reward. Proper investment into marketing a provide greater visibility of your reward program to encourage consumers towards their brand.

Answer 1

Designing a reward program and the effective communication among the target audiences to appraise them regarding the reward programs using the suitable marketing channels are important for every business. In this regard, I agree with the first aspect that a business should must conduct research before designing and implementing a reward program. A research helps to create a reward program, that is able to cater the needs and expectations of the target audience. Then, the loyalty among the consumers develop. For example, a consumer of an airline company wants rewards in terms of facility and hassle free boarding, but a customer in a supermarket wants cash discount for the purchases. So, research is important while developing a reward program.
I agree up to some extent, with the aspect that reward programs should be simple and easy to manage as the focus should not be only the ease of implementation, but also the effectiveness of the reward program to develop a loyal customer base. Here, a customer base can be classified into the different tiers and each tier should have exclusive benefits under the reward programs. Though, it adds different layers to the reward program and needs employees to be assertive in implementation, but it has the capability to attract more customers and convert frugal customers into the loyal & frequent shoppers.
I agree with the aspect that marketing needs to be effective and suitable investment should be done as it builds awareness among the consumers and engagement level of the consumers’ increases. It later on coverts into the loyalty and then profitability. For this purpose, different PR activities should be conducted to let the consumers know about the reward & loyalty programs and then, they can come to buy the products and services. The market efforts highlight the value created by the company for the consumers and they perceive it to build a positive value proposition among themselves.