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Retail Loyalty Programs
Loyalty Programs in retail : An overview
What is a loyalty program ?
Loyalty programs are the schemes designed with an intention to retain existing customers and attract new customers by rewarding a customer with both hard and soft benefits for his loyalty and patronage.
Classification
Loyalty programs (either on the shop delivery' or web based') can be classified either based on types of rewards and recognition tools used or the mechanism by which customers earn their rewards.
Classification based on the mechanism by which customers earn their rewards :
1. Earning points towards a reward of free or discounted product.
Such kind of approach is normally used in applications where there is high transaction frequency and moderate price points .However, such a kind of loyalty program increases functional loyalty rather then emotional loyalty ,for example a frequent flier program.
2. Allowing customers to redeem third party currencies such as airline......
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Title: Loyalty Programs In Indian Retail
Approximate Word Count: 2626
Approximate Pages: 11 (250 words per double-spaced page)
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