Memo of Transmittal

Purpose

The purpose of this memo is to provide the Management Team at Tech Garden with insight into the new customer loyalty program. This memo will explain why a customer loyalty program is desirable at Tech Garden. This memo will also provide successful customer loyalty program implementation techniques for Tech Garden. This memo will outline key company and customer benefits with the development and application of a customer loyalty program.

Why Development a Customer Loyalty Program

Loyalty programs are developed to create returning customers, thus reducing competition. A customer loyalty card provides identification, memory, and reward to customers. With the use of a points system, Tech Garden is encouraging customers to purchase more in order to gain points to redeem and receive a reward. By providing a reward or incentive to the customer, you would be creating a reason for the customer to make future purchases at Tech Garden. With the reward, customers would not consider other retailers as they would not gain the additional benefit with their purchase that they would at Tech Garden.

Successful Implementation Techniques

Referring to the attached article, Jason Bertellotti outlines five key elements to implementing a successful customer loyalty program. First, commitment to the customer loyalty program is key. In order to be successful Tech Garden must fully commit to inserting the customer loyalty program into the company’s culture and daily work routine. With the implementation of a “points” loyalty program, data collection is essential. Tech Garden must obtain a reliable and consistent system to record and monitor customer purchases and points in order to allow for customer’s to properly redeem points. Next, integra...

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...mprove loyalty cards will be needed in order to continue to see results from the loyalty card.

Ha, S., & Winters, E. (2012). Consumer evaluation of customer loyalty programs: The role of customization in customer loyalty program involvement. Journal of Global Scholars of Marketing Science, 22(4), 370-385. doi:10.1080/21639159.

2012.720752

Ha and Winters talk about the customization of customer loyalty programs. The article examines customer response to the perceived value, cash and emotion, of the reward they receive. Customization allows companies to specifically target customer preferences based on the rewards they can redeem points for. Providing the customer with choices will allow the customer to feel in control resulting in loyalty. The article provides techniques to implement and improve loyalty program customization in order to improve customer loyalty.