Loyalty Card Proposal by Waitrose
In an industry where the players are generally ranked by their size,
Waitrose has established itself as a leader - not on the basis of mass
but of quality. Other supermarket giants have gone for volume;
Waitrose has targeted quality and choice. The products they offer are
of high quality and this is reflected in the prices which tend to be
higher than other supermarkets such as Tesco's. The variety on the
shelves reflects the demanding tastes of the Waitrose shopper who the
company promotes itself to, and includes a huge choice of wines, But
there are keenly priced essentials, too, for the budget-watching
household.
The Loyalty Card concept
The object of a loyalty program is to retain regular customers, to
increase commitment from occasional customers and to acquire new ones.
Serving you and your client is what the loyalty card program does
best. It tracks and rewards loyal customers. Many times those loyal
customers will come back because of the loyalty program. This is a way
of increasing the flow of traffic and spreading the word about you and
your service.
Other companies using the Loyalty card program.
I have chosen to look at Boots and WHSmiths, a supermarket and a non
supermarket, both these companies use the Loyalty program in their
stores.
Boots
Like many other stores, Boots offers a reward card, known as the
Advantage card, which is pink and credit card sized. This is how Boots
operate their system, You fill in a form in store, with your name,
address, date of birth, sex, whether you wear glasses, contacts, or
are pregnant etc. they use this information to analyse the sort of
person who shops in their stores, Waitrose could find this very useful
as they will be able to identify there market easier and cheaper.
You get one point for every 25p that you spend in the store, each
point being worth 1p.
WHSmiths
Points value
0.50
When their customer opens a charge card, the customer receives a percentage off their purchase for that day and now that the customer has a card, they will be mailed promotional discounts weekly and emailed discounts daily. Retail stores also offer reward cards that help their customers save money but the customer does not need a credit verification. “At Kohl’s, for every one hundred dollars one spends using one’s reward card, he or she will earn $5 of Kohl’s cash, and must be 14 years old to enroll for a reward card” (Kohl's Coupons & Kohl's Codes). “At Macy’s one can earn 10% of reward for the amount he or she spends, but only Macy’s credit card holders can enroll for a reward card” (Macys).
UK supermarket industry has high level of competition with several big retailers. Waitrose is owned by UK retailer the John Lewis Partnership. Sainsbury is the third supermarket chain in UK. In this report, there is an analysis of retail strategies about Waitrose and Sainsbury. In the supermarket industry, the retail strategies of Waitrose and Sainsbury are compared based on the highly competitive industrial environment. Before the main body, there is an overview of macro environment and competition conditions of supermarket industry of UK. PESTLE analysis is used to identify the macro industrial environment and Porter’s five forces are used to discuss the industry rivalry. After that, it is a market segment of Waitrose and
Walgreens set up a pay-for-performance system to inspire employees being more accountable and aggressive. Based on this system, the employees will be evaluated and bonuses are built in the light of three primary critical elements, involving financial results, team member engagement, and customer service. In addition, the community engagement and events are included in marking criterion, which is accounted as percentage. Due to this system, the stores have participated more than 16,000 community events, which was over a million volunteer hours (Walgreens, 2016). It is win-win program that incents the employees to sincere serve their customers and ultimately boosts the company’s profits and positive
After that first week he realized that employees were not receiving a valuable discount in return on the products they were selling on a daily basis. Employee discounts are motivators in an employee’s performance. Employee discounts allow employees to purchase the products they are trying to sell and have a better understanding by being able to connect with the customers because they have one themselves. Best Buy as a company took on the challenge to create a culture that surrounds learning and the development for its employees. The company created an incentive program called “Path to Excellence” which helps aid the employees career paths but also receiving extrinsic rewards for their outstanding performance. To break it down further, employees earn virtual badges as they progress through different learning levels. Since the program has launched Best Buy has seen improvement in three key metrics:” The close rate improved 129 basis points; revenue per transaction increased $3.31; and services and connections sales increased 37 basis points” (Freifeld, Lorri 2013), overall making it a successful employee engagement program. Another key motivator to success in performance by employees is money. Pay sometimes is a huge motivator when it comes to the
In recent years there has been major growth in the wider business world surrounding the overall influence that the retailing industry holds and because of which, retailing and the issues that surround it have become a vital influence in today’s global economy. (Fisher & Raman, 2001)
Discount coupons are why this store has becomes a successor of what it was in the past and
Unlike its competitor ‘Rite aid’ who offers a very convenient loyalty system that can be used at Macy’s, at&at, Balance Rewards is exclusive to only Walgreens and Duane Reade. I know what the Walgreens company was going for, but I feel extending their service to give their customers more chances to gain points and sale opportunities.
Tesco’s are all about the profit as they make money from the customers basic on what they sell throughout the year. The purpose is to make profit on the goods that they sell to the customers. The main purpose is to make profit and gain market shares.
Tesco’s aims are to maximize their profits as much as they can and increase their market share all whilst gaining their customers
...rs since the reward is tangible. Since 80 percent of profit comes from a small percentage of customers, programs should be developed to retain them. Companies will use resources that aren’t available to the entire customer base to ensure they are retaining their most valuable customers and offering incentives to encourage others to move up.
Tesco’s objective is to be the ‘champion for customers’, and they want to achieve this by being number one in customer satisfaction. They want to grow globally and by doing this they ‘create value for customers to earn their lifetime loyalty’. Tesco is
Marks & Spencer is one of the UK's foremost retailers of clothing, foods, homeware and financial services, boasting a weekly customer base of 10 million in over 300 UK stores. Marks & Spencer operate in 30 countries worldwide, and has a group turnover in excess of £8 billion. It has specific values, missions and visions. It’s main vision is ‘to be the standard against which all others are measured’, it’s main mission is ‘to make aspirational quality accessible to all’, and it’s main values are quality, service, innovation and trust. (www.marksandspencer.co.uk).
Bibliography: Lawson, A. (2013). Analysis: Is Asda’s five-year strategy the right one?. [Online] Retail-week.com. Available at: http://www.retail-week.com/sectors/food/analysis-is-asdas-five-year-strategy-the-right-one/5054989.article [Accessed 23 Jan.
Recruitment and selection are processes concerned with finding, evaluating and engaging new employees by screening out the right candidate for the job description. Recruitment is a set of techniques to attract qualified candidates to apply for job vacancies for Tesco. Selection is a process of choosing the most suitable candidate that applied for a job at Tesco.
It will also increase the lifetime value of our customers, which takes into account their projected lifetime as a customer. The main goal of the loyalty program will be to increase sales and improve our marketing techniques. The program will encourage customers to make frequent purchases for which they will gain rewards and redeem for a specified dollar value. We will lose some profit when the customers redeem their points however they will only be able to redeem the points in increments of $10 and will be required to pay the tax difference. All in all we will not lose enough to affect our profit on a large scale because our sales will be increased as a result of our loyal customer base. In conclusion we would request that the loyalty program be implemented into Tech Garden locations everywhere to maximize