Loyalty Program Case Study

1099 Words3 Pages

Ninety percent of Canadians are enrolled in at least one loyalty program. Market research has shown that loyalty programs are growing to be very popular in today’s market. A loyalty program is a program offered by a company to customers, who make frequent purchases. Loyalty programs are of benefit to both the consumers and the business. The consumers benefit by receiving coupons, special access to sales and new products whereas the company benefits by gaining an abundance of knowledge about the consumers, through their purchasing habits. Loyalty programs have proven to be very successful for several companies such as Target, Starbucks, and Shoppers Drug Mart. The senior management in sales and marketing believe that initiating a loyalty program …show more content…

To get to the number one position hard work and dedication is needed. The success this company has achieved is outstanding and to keep up with the market more effort is now needed. Due to the tough economic situation, Tech Garden is facing competition from infrequent competitors such as Staples, Walmart and the Brick. Customers are more likely to be less brand loyal during these economic crises therefore its time to pursue new customers and existing ones with the new Tech points’ card. This is an additional asset to the new advertising campaign “Taking technology to market” that will allow our customers to show loyalty to us. Furthermore, with this new asset more clients will be drawn towards us and as a result allowing them to become our customers as well. This will not only be beneficial to them but also to our company. Overall, the Tech Points’ card will permit the customers to obtain points for every purchase they make at Tech Garden and then at the end will be allowed to redeem an award. Hence, allowing them to become loyal customers to Tech Garden and together, allowing the company to …show more content…

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

More about Loyalty Program Case Study

Open Document