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Ramakrishna Ass

The document provides information about loyalty programs, including their origin and evolution over time. It discusses the early beginnings of customer loyalty programs in the 1700s and 1800s when retailers used coins and stamps to encourage repeat purchases. Modern loyalty programs emerged in the 1900s with "box tops" and individual brand programs. Today, loyalty programs are common across many industries and come in various types, including point-based, spend-based, tiered, paid, value-based, partnered, and hybrid models. The document also provides Amazon Prime as an example of a well-known paid loyalty program.

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Piyush Chandrikapure
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63 views4 pages

Ramakrishna Ass

The document provides information about loyalty programs, including their origin and evolution over time. It discusses the early beginnings of customer loyalty programs in the 1700s and 1800s when retailers used coins and stamps to encourage repeat purchases. Modern loyalty programs emerged in the 1900s with "box tops" and individual brand programs. Today, loyalty programs are common across many industries and come in various types, including point-based, spend-based, tiered, paid, value-based, partnered, and hybrid models. The document also provides Amazon Prime as an example of a well-known paid loyalty program.

Uploaded by

Piyush Chandrikapure
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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DIGITAL MARKETING 

PROJECT 
BRAND ALLOCATED = PARLE MONACO
The final deliverable of the project is a report. The page limit for the report is 15, including
the title page and exhibits. The report should  include the following pieces:
•        Background & Status Quo: Identify allocated brand's primary marketing
objective or key challenge given its background. Then summarize the firm’s
current digital marketing efforts based on knowledge learned from this course
•        Marketing Research: determine whether the brand's digital marketing
practice matches with its overall marketing objective. Identify one to two of
the firm’s digital marketing tactics which you recommend revising or
strengthening. For example, you might conclude that a firm should invest
more in SEO, or to engage with customers more actively on social media.
Please collect a certain amount of empirical data to back up your arguments.
•        Recommendations: given the identified problems and the results from
your analyses, propose your digital marketing strategy and tactics and
elaborate how to implement the proposed tactics using available tools,
techniques, and platforms from Internet, social media and mobile. Finally,
please define metrics that the firm should constantly monitor for evaluating
the performance of your tactics in line with the firm’s objectives. 

RETAIL MARKETING 
Submit a report on "Reliance Trends" or "Reliance SMART" covering its strategies
such as format, pricing, merchandising, location, store design, promotion and other
competitive strategies. 

Customer Relationship Management


Submit a report on "Loyalty programs" covering its origin, evolution, types. Also
study loyalty programs offered by any one of the industries mentioned below.
a) Airlines OR b) Retailing 
Apart from its usages, Also threw light on challenges and issues in managing loyalty
programs.   

What loyalty program means?

A loyalty program is a marketing strategy designed to encourage customers to continue


to shop at or use the services of a business associated with the program.
Today, such programs cover most types of commerce, each having varying features and rewards
schemes, including in banking, entertainment, hospitality, retailing and travel.

ORIGIN

The very early beginnings (1700s)


Some believe that the early roots of customer loyalty programs started with “premium
marketing” in the late 18th century. At this time, American retailers began to give customers
copper tokens with purchases that could be later redeemed for products on future purchases.

Transition to other forms of loyalty (1800s)


Retailers quickly learned that using coins as a customer retention tool was a costly way of
promoting loyalty. In the late 19th century (around 1891), the transition to less expensive
tools began when stamps replaced coins in “loyalty programs”.

Modern loyalty programs (1900s)


Loyalty programs would continue to be led by stamp collection programs into the early
1900’s. Beyond this point, individual brands and retailers began to introduce their own ways
of engaging customers, with "box tops" as one of the original brand specific programs.

Box tops were coupons that were printed directly onto product packages that could be later
redeemed for premiums or rewards. Betty Crocker introduced their box top program in 1929,
laying the framework for loyalty programs as we know them today.

Loyalty Programs Today


With the rise of ecommerce and digital payment infrastructure, it is now possible for anyone
to start a reward/loyalty program for their store or site. A loyalty program is no longer
reserved for the power players in the retail space — in fact, many of the most successful
programs are online and on mobile.

One of the best examples of a loyalty program optimized for mobile is the Starbucks Rewards
program. The mobile app acts as a rewards program and a mobile payment method,
simultaneously.

TYPES OF LOYALTY PROGRAMS


1. Point Programs
The point programs are the most common programs around the commerce world, as they the
simplest ones. They are based on one simple principle: Spend more to get more.
Every time a customer makes a purchase in-store or on your website, they get a certain
amount of points depending on the size of their purchase. These points are translated into
some type of reward. Whether it is a discount or a special customer treatment, customers
seems to work toward collecting a certain amount of points to redeem their reward.
2. Spend-Based Loyalty Programs
In spend programs, customer get loyalty credits for the amount they spend at a business.
This program is very easy to understand, create and maintain. It is also proven to be an
effective way to increase transaction amounts and reduce churn rate.

3. Tiered Programs
One way to find the right balance between attainable and desirable rewards is to implement a
tiered loyalty reward system, which rewards initial loyalty and encourages more
purchases.

4. Paid Programs – VIP member club


Customers pay a monthly or annual fee to join your VIP member club with access to
special services, discounts or unique opportunities. Your paid program should
include benefits that are exclusive to members or either wise it will lose its value.

5. Value – based Programs


If you structure a loyalty program that is aligned to your customers’ values, they are more
likely to become brand ambassadors.

6. Partnered Program
Strategic partnership for customer loyalty can be super effective regarding customer
retention, as you offer them more opportunities. At the same time, it can help the growth of
your business by building new business relationships (partnerships).

8. Hybrid Loyalty Programs


A hybrid loyalty program is a combination of more than one type of loyalty systems. You
may merge 2 different systems such as the tier and the game program, where customers reach
new levels of loyalty every time they complete a new level in your game. The participation in
the game should of course entail a purchase.
4. Amazon Prime

Amazon’s Prime membership program is a well known paid loyalty program. For a flat
annual fee, Prime members get access to unlimited free two-day shipping on millions of
items, as well as other perks, like Amazon’s streaming service and Prime Day sales.

Amazon deals with heavy competition from other retailers like Walmart. You can find most
of the products on Amazon elsewhere, too. Prime is how it differentiates itself and convinces
customers to buy products through Amazon exclusively. And it works: Prime members spend
an average of four times more than other Amazon customers.

For retailers in similar industries where products and price points are very similar across
competitors, your customer loyalty program can become a differentiator and competitive
advantage.

Think of wholesale clubs like Costco. Give customers a reason to shop exclusively with you
by offering value in addition to your products and service. By charging a membership fee,
you can give yourself some wiggle room to offer truly valuable perks. An upfront investment
also encourages consumers to validate their purchase by spending more with you.

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