15/09/2014 Other Services
Customer Loyalty can be said to be both an attitudinal and behavioural disposition to favour a particular brand over others due to many factors – being satisfied with the product itself or with the service, its convenience or performance or it can be that they are just comfortable with the brand. The advantage with Loyalty Programs is that it helps to motivate consumers to spend sizable amounts with a positive feeling and in turn attract them to stay loyal to a particular brand in an environment where there is stiff competition.
Some of the popular types of business loyalty programs are:
A) Rebate Programs that are tactical in nature as it emphasizes on the bargains offered to the consumer depending on his purchase.
B) Appreciation Programs which involves a scheme which rewards one’s customers with additional advantages like better services or additional value on their purchases. The strategy is to keep the prevailing customers loyal to the brand.
C) Partnership or Collation Programs is when the company associates itself with associates that are not in the competition to offer diverse rewards thus helping to increase the appeal and spending habits for their customers. The direct overheads are rather low as it is tailor-made for collective participation.
D) Affinity Program revolves around building a lifetime association with the customer, based on various factors, the most significant being the aggregation of consumers from similar backgrounds like doctors, engineers, etc. who donates the points earned by them to charities.
The basic objective of all loyalty programs is to collect deployable data of customers and utilizing this to optimize activities so as to achieve maximum advantage to help customers to remain loyal to a particular brand.
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