Consumer Loyalty Cards
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- Date Submitted: 02/20/2011 04:02 PM
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Running head: CONSUMER LOYALTY CARDS 2
Abstract
Relationship Marketing refers to a customer’s purchasing history. According to Wikipedia, relationship marketing is defined as market development from campaigns that give emphasis to customer retention, customer satisfaction, and transaction of sales. The overall goal is to retain customers, attract new customers, and increase profits. The process known as the customer relationship management builds and maintains relationships by managing detailed information about a customer (Wikipedia, 2011). How can satisfied customers be loyal customers? How can we ensure a customer’s return? Most companies hone into deeper interactive approaches by offering loyalty cards. The effectiveness of loyalty cards and their usefulness to consumers and retailers continue to be a topic of discussion in today’s business world.
CONSUMER LOYALTY CARDS 3
Consumer Loyalty Cards
Marketer’s use communication tools to build closer customer relationships (Kotler, 2010). How can a company deliver greater value to its customers? There is an assortment of factors that affect consumer behavior. Factors such as culture, social, and psychological influence the consumer’s buying decisions (Kotler, 2010, p 193). Marketer’s use these behaviors to promote their products. Most companies focus on target marketing to create value for customers. Smaller market segments reach the customer more efficiently and effectively with products or services that meet their needs. Although, a market can also be segmented, it does not mean that the customer will purchase the same or similar product in the future from the same retailer.
Retailers must reach out to gain a long term strategy to gain and retain loyalty from its customers. Loyalty cards are used to capture personal information and build a customer buying profile. The cards are used to keep tabs on what you purchased, how often you shop, and what your...
Abstract
Relationship Marketing refers to a customer’s purchasing history. According to Wikipedia, relationship marketing is defined as market development from campaigns that give emphasis to customer retention, customer satisfaction, and transaction of sales. The overall goal is to retain customers, attract new customers, and increase profits. The process known as the customer relationship management builds and maintains relationships by managing detailed information about a customer (Wikipedia, 2011). How can satisfied customers be loyal customers? How can we ensure a customer’s return? Most companies hone into deeper interactive approaches by offering loyalty cards. The effectiveness of loyalty cards and their usefulness to consumers and retailers continue to be a topic of discussion in today’s business world.
CONSUMER LOYALTY CARDS 3
Consumer Loyalty Cards
Marketer’s use communication tools to build closer customer relationships (Kotler, 2010). How can a company deliver greater value to its customers? There is an assortment of factors that affect consumer behavior. Factors such as culture, social, and psychological influence the consumer’s buying decisions (Kotler, 2010, p 193). Marketer’s use these behaviors to promote their products. Most companies focus on target marketing to create value for customers. Smaller market segments reach the customer more efficiently and effectively with products or services that meet their needs. Although, a market can also be segmented, it does not mean that the customer will purchase the same or similar product in the future from the same retailer.
Retailers must reach out to gain a long term strategy to gain and retain loyalty from its customers. Loyalty cards are used to capture personal information and build a customer buying profile. The cards are used to keep tabs on what you purchased, how often you shop, and what your...