Monday, January 23, 2012

Have you got the card?

      Now a day almost everyone is enrolled in some kind of customer loyalty program from Canadian tires "funny money" to Air miles reward programs. We are part of the over 86% of Canadian consumers who are enrolled in a loyalty marketing program (Guffey, Rhodes & Rogin, 2008, p.272). Companies can get a more accurate response on customer service from the customers who have the loyalty card, where as it would be harder for companies who do not have a customer loyalty program. For example, when you go to certain stores like Shoppers Drugmart, you can gain "points" towards another purchase or they can be redeemed for a gift card. This helps Shoppers to bring in more cliental and thus more profit. Research reveals that customers participate in loyalty programs there are "high levels of customer satisfaction, high engagement to the sponsoring brands and overall responsiveness to the loyalty value proposition" (Guffey, Rhodes & Rogin, 2008, p.272). Although the customers may have a loyalty card, it does not mean that the rewards will be redeemed right away or even for a while. An example would be Air Miles, some people like to save their rewards for a rainy day or when the timing is appropriate, therefore saving them would not benefit the company but the customer. So I will leave this blog with a question, how many of you bloggers have any type of loyalty cards and what do you think people who don’t would benefit from?