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Customer Loyalty Schemes in Retail Sector

Loyalty schemes are introduced by retailers to gain customer patronage and encourage repeat purchases. The two most prevalent types are membership cards and reward points programs. These schemes generate robust customer data that allows retailers to better understand customer needs, influence behavior, and defend against competing loyalty programs. Measuring the results of loyalty schemes helps retailers assess the frequency of customer visits, average spend, and lifetime customer value to optimize promotions and site selection.

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VISHESH MAHESHWARI
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114 views7 pages

Customer Loyalty Schemes in Retail Sector

Loyalty schemes are introduced by retailers to gain customer patronage and encourage repeat purchases. The two most prevalent types are membership cards and reward points programs. These schemes generate robust customer data that allows retailers to better understand customer needs, influence behavior, and defend against competing loyalty programs. Measuring the results of loyalty schemes helps retailers assess the frequency of customer visits, average spend, and lifetime customer value to optimize promotions and site selection.

Uploaded by

VISHESH MAHESHWARI
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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JOSE B.

ALVAREZ & ALDO SESIA


z
Customer Loyalty
Schemes in
Retail Sector Submitted By: Group 6
Ayush Khatri
Shubham Srivastava
Palash Pansey
Shashi Kant Singh
z
Loyalty Schemes Development

To reward Generate
loyal robust
customer customer
base data

And act as
Influence a defence
Consumer for a
Behaviour combating
scheme
z
Purpose of Loyalty Scheme

They are simply


Loyalty schemes are
rewarding the
introduced by retailers
customers for their
to gain patronage from
repeat purchases and
consumers
encourage their loyalty

It serves as a learning
Two most prevalent
experiment to better
loyalty schemes were
understand the needs
membership cards and
and motivations of the
reward points
customers

The reward should be


desirable to persuade
the customers to buy
z
Level of Engagement

First/Base level Engagement

Occurs when the retailer offers the reward to the


consumer

Second way Engagement –

When retailer communicates and offers differentiation


of rewards to the consumer

Third Way Engagement

When the customer and retailer have a two way


communication and the customer provides feedback
z
Advantage of Loyalty Schemes

Network Planning – Conducting Market


Site Selection – Retailers Robust store network can Research- Loyalty
can find suitable locations be created and precisely programmes can be seen
with greater preference determine the sale areas as an additional way to
in the store conduct market research

Assortment Planning – Setting Pricing – The


Promotion Optimization data can be used to
Retailers can understand
– Effectiveness of the analyse how price
what products they buy ,
promotions can be sensitive are the customer
where do they buy and
evaluated segments and adjust
when do they buy
pricing accordingly

Shopping lists and Monetization of data –


history – Customization of Selling customer data to
shopping lists for other businesses
customers visits
z
Measuring Results

Frequency of
Customer Visits
Average
Customer
Spend
Customer Life
Time Value
z

Any question?

THANK YOU

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