Analysis of the Loyalty Card as Promotion Tool and How It Improves Satisfaction and Loyalty Between the Supermarkets and Customers Such as in Tesco Plc Case Study.

Topics: Marketing, Loyalty program, Customer loyalty programs Pages: 9 (2365 words) Published: February 16, 2013
| | |6055BUSIS BMI Project | |BMI-Literature review | | | | | | | | | | | |Tutor Name- | | | | | | | | | |Fred | | |

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Dissertation main aim

Analysis of the loyalty card as promotion tool and how it improves satisfaction and loyalty between the supermarkets and customers such as in Tesco plc case study

Objectives:

1. Analyse and define the idea behind satisfaction and loyalty. 2. Identify the correlation between the Tesco club card and improved customer satisfaction and loyalty. 3. Examine and assess the role played by Tesco club card and loyalty programs towards promoting inside customers. 4. Analyse the circumstances under which customer loyalty improve Tesco profit.

Introduction:

Loyalty program can be described as a scheme set with the aim of rewarding customers who frequently purchase from a particular store or supermarket. This is achieved through cards which are awarded to the customers where points accumulate with every purchase made by them from their stores. The accumulated points can thereafter be redeemed and in turn be used to buy goods from the same stores even without cash. In addition, customers with loyalty cards have the privilege of discounts on products so long as they have the card. The challenging and tough part of any business is convincing customers to buy one’s products. After achieving that, it even becomes more challenging to retain them through ensuring their satisfaction. The use of loyalty cards have proven viable when it comes to maintaining customers thus maximizing profits (Kimmel, Weygandt, & Kieso, 2012). Therefore, main aim of this Literature review is to have an in depth review and analysis of the impact of Tesco club card on customer satisfaction and loyalty behavior toward Tesco.

Customer Loyalty

In simple terms, loyalty can be defined as the act of being faithful. However it is worth noting that the concept of customer loyalty in many scenarios has been misunderstood in the recent past. To cement on this, many...
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