Designing a Customer loyalty program:
Customers' expectations are increasing. Today’s customers want service, products that meet their needs, value for money and added benefits. In response to this, retailers are stepping up. Their promotional activity to the extent that sales and special offers have become everyday affairs, rather than end of season stock clearances. As a result margins are being eroded to dangerously low levels. Some retailers like Pantaloon have introduced card-based collector schemes that give electronic points. According to the customer's spend, which are subsequently exchanged for gifts or Discounts. The more strategically minded retailers are introducing systems that monitor Customer behavior in order to respond better to their increasing demands. Both Approaches are commonly known as customer loyalty programs, however, the latter approach is the only one that is sustainable and really merits being considered as such. The basic electronic points schemes are just another way of delivering a promotion and rely upon giving a higher value incentive to differentiate from the competitors. The objective should be to maintain the customer's loyalty, not by bribery, but by offering a better service, thus preserving margins and profitability.
New Loyalty program for Pantaloon Retail India ltd.
As we know that creating and maintaining single loyalty programs is an expensive proposition as it requires a heavy and fully functional IT backbone, marketing spends, dedicated manpower etc. If not managed properly, loyalty programs may be unsuccessful. The solution is to have such a loyalty program that can be used across multiple stores which in turn will give access to a wide consumer database allowing cross partner transactions.
According to this new loyalty program pantaloon retail can increase customer retention and purchase frequency. This multi – use loyalty card program provide an opportunity to pantaloon retail to interact with millions...
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