Mkis
Discuss the relationship(s) between loyalty card and marketing information system (database marketing)?
Loyalty card refers to a plastic card which is given to a customer by a business and which is used to record information about what the customer buys and to reward them for buying goods or services from the business. A loyalty card is an incentive plan that allows a retail business to gather data about its customers. Customers are offered product discounts, coupons, points toward merchandise or some other reward in exchange for their voluntary participation in the program. A secondary goal of a loyalty card is to build repeat business by offering participating customers something that is not available to non-participating customers.
Typically a loyalty card has a barcode or magnetic stripe that is scanned at the point of sale (POS). The card identifies the customer and sends information about what the customer bought to a database. The information in the database is used to help the retailer understand and influence his customers' buying habits. According to research carried out by Boston University's College of Communication, 80% of American shoppers are listed in a loyalty database; a majority of survey respondents said receiving the card was worth giving up some measure of privacy.
The larger stores offer customers loyalty cards. When the customer shops at the store they are awarded a set number of points depending on how much they spend. The loyalty card stores their points. One point is commonly worth 1p with a point awarded for each pound spent. This point can be converted into vouchers that provide discounts on products or services. Each customer’s loyalty card has a unique card number linked to a database which stores information about them (provided by the customer when they signed up) and their purchases.
Besides, swiping a loyalty card is an example of data capture. Every time the customer visits the shop the card is swiped, reading the unique
Loyalty card refers to a plastic card which is given to a customer by a business and which is used to record information about what the customer buys and to reward them for buying goods or services from the business. A loyalty card is an incentive plan that allows a retail business to gather data about its customers. Customers are offered product discounts, coupons, points toward merchandise or some other reward in exchange for their voluntary participation in the program. A secondary goal of a loyalty card is to build repeat business by offering participating customers something that is not available to non-participating customers.
Typically a loyalty card has a barcode or magnetic stripe that is scanned at the point of sale (POS). The card identifies the customer and sends information about what the customer bought to a database. The information in the database is used to help the retailer understand and influence his customers' buying habits. According to research carried out by Boston University's College of Communication, 80% of American shoppers are listed in a loyalty database; a majority of survey respondents said receiving the card was worth giving up some measure of privacy.
The larger stores offer customers loyalty cards. When the customer shops at the store they are awarded a set number of points depending on how much they spend. The loyalty card stores their points. One point is commonly worth 1p with a point awarded for each pound spent. This point can be converted into vouchers that provide discounts on products or services. Each customer’s loyalty card has a unique card number linked to a database which stores information about them (provided by the customer when they signed up) and their purchases.
Besides, swiping a loyalty card is an example of data capture. Every time the customer visits the shop the card is swiped, reading the unique