Assignment task: Respond to this with sources and references
There are many variations of loyalty programs for consumers. There are points programs, mission-driven programs, refer-a-friend programs, subscription programs, and community programs (Khachina, 2023). Loyalty programs allow businesses to create stronger customer relations via rewards and customer data collection (Customer Relationships and Loyalty, n.d.). In fact, in 2021, a report by a referral marketing program, Mention Me found that by using a loyalty rewards program, there is a 40% of customers are likely to have a repeat purchase from customers (Khachina, 2023). A loyalty scheme that I find beneficial is with the Marathon gas station by my house. It started one day when I was getting gas, I noticed an advertising about an app with loyalty rewards every time | purchase. Once I downloaded the app, I discovered for every gallon of gas I purchased | would get so many points. Additionally, the app advertised certain items that, if purchased, would earn you more points. After accumulating so many points ! was eligible for a minimum of $.10 off per gallon and going up with point accumulation. I already have to get gas, so why not sign up for the loyalty program to get save some money? This is a form of behavioral loyalty, because the gas station is convenient to my house, and I habitually shop there (Customer Relationships and Loyalty, n.d.).
Two ways in which the loyalty program benefits me are that I get discounted gas after collecting points, and using the data from my purchases, I receive coupons geared toward my everyday purchases. Personalized rewards promote repeat business and attract engagement (Khachina, 2023).
Loyalty programs have proven to be solid methods for sustaining market share and growing the business (Black, 2018). Three ways the loyalty programs benefit businesses are by first, collecting data from customers that can be used to improve business operations. When a customer signs up for a loyalty program, they input their demographic information that can then be tracked and analyzed Customer Relationships and Loyalty, n.d.). Second, every time | purchase an item at the gas station and enter my loyalty number, the company knows exactly what I am purchasing (besides gas). They are able to know the brands I prefer. The third benefit would be longevity effect. As long as I continue to get coupons and rewards for my purchases, my lifetime value will lengthen and I will continue to use them over a competitor ( Customer Relationships and Loyalty, n.d.).