Study of Loyalty Programs
Introduction
The literature survey has provided a base for the study and given an overview of the areas where the research could be done. It has also provided me with the relevant facts.
Objective of the study:
Study of loyalty programs of Shoppers Stop and Pantaloons.
• Are these programs really effective in enhancing the customer experience.
• How much profitable does the loyalty programs prove to be, for a customer centric apparel retailer.
Most customers hold several loyalty cards of competing retailers. Past studies looking into the impact of card ownership on store loyalty showed mixed results. Loyalty cards are effective only when customers value the rewards associated with them. This research is being done to investigate to what extent the satisfaction with loyalty card rewards affects the customer experience with the retailer.
Literature Review
A customer is the one who consumes products (goods or services) and has the ability to choose between different products and suppliers. A customer is not necessarily someone who is currently purchasing the products from a marketer, they may purchase something tomorrow. They are indispensable for a business.
When a customer begins a relationship with a company he or she already has a specific set of expectations. These expectations are based on their perceptions. They are formed through personal past experience, and the experience of others with whom the customer interacts. Delivering below expectations leaves a customer unsatisfied, and if the services received meets their expectations they are satisfied. If it exceeds the expectations, customer is delighted.
(Picture Source: http://www.customerservicemanager.com/customer-expectations-vs-customer-needs.htm Article - Customer Expectations vs. Customer Needs by Ray Miller)
Customer loyalty is the degree to which customers will patronize to the company and that company alone because an emotional bond is developed or created with them.
The literature survey has provided a base for the study and given an overview of the areas where the research could be done. It has also provided me with the relevant facts.
Objective of the study:
Study of loyalty programs of Shoppers Stop and Pantaloons.
• Are these programs really effective in enhancing the customer experience.
• How much profitable does the loyalty programs prove to be, for a customer centric apparel retailer.
Most customers hold several loyalty cards of competing retailers. Past studies looking into the impact of card ownership on store loyalty showed mixed results. Loyalty cards are effective only when customers value the rewards associated with them. This research is being done to investigate to what extent the satisfaction with loyalty card rewards affects the customer experience with the retailer.
Literature Review
A customer is the one who consumes products (goods or services) and has the ability to choose between different products and suppliers. A customer is not necessarily someone who is currently purchasing the products from a marketer, they may purchase something tomorrow. They are indispensable for a business.
When a customer begins a relationship with a company he or she already has a specific set of expectations. These expectations are based on their perceptions. They are formed through personal past experience, and the experience of others with whom the customer interacts. Delivering below expectations leaves a customer unsatisfied, and if the services received meets their expectations they are satisfied. If it exceeds the expectations, customer is delighted.
(Picture Source: http://www.customerservicemanager.com/customer-expectations-vs-customer-needs.htm Article - Customer Expectations vs. Customer Needs by Ray Miller)
Customer loyalty is the degree to which customers will patronize to the company and that company alone because an emotional bond is developed or created with them.