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How to Build Strong Loyalty Programs Free Essay, Term Paper and Book Report

An effective loyalty program encompasses an array of rewards for frequent shoppers that encourage repeat purchasing and customer retention. Research shows that customers generally prefer to get something extra, a reward, for their purchases, rather than just lower prices (Levy, 2008). With this in mind, retailers need to establish creative and useful rewards for customers who have joined the loyalty program. Specifically, the loyalty program needs to encompass several aspects that benefit both the consumer and the retailer. For the consumer, the program must have rewards that that customers will respond to and will directly result in a repeat purchase for the retailer. The program needs to involve either a personalized credit card, loyalty member card, or other progressive identity technology such as fingerprint recognition to indentify loyal customers. This gives the customer a sense of community and prestige amongst the other customers who shop at the store. The card must also give plenty of rewards, usually in the way of accumulated points, that result in the c......

Word Count: 801
Page Count: 3.2  (250 words a page / double spaced)

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