loyalty cards: method of attracting new customers
DESCRIPTION
This project is about loyalty cards.TRANSCRIPT
About company
The Global Advertising is the leader in delivering unique customer acquisition and retention
programs that have successfully brought its clients new customers, increased revenue,
increased brand awareness and enhanced customer loyalty by harnessing the power of face-
to-face referral marketing.
Loaded with a portfolio of thousands of satisfied clients, The Global Advertising has
partnered with some of the nation's most recognized household brands, including major
league sports teams and national restaurant chains to bring consumers great value.
With 4 unique and powerful marketing channels i.e. events, Retail, B2B Canvassing and
Loyalty Marketing and hundreds of independently owned and operated corporate distributors
with independent sales teams actively representing one or more Global Advertising clients -
The Global Advertising's massive marketing reach provides its clients total market immersion
on the local or national level. This leads to results unmatched by any other form of
advertising. The Global Advertising serves a broad range of industries, including professional
and independent sports teams, area attractions, home improvement service providers,
restaurants, and travel offerings-virtually any industry looking to generate new customers,
enhance brand loyalty or fill unused seats.
Clients
Some of the nation's most prominent businesses utilize The Global Advertising to reach their
customers. From major league sports and international travel chains to luxury spas and
popular restaurants, businesses looking to succeed choose The Global Advertising for their
marketing needs. These testimonials represent just a few of the thousands of clients building
their brands and their sales in The Global Advertising.
Dining
We are serving dining establishments hearty helping of increased.
Sugar N Spice
U.S. Pizza.
The Hotel pride.
Pizza Hut.
Car care / bike Care
Maintaining a promotional Presence keep sales running smoothly and fastest long term
relationship for these and other car care of bike brands
P.N Motors (Maruti Suzuki)
Super Motors (Maruti Suzuki Hero Honda )
Ajay Bajaj (Bajaj)
Auto Point (Tata)
Top Town Motors (Maruti Mass Stations)
Bagwan (Suzuki)
Desai Auto (Hero Honda)
Cinema
The Global Advertising is a box office for cinema brand with real star power.
D.R World
Green Land
Wide Angle
Fitness
Run Lean, Strong Promotions the Global Advertising gives you the muscle to built up
business in your community.
Maruti Fitness.
Services
Event Channel - Our newest and fastest growing marketing channel is Corporate Events. The
Corporate Events Channel allows clients to reach their target demographic through employee
events where we feature and promote our client's businesses in front of thousands of
employees.
Retail Channel- There's no better place to market a business than in the midst of hundreds of
active shoppers who are already in the "buying" mindset. Participation in our Retail
Marketing Channel exposes our client's businesses to tens of thousands of prospective buyers
at some of the largest national retailers via our live, on-site sales representatives. In addition,
our clients will benefit from our fac-to-face marketing expertise when we provide thousands
of qualified leads to our clients through our partnerships with some of the nation's top
retailers and the largest brands in the country.
B2B Canvassing- Our Business to Business Channel is a highly effective marketing channel
that allows our clients to precisely target local consumers by harnessing the power of face-to-
face referral marketing. Our Business to Business Marketing Channel provides the ideal
means for our clients to reach the people that make up their local community and are their
customer base.
Loyalty Marketing- As an extension to our face-to-face marketing channels, our Loyalty Marketing Program gives our clients the ability to re-market our client's brands to those customers who previously purchased their offerings through our Corporate Events, Retail or Business to Business Marketing Channel.
Introduction to Topic
Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal
buying behavior – behavior which is potentially beneficial to the firm.
In marketing generally and in retailing more specifically, a loyalty card, rewards card, points
card, advantage card, or club card is a plastic or paper card, visually similar to a credit card,
debit card, or digital card that identifies the card holder as a member in a loyalty
program. Loyalty cards are a system of the loyalty business model. In the United Kingdom it
is typically called a loyalty card, in Canada a rewards card or a points card, and in the United
States either a discount card, a club card or a rewards card. Cards typically have a
barcode or magstripe that can be easily scanned, some are chip cards or proximity
cards. Small keyring cards (also known as keytags) which serve as key fobs are often used for
convenience in carrying and ease of access.
By presenting the card, the purchaser is typically entitled to either a discount on the current
purchase, or an allotment of points that can be used for future purchases. Hence, the card is
the visible means of implementing a type of what economists call a two-part tariff.
Application forms usually entail agreements by the store concerning customer privacy,
typically non-disclosure (by the store) of non-aggregate data about customers. The store uses
aggregate data internally (and sometimes externally) as part of its marketing research. These
cards can be used to determine, for example, a given customer's favorite brand of beer, or
whether he or she is a vegetarian. Where a customer has provided sufficient identifying
information, the loyalty card may also be used to access such information to expedite
verification during receipt of cheques or dispensing of medical prescription preparations, or
for other membership privileges (e.g., access to a club lounge in airports, using a frequent
flyer card).
Loyalty programs can be viewed as a form of centralized virtual currency, one with
unidirectional cash flow, since reward points can be exchanged into a good or service but not
back into cash.
Literature Review
DECISIONS OF CUSTOMERS LOYALTY PROGRAMS FORMATION by Rasa
Gudonaviciene, Ausra Rutelione concluded that in order that company could be prosper,
successful and competitive in the market it has to keep the customer loyal. Recently business
companies have started to focus on the present customers more, seeking to keep them by
using various loyalty programs. Well prepared and developed loyalty stimulation tools can be
effective method to strengthen relations with customers, increase sales, identify the most
popular and best saleable products, evaluate how to choose the best price decisions, form the
production assortment and solve other urgent questions for business. The article deals with
theoretical decisions related with factors influencing customers’ loyalty, types and formation
principles of loyalty programs, the impact of loyalty programs on customers’ behaviour.
Basing on this background, the case study of customers’ loyalty programs proposed by
Lithuanian and United Kingdom large retail nets MAXIMA LT (Lithuania) and TESCO
(United Kingdom) are presented in the article.
Loyalty programs and their impact on repeat-purchase loyalty patterns by Byron
Sharp and Anne Sharp concluded that Loyalty programs are currently increasing in
popularity around the world. This paper discusses the potential of loyalty programs to
alter the normal market patterns of repeat-purchase behaviour which characterise
competitive repeat-purchase markets. In line with this thinking, a large scale loyalty
program is evaluated in terms of its ability to change normal repeat-purchase patterns
by generating 'excess loyalty' for brands in the program. Panel data were used to
develop Dirichlet estimates of expected repeat-purchase loyalty statistics by brand.
These estimates were compared with the observed market repeat-purchase behaviour.
Overall a trend towards a weak level of excess loyalty was observed, although the
expected deviation was not consistently observed for all the loyalty program brands.
Only two of the six loyalty program participant brands showed substantial excess loyalty
deviations. However, these deviations in repeat-purchase loyalty were observed for non-
members of the loyalty program as well as members and appear likely to be at least
partially the result of other loyalty efforts particular to these brands.
Consumer Loyalty Programs by Hanover Research in the report Hanover Research
presents information on consumer loyalty programs. First, we discuss secondary literature
and academic research on the psychological and physical structures of these programs.
Second, we profile successful programs from a range of industries.
An Approach to Increase Customer Retention and Loyalty in B2C World by Roopa
Singh, Imran Akhtar Khan concluded that customers are always been important for the
business. With the high rate of competition in every market, it is critical to retain the
customer/ loyal customers. The purpose of the paper is to highlight how short term actions
with bit compromise with the profit will turn into long term customer loyalty and hence long
term benefit. In this paper we will be focusing on understanding the customer retention and
customer loyalty, their importance to the business. After analyzing the importance of
benefits, we will understand the approach of how to increase customer retention and customer
loyalty towards your business. Though there will be many strategies for each of them, we will
also understand what considerations should be done while deciding the best strategy for the
business as different business has different scope and also their limitations too.
Using Loyalty Programs to Attract Consumers to Value-Added Businesses by Kathleen
M. Kelley Assistant Professor of Consumer Horticulture concluded that Increasing
market share is a retailer’s primary goal for their business. The more customers shop at their
store, the more likely sales and profi ts will increase. Consumers, however, have many
choices as to whom they purchase from, how they purchase (e.g., Internet, catalog, retail
store), and where they purchase goods. Differentiating themselves from the competition is
necessary for retailers to become and remain foremost in their customers’ minds.
Research Methodology
Research Objective:
To know that new customers are attracted from the loyalty programs.
To know that various loyalty schemes make the existing customers more loyal to
particular brand.
Loyalty schemes attract the customers to purchase more products.
Research Design:
There are mainly three research designs:
1. Exploratory research design
2. Descriptive research design
3. Causal research design
In this research Descriptive research design will be used
Type of Data:
For this study both Primary data and secondary will be used.
Sources of Data:
Data will be collected through questionnaire and Company Mentor
Sampling Plan:
Sample Size: 100
Sampling Method: Non-Probability (Convenience)
Sampling Unit: Consumer
Data Analysis and Interpretation
Frequencies:
Age
Age
Frequency Percent Valid Percent Cumulative Percent
Valid less than 18 1 1.0 1.0 1.0
18 – 25 66 66.0 66.0 67.0
25 – 30 21 21.0 21.0 88.0
Above 30 12 12.0 12.0 100.0
Total 100 100.0 100.0
From 100 respondents 66 belonged to age group of 18 to 25 years while 21 belonged to age group of 25-30 while 12 belonged to age group of 30 or above years.
Gender
Gender
Frequency Percent Valid Percent
Cumulative
Percent
Valid Male 52 52.0 52.0 52.0
Female 48 48.0 48.0 100.0
Total 100 100.0 100.0
From the total of 100 respondents 52 were males and rest 48 were females.
Occupation
Occupation
Frequency Percent Valid Percent
Cumulative
Percent
Valid Student 64 64.0 64.0 64.0
Service 26 26.0 26.0 90.0
Businessman 3 3.0 3.0 93.0
Other 7 7.0 7.0 100.0
Total 100 100.0 100.0
From the total of 100 respondents 64 were Student, 26 were service, 3 were businessman and 7 were other.
Aware about the Loyalty Cards
Aware
Frequency Percent Valid Percent
Cumulative
Percent
Valid yes 100 100.0 100.0 100.0
From the total of 100 respondent 100 were aware about the loyalty cards.
Member have loyalty cards or not
Member
Frequency Percent Valid Percent
Cumulative
Percent
Valid Yes 56 56.0 56.0 56.0
No 44 44.0 44.0 100.0
Total 100 100.0 100.0
From the total of 100 respondents 56 were using loyalty cards and 44 were not member of any loyalty program.
Satisfied by the loyalty cards
Satisfied
Frequency Percent Valid Percent
Cumulative
Percent
Valid Highly Satisfied 12 12.0 12.0 12.0
Satisfied 50 50.0 50.0 62.0
Neutral 22 22.0 22.0 84.0
Dissatisfied 13 13.0 13.0 97.0
Highly Dissatisfied 3 3.0 3.0 100.0
Total 100 100.0 100.0
From the total of 100 respondents 12 were highly satisfied, 50 were satisfied, 22 were neutral, 13 were dissatisfied and 3 were highly dissatisfied with the loyalty program.
Loyalty program like more
which_type
Frequency Percent Valid Percent Cumulative Percent
Valid Which give money off products and
services2 2.0 2.0 2.0
Relevant to me 14 14.0 14.0 16.0
Rewards Immediately 21 21.0 21.0 37.0
Easy to understand 24 24.0 24.0 61.0
Use reward with payment or credit
card21 21.0 21.0 82.0
Benefits available to members of
loyalty scheme only7 7.0 7.0 89.0
Use reward with my mobile phone 9 9.0 9.0 98.0
Nothing 2 2.0 2.0 100.0
Total 100 100.0 100.0
From the total of 100 respondents 2 were rewards which give me money off products or service, 14 were relevant to me, 21 were reward immediately, 24 were easy to understand, 21
were use reward with payment or credit card, 7 were benefits available to member, 9 were use reward with the mobile phone and 2 were nothing.Loyalty cards attract you purchase more
Purchase_more
Frequency Percent Valid Percent
Cumulative
Percent
Valid yes 65 65.0 65.0 65.0
No 35 35.0 35.0 100.0
Total 100 100.0 100.0
From 100 respondent 65 were purchase more and 35 were not.
Factors attract to have loyalty cards
Factors
Frequency Percent Valid Percent
Cumulative
Percent
Valid Apply for free 15 15.0 15.0 15.0
Attractive design 34 34.0 34.0 49.0
Attractive sales and
promotion34 34.0 34.0 83.0
wish to be a card holder 17 17.0 17.0 100.0
Total 100 100.0 100.0
From 100 respondent 15 were apply for free, 34 were attractive design, 34 were attractive
sales and promotion and 17 were wish to be a card holder.
Reason to don’t have loyalty cards
Reason_no_loyaltycard
Frequency Percent Valid Percent
Cumulative
Percent
Valid Complicated application
procedure5 5.0 5.0 5.0
Not necessary 22 22.0 22.0 27.0
inconvenience to carry cards 19 19.0 19.0 46.0
Need to pay fees or rates 21 21.0 21.0 67.0
Not attractive design 12 12.0 12.0 79.0
Insensitive to the card promotion 11 11.0 11.0 90.0
Brand do not promote loyalty
cards10 10.0 10.0 100.0
Total 100 100.0 100.0
From 100 respondent 5 were complicated application procedure, 22 were not necessary, 19 were inconvenience to carry the cards, 21 were need to pay fees, 12 were not attractive design, 11 were the card promotion and 10 were brand do not promote loyalty cards.
Reason for not using loyalty cards
Reason_for_notusing
Frequency Percent Valid Percent Cumulative Percent
Valid Small Purchase, Not necessary to
use12 12.0 12.0 12.0
Forget to carry card 15 15.0 15.0 27.0
Lack on Information 14 14.0 14.0 41.0
Lost card, no need to re-apply 22 22.0 22.0 63.0
Not attracted by promotion and
sales30 30.0 30.0 93.0
Unwilling to carry cards 7 7.0 7.0 100.0
Total 100 100.0 100.0
From 100 respondent 12 were purchase small items, 15 were forget to carry card, 14 were lack of information, 22 were lost card not need to re-apply, 30 were not attracted by the promotion and sales and 7 were unwilling to carry out the cards.
T-Test
One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
Recession 100 2.5100 .81023 .08102
More_loyal 100 2.5100 .81023 .08102
More_advantage 100 2.2200 .87132 .08713
Information_safe 100 2.2800 1.02573 .10257
benefit_companies 100 2.2600 1.13369 .11337
Existingcustomer 100 2.5000 1.07778 .10778
Remember_to_use 100 2.3300 1.02548 .10255
One-Sample Test
Test Value = 2
t df Sig. (2-tailed)
Mean
Difference
95% Confidence Interval of the
Difference
Lower Upper
Recession 6.295 99 .000 .51000 .3492 .6708
More_loyal 6.295 99 .000 .51000 .3492 .6708
More_advantage 2.525 99 .013 .22000 .0471 .3929
Information_safe 2.730 99 .008 .28000 .0765 .4835
benefit_companies 2.293 99 .024 .26000 .0351 .4849
Existingcustomer 4.639 99 .000 .50000 .2861 .7139
Remember_to_use 3.218 99 .002 .33000 .1265 .5335
H0: Disagree
H1: Agree
1. Recession: In this study, significant level is 0.05, from the research significant level is
0.000. So, the null hypothesis is rejected because it is less than 0.05 so, customer is
agree for recession.
2. More Loyal: In this study, significant level is 0.05, from the research significant level
is 0.000. So, the null hypothesis is rejected because it is less than 0.05 so, customer is
agree for more loyal.
3. More Advantage: In this study, significant level is 0.05, from the research significant
level is 0.013. So, the null hypothesis is accepted because it is more than 0.05 so,
customer is disagree for more advantage.
4. Information Safe: In this study, significant level is 0.05, from the research significant
level is 0.008. So, the null hypothesis is accepted because it is more than 0.05 so,
customer is disagree for information safe.
5. Benefit Companies: In this study, significant level is 0.05, from the research
significant level is 0.024. So, the null hypothesis is accepted because it is more than
0.05 so, customer is disagree for benefit customer.
6. Existing Customer: In this study, significant level is 0.05, from the research
significant level is 0.000. So, the null hypothesis is rejected because it is less than
0.05 so, customer is agree for existing customer.
7. Remember to use: In this study, significant level is 0.05, from the research significant
level is 0.002. So, the null hypothesis is rejected because it is less than 0.05 so,
customer is agree for remember to use.
Crosstabs
Gender * Satisfied
Gender * Satisfied Crosstabulation
Count
Satisfied
TotalHighly Satisfied Satisfied Neutral Dissatisfied
Highly
Dissatisfied
Gender Male 5 29 10 6 2 52
Female 7 21 12 7 1 48
Total 12 50 22 13 3 100
52 people were males and out of those 5 were highly satisfied, 29 were satisfied, 10 were neutral, 6 were dissatisfied and 2 were highly satisfied. 48 people were female and out of those 7 were highly satisfied, 21 were satisfied, 12 were neutral, 7 were dissatisfied and 1 were highly satisfied.
Purchase more* Factors
Purchase_more * Factors Crosstabulation
Count
Factors
TotalApply for free Attractive design
Attractive sales
and promotion
wish to be a card
holder
Purchase_more Yes 10 17 29 9 65
No 5 17 5 8 35
Total 15 34 34 17 100
65 people were purchase more and out of those 10 were apply for free, 17 were attractive design, 29 were attractive sales and promotion and 9 were wish to be a card holder. 35 people were not purchasing more and out of them 5 were apply for free, 17 were attractive design, 5 were attractive sales and promotion and 8 were wish to be a card holder.
Findings
From the total of 100 respondent 100 were aware about the loyalty cards.
From the total of 100 respondents 56 were using loyalty cards and 44 were not
member of any loyalty program.
From the total of 100 respondents 12 were highly satisfied, 50 were satisfied, 22 were
neutral, 13 were dissatisfied and 3 were highly dissatisfied with the loyalty program.
From the total of 100 respondents 2 were rewards which give me money off products
or service, 14 were relevant to me, 21 were reward immediately, 24 were easy to
understand, 21 were use reward with payment or credit card, 7 were benefits available
to member, 9 were use reward with the mobile phone and 2 were nothing.
From 100 respondent 65 were purchase more and 35 were not.
From 100 respondent 15 were apply for free, 34 were attractive design, 34 were
attractive sales and promotion and 17 were wish to be a card holder.
From 100 respondent 5 were complicated application procedure, 22 were not
necessary, 19 were inconvenience to carry the cards, 21 were need to pay fees, 12
were not attractive design, 11 were the card promotion and 10 were brand do not
promote loyalty cards.
From 100 respondent 12 were purchase small items, 15 were forget to carry card, 14
were lack of information, 22 were lost card not need to re-apply, 30 were not attracted
by the promotion and sales and 7 were unwilling to carry out the cards.
52 people were males and out of those 5 were highly satisfied, 29 were satisfied, 10
were neutral, 6 were dissatisfied and 2 were highly dissatisfied. 48 people were
female and out of those 7 were highly satisfied, 21 were satisfied, 12 were neutral, 7
were dissatisfied and 1 were highly dissatisfied.
65 people were purchase more and out of those 10 were apply for free, 17 were
attractive design, 29 were attractive sales and promotion and 9 were wish to be a card
holder. 35 people were not purchasing more and out of them 5 were apply for free, 17
were attractive design, 5 were attractive sales and promotion and 8 were wish to be a
card holder.
Recommendation
People will purchase more if company do best promotions and sales.
Female are more dissatisfied with the loyalty programs.
Most of the people don’t go for loyalty programs because of fees and inconvenience.
All the respondents were aware about the loyalty cards.
Conclusion
The study was undertaken with an objective to identify the role of loyalty cards: method of
attracting new customers. Another aim of the study was to find out that how many of the
customers are aware about the loyalty programs and are the member of particular brand.
As most of the respondents were aware about the loyalty cards the company should promote
its loyalty program more to get more benefit out of it.
Loyalty programs encourages customer to purchase more which will help the company to
increase its sales through such programs.