loyalty cards: method of attracting new customers

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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

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Page 1: Loyalty Cards: Method of attracting new customers

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.

Page 2: Loyalty Cards: Method of attracting new customers

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,

Page 3: Loyalty Cards: Method of attracting new customers

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.

Page 4: Loyalty Cards: Method of attracting new customers

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.

Page 5: Loyalty Cards: Method of attracting new customers

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.

Page 6: Loyalty Cards: Method of attracting new customers

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.

Page 7: Loyalty Cards: Method of attracting new customers

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

Page 8: Loyalty Cards: Method of attracting new customers

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.

Page 9: Loyalty Cards: Method of attracting new customers

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.

Page 10: Loyalty Cards: Method of attracting new customers

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.

Page 11: Loyalty Cards: Method of attracting new customers

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.

Page 12: Loyalty Cards: Method of attracting new customers

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.

Page 13: Loyalty Cards: Method of attracting new customers

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

Page 14: Loyalty Cards: Method of attracting new customers

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.

Page 15: Loyalty Cards: Method of attracting new customers

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.

Page 16: Loyalty Cards: Method of attracting new customers

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

Page 17: Loyalty Cards: Method of attracting new customers

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

Page 18: Loyalty Cards: Method of attracting new customers

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.

Page 19: Loyalty Cards: Method of attracting new customers

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

Page 20: Loyalty Cards: Method of attracting new customers

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

Page 21: Loyalty Cards: Method of attracting new customers

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

Page 22: Loyalty Cards: Method of attracting new customers

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

Page 23: Loyalty Cards: Method of attracting new customers

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.