Nowadays there is few sectors that enjoy no competition. While the size of the pie (market) stays the same, everyday tens of new companies are trying to get a portion of it. Which company would not like to earn more customers, and keep the loyalty of their current customers ? Companies have to allocate high marketing budgets or repeat for ever, the discount campaigns in order to get attention of customers.
In both cases, expected returns may not be permanent and serious costs might be incurred. And even after a while, customers might become insensitive to discounts and advertisements. The ultimate goal is clear : maintaining the continuity (loyalty) of customers, and this has become more important than gaining new customers. Because real profitability comes from repeat purchases. Recognizing the customer and distinguishing repeating customers is an important success factor. This process becomes even difficult and complex as the company grows.
For consumers, it’s also important to feel ‘belonging’, part of a family. They only want to get the return for their loyalty; tangibly or intangibly. Loyalty systems help at this point. However, with current system, customers need to carry many cards with them, and since this is not possible, desired results could not be attained. In addition, customers can’t visualize earned rewards which results in decreased motivation for carrying cards.
Produced on: 15th Jan, 2013
Produced By: Paradox Studio https://theparadoxstudio.com
