Customer Loyalty

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Carmenis right in his discussion. High levels of competition forceorganizations to come up with loyalty programs to establish strongcustomer loyalty to their products. However, before coming up withthe program, the marketing manager must ensure that it is in linewith the marketing strategy of the organization by focusing on themarket segments, the product line to cover and the number ofcustomers the program is likely to meet. Similarly, a cost-benefitanalysis must be carried out to determine the effectiveness of theprogram and ensure that its benefits outdo its costs. It is alsoimportant that a company comes up with a unique loyalty program whichmay not be similar to its competitors` (Totka, 2017). This enablesthe company to develop an edge over its competitors and attract asmany customers as possible. Lastly, it must engage the customer invarious ways including an introduction where the buyer is rewardedfor enrolling in the reward program. The second way is throughcontacting the customer may be through an email to reward him /herfor purchasing. The last level is through a two-way communication,where the retailer uses a feedback mechanism to determine anyloopholes in the program.


Similarly,Cindy was right in her discussion. Even though the company aims atmaking profits, it must consider the effects of the rewards on thevalues and quality of their product. Every customer needs qualityproducts to satisfy their needs. Furthermore, it should have somevalue to the customer so that it becomes lucrative and attracts thecustomer to take part in it. This should also apply to the loyaltyprogram. It should not only demand loyalty from the customers butalso create additional value to them as they make more purchases inthe company. Additionally, the loyalty program should be in line withthe company`s mission and vision (Winer &amp Dhar, 2016). Forexample, if the overall mission of the company is to make profits,its loyalty program should aim at achieving the same vision andmission.


Totka,M. (2017). Baked to Perfection: The secret recipe for a successfulcustomer loyalty programs. Website. Retrieved at

Winer,R. S. &ampDhar, R. (2016). Marketing Management (4th ed.). Boston,MA: Pearson Learning Solutions.