Summarize the problems associated with frequency or loyalty programs
What will be an ideal response?
a. Making the reward too high – although the value of the program to the customer should exceed the cost of being a member, the programs should also be cost effective.
b. Ubiquity – you should target your best customers with these programs and provide a compelling reason to join.
c. What kind of loyal customers are you actually getting? – it is possible to confuse loyalty with repeat purchasing.
d. Lack of inspiration – many programs are simply copies of other programs.
e. Lack of communicating with customers – loyalty/frequency programs need to have a significant communication component to retain customer satisfaction.
f. Insufficient analysis of the database – to maximize the value of these programs, these data must be mined for better market segmentation, targeting, and new product development.
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What opportunity does the use of social media offer an organization?
A) The amplification of a business mistake B) The ability to discuss comments from unhappy customers C) Less hiring costs D) The building of goodwill with customers E) Product branding
Dubin Company is operating at capacity and wants to add a new service to its expanding business. The new service should be added as long as service revenues exceed the sum of variable costs and fixed costs.
Answer the following statement true (T) or false (F)
The physical arrangement of the various parts of an ad, including headlines, subheads, illustrations, body copy, and identifying marks, is known as a(n)
A. layout. B. visual. C. body copy. D. artwork. E. narration.
How does the Federal Communication Commission help regulate advertising?
What will be an ideal response?