Evaluate the usefulness of store loyalty cards as a market research method.

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  • Created by: jerd
  • Created on: 30-04-23 15:05

Evaluate the usefulness of store loyalty cards as a market research method.

Advantages

  • can help retain customers, increase traffic + improve sales
  • can collect data that will help drive effective marketing strategies - if a company requires registration to distribute their loyalty cards
  • keeping records of past purchases can help design better promotions + advertising campaigns
  • reduced advertising costs + increased return on investment (ROI)
  • can attract customers away from competition
  • can improve customers lifetime value - relationship with the business

Disadvantages

  • overuse of program causes other marketing campaigns to lose effect - difficulties arise in attracting more customers willing to purchase at regular price
  • when used ineffectively they can reduce value of a product or service + cause customers to make assumptions about the brand

Evaluation

Loyalty schemes were created to reward loyal customers + keep them coming back to stores. Loyalty cards work for both companies + consumers. Points can be converted into vouchers.

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