Loyalty Programs – Study of customer relationship

Loyalty Programs: Customer Factors


Several factors influence the success of the loyalty program, among which the role of the customer is important. The customer is a subject of modern society, which is included in an extensive network of communications, economic and information flows.

Structure of Loyalty Program’s Rewards


To understand the loyalty program, it is important to understand the role of rewards offered to consumers. Reward is directly related to the consumer's sense of satisfaction, so the structure of rewards should be in line with the task of producing it. To analyze the structure, it can be conventionally divided into such parts as type of rewards, size, frequency and representation.

Sephora Loyalty program


Sephora is a prestige omni-retail network of perfume and cosmetics stores. Beauty Insider members can redeem their rewards points for things like gift cards and discounts, helping to offset purchase prices without devaluing the products. Loyalty members can also redeem points for more exclusive things like limited edition products or in-store beauty tutorials.

Starbucks Loyalty program


Starbucks has a bonus loyalty program, which was created as a sign of gratitude and further encouragement of regular customers for their purchases. Starbucks Rewards members are able to earn and accumulate "Stars" that can be redeemed for Starbucks Rewards benefits at participating Starbucks stores and are eligible to receive certain additional benefits.

Loyalty Program Tiers


Many loyalty programs are based on a multi- tiers structure - from 1 and 2-3 tiers to 10 tiers and more. For example, tiered program AliExpress now has 4 tiers - Silver, Gold, Platinum, Diamond. The very idea of dividing into tiers is based on the Pareto principle, also known as the 80/20 principle (20% of clients contribute the most to the firm's revenue).

Conceptual Model of Loyalty Program Effectiveness


The main factors of the loyalty program effectiveness fall into three main groups: 1. the structure of the loyalty program, 2. the structure of the rewards, and 3. consumer fit with the loyalty program.

How to activate SPAR Club card in Russia?


As an example of activating a SPAR Club card, we give the Russian version of activating the loyalty program. In other countries where the SPAR distribution network is present, the registration procedure may vary. But the essence remains unchanged

SPAR Loyalty program


SPAR International is the association of wholesalers and retailers (mainly European countries, but also South Africa, Australia, Argentina). In all SPAR’s formats (SPAR, EUROSPAR and SPAR-express) there is a customer loyalty policy. In different countries, these are different programs, but the essence the same – clear rewards schemes for purchases, based on Membership card.

How to get and register COOP card?


Becoming a member of the COOP is easy - you have to pay £1, which costs one share in the cooperative. Then the card must be registered. Below we will consider separately how to register for a temporary card.

Coop Loyalty program


Coop is one of Switzerland's largest retail and wholesale companies with around 2.5 million members. Coop loyalty program is arranged as follows: when buying selected goods and services, 5% of the amount spent is credited to the buyer's account. Each Coop member has its own Coop membership account.