“We use brands to project who we want to be in the world, how we want people to perceive us and how we want to feel about ourselves.” (Debbie Milman)
A reasonable and subsequent advantage big brands have over smaller brands as these brands have huge sum of wealth and they can jeopardize a part of it for various ad unique diversion programs of their customers. Unluckily, smaller brands are devoid of enough wealth and hence they are incapable of jeopardizing their newbie business since their business is even at stake.
For retaining and maintaining the loyalty of customers, an American company called American express has started a program called ‘Plenti’ which is recognized as U.S first brand loyalty program encompassing a number of retailers.
This express will allow the American shoppers to gain points from the retailer from which they are buying a XYZ commodity for example a pair of jeans. In response to buying a pair of jeans, the shopper will get some points which will compensate any other payment like paying up a phone bill etc. On contrary, in the history, the gained points were only used within the demarcation of the retailer which has allotted the points.
Long run
In the long run, this type of loyalty programs are much long lasting, strengthening and hence helps in coalescing the bond of benevolence between the brands and the customers. This type of bond is very much needed in the retailer world since the competition is elevated and it is seriously a loss to lose a customers because new customers are formed with tremendous efforts and it is much easier to retain a customer rather than divert a consumer into a customer.
These programs will also help in saving money on other less significant programs, elevation of sales by new promotions and transformation of consumers into customers.
The prime focus in this program is to pay pivotal attention to those shoppers who shop frequently, thereby giving them a better and more rejuvenating offer which will eventually enable them to stick to their retailers for a longer while.
Observation
It has been fairly observed throughout the United States that those companies which annually promote and give rise to these kinds of loyalty programs are the ones which are more popular in their target niche. And the ones who neglect this scheme are in turn neglected by their customers.
It is of much worth and summit importance that customers must be retained. In UAE as well, it has been predicted that similar programs will be conducted.
“Products are made in the factory, but brands are created in the mind.” (WalterLandor)
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