A loyalty program is an e-commerce marketing strategy that encourages customers to keep buying from a brand by rewarding the clients (Keskin, 2022). First, a good royalty program should identify a customer base based on its products. Second, the company should find a way of making a relationship with clients. Thirdly, the customer should motivate customers to buy more from the company. This can be done through gifts, selling products on offers, and giveaways. Finally, the company should develop an online platform where the clients can participate effectively in the company’s affairs.
The Wheel of Royalty Elements
The wheel of service or the wheel of royalty is model companies and businesses use to build loyalty in customers and maintain them (Wirtz, 2018). Second, it is a model used to determine how a company should target, acquire and retain customers (Wirtz, 2018). Third, it aims at building relationships with customers based on loyalty (Wirtz, 2018). The wheel of loyalty is composed of three elements. First, build a foundation of loyalty, create loyalty bonds, and reduce churn drivers. These elements can be used by businesses and companies to develop a loyalty program to retain online customers.
Recommended Loyalty Program and its Implementation.
Below is recommended royalty program for P supermarket and how it can be implemented.
P Supermarket should have a customer motivation sector or a rewarding sector where customers can engage in certain activities to win awards and get discounts on the online shopping platform. The sector will be an implementation of the element of the Loyalty wheel, which requires the Supermarket to build a foundation for loyalty. This will make the customers loyal to P Supermarket’s online shop if the shop keeps its promises to deliver the awards that the customer has won. Below are some of the features that the customer motivation sector should have.
Use of Referral Bonus
P Supermarket’s online shopping platform should issue customers with referral codes. When a customer refers their friend or a family, and they shop from them, the Supermarket should give the referred customer a discount on a sale that, for example, exceeds $500 and give the customer a bonus for referring others.
Use of Shopping Vouchers
Shopping vouchers give a customer a chance to shop for free. The Supermarket should give out vouchers to customers who maybe shop a consistent number of times from the online platform or if they shop for a certain amount of money. This will motivate the customers to shop for P supermarket instead of other online platforms. The customers, once given vouchers, will be loyal to P supermarket. Once the customers are awarded shopping vouchers, there will be created loyalty bond between P supermarket and its customers.
P Supermarket should allow customers to earn points while they shop. The points should be redeemable after reaching a certain amount. The customers can redeem them to have money to shop or top up to buy something of their choice or be given something designated for a specific number of points.
P Supermarket shopping online platform will have a customer review sector where they will evaluate the quality of services offered. After the service is delivered, the customers fill out the quality service assurance forms. This will help P Supermarket identify its weak points and why some customers are dissatisfied with its services. It will help the Supermarket reduce churn drivers. The Wheel of Loyalty has an element that helps a business retain customers by identifying why the customers stop shopping from them over a given period. Customer reviews and quality assurance forms will help P Supermarket identify and retain customers by addressing customer dissatisfaction.
The status of online entrepreneurship for Market P has been destroyed by poor customer services, late deliveries, and unfulfilled offers to Mrs. Keung’ and probably other customers. The company uses the SERVQUAL method recommended above to improve customer service to address these issues. After excellent customer service, the customer should employ the Wheel of Royalty element. Finally, the Supermarket should develop a loyalty program to ensure it gains customers and retains them.
Keskin, S. (2022). 7 of the Best Customer Loyalty Programs You Can Copy (2022). Retrieved 15 May 2022, from https://sleeknote.com/blog/customer-loyalty-programs
Wirtz, J. (2018). Managing customer relationships and building loyalty (1st ed., pp. 9-61). World Scientific. https://www.researchgate.net/publication/319664411_Winning_in_Service_Markets_Series_Vol_10_Managing_Customer_Relationships_and_Building_Loyalty