Application of Knowledge - 4.5 Customer Loyalty

Question 1

Describe Reward points

Answer 1

• Used to incentivize customers coming back.
• Issue is that there needs to be plenty enough points to warrant a customer’s return. Many sites do not give enough and this is either ineffective (best) or a turn-off (worst).

Question 2

Describe gift accounts

Answer 2

• Gift cards can be an effective way of spreading the news about a brand.
• Often purchased around Christmas if giver doesn’t know what the giftee wants from a store.
• Can be a mark of great loyalty to a brand.