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TRANS Asian Journal of Marketing & Management Research (TAJMMR)
Year : 2016, Volume : 5, Issue : 12
First page : ( 61) Last page : ( 69)
Online ISSN : 2279-0667.

Building target corporation's customer loyalty programme through tesco's club-card scheme

Joseph Anjitha Mariya*, Sharaf Jayesh**

*School of Business Studies and Social Sciences, Christ University, Bangalore, India

**School of Business Studies and Social Sciences, Christ University, Bangalore, India

Online published on 11 July, 2017.

Abstract

Today, marketers and business owners prefer to provide loyalty programs because they have the ability to improve customer retention for a specific operation. The purpose of this study is to analyze the impact of the major retail loyalty scheme; Tesco's Clubcard, on customer loyalty and consequently suggest a retail loyalty scheme for Target Corporation. The paper is based on literature reviews from journal articles, books and online news, related to the research area. The paper takes a case study approach, discussing Tesco's Clubcard scheme factoring how customers earn rewards, the deals offered to them, the Dunnhumby impact, how effective was the scheme, and Target Corporation's Loyalty Scheme factoring the RED card program, information tracking systems and where Target Corporation lacks in the same. It is suggested that Target Corporation consider a rewards program that is not limited to usage of debit or credit cards only. It's becoming difficult to cater to all the customer demands as the average customers are becoming smarter and aware. There is need for exploring multiple channels of delivering promotional deals to customers. Influence form Tesco's loyalty scheme can help Target to reduce its cost on promotions and most importantly increase the customer loyalty towards the company.

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Keywords

Loyalty programs, Tesco Clubcard, Target RED card, reward programs, customer retention, retail chain.

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