Essays on Creation of a Royalty Program for an Online Grocery Store Research Paper

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The paper "Creation of a Royalty Program for an Online Grocery Store" is an excellent example of a research paper on marketing. In the modern world, competition in the market place has continuously increased. This has led to most businesses being centered on fulfilling the customer requirements and needs. This can be achieved through the alignment of the company’ s mission and vision to the fulfillment of customer requirements. This is attainable through acquiring customer’ s feedback, linking the values to their business products and services and encouraging employees to wok to the realization of these values by exhibiting it through their behavior.

Most successful companies have achieved this by paying attention to customer needs and also through consultations with their employees by implementing a customer relationship management (CRM) (Goolsbee & Brown, 2002). A Loyalty Programme as a marketing approach aims at motivating and enhancing the loyalty of customers by offering them rewards, depending on how often they shop at the stores and how much they spend. According to Pozzi (2012), they are designed to offer long-lasting and long-term benefits such that, the more a customer shops for a prolonged period and the more cash they spend on a store, the greater is the reward.

Hence, those that remain loyal to the store for a long period have greater rewards than new shoppers or those who have been customers for a shorter period. Loyalty programs are used by businesses as a form of marketing to enhance customer retention in the long-term. However, the value of the rewards and its timing are significant to the success of these programs. They have continuously become popular with most businesses implementing them in the recent past. Covielo et al (2000) note that customer loyalty programs are not only useful in the context of individual business but it can be comprehensive as well.

This is done by businesses for instance in a specific area, aiming at encouraging shoppers to shop from that locality by rewarding them in return irrespective of where they shop within the scheme’ s locality. This way customers can be given points for shopping which they can redeem later for coupons that can be used at any of the stores within the locality depending on the value of the points accumulated.

If having a comprehensive customer loyalty is not attractive to a business it can also partner with a complementary business where rewards can be used at either of the business. One problem with Loyalty programs is that some businesses adopt a single approach by using monetary rewards such as discounts. These discounts, however, are not going to influence or tie customers in the long-term. Some customers would prefer personalized shopping experience and pleasure as well as convenience hence such customers would break from their usual buying behavior so as to take advantage of the promotion and later go back to their old shopping habits, hence impacting a temporary boost in sales (Leenheer & Bijmolt, 2008).

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