Reply only needs to be 1-2 paragraphs and please use 1-2 references
When developing a successful loyalty/reward program companies must ensure that “the program supports and is consistent with the brand’s value proposition; the program adds value to the product or service; Lifetime customer value is high” (Winer &Dhar, 2016, p. 429). Yi and Jeon agree that “the program should be perceived as valuable by the customers,” (2003, p.231). They go on to suggest five variables that contribute to perceived value: cash value, redemption choice, aspirational value, relevance, and convince (2003, p.231).
It is interesting to compare one of the rewards programs I participate in, Barnes and Noble, against the above factors. Barnes and Noble has a rewards program that targets frequent book readers and offers them discounts on their purchase for a year. This program is consistent with the brand’s value proposition and due to the “perks,” $60 dollars in bonus coupons, 40% off of list price for hardcover best sellers and 10% off of almost everything else I would associate a high value to it. However, when compared to the standards set forth by Yi and Jeon there are some opportunities for improvement. It cost the customer $25 dollars a year to participate in Barnes and Nobles program. Therefore, this is best directed at customers making a large purchase who will immediately see their return on investment. I appreciate that the B&N rewards programs offers discounts on best sellers and there are no specific exempted items or titles. I am a frequent reader so the value is certainly relevant for me. The variables in which B&N could improve would include creating a sense of aspiration value, and convenience. While it is easy to use the card or my phone number in-store, there is a lack of convenience with online purchases and e-books are not available for my current reader so if I want something immediately I usually purchase from Amazon.
Winer, R.S., & Dhar, R. (2016). Marketing Management. 4th Edition. Pearson Learning Solutions, 10/2016. VitalBook file.
Yi, Y., & Jeon, H. (2003). Effects of loyalty programs on value perception, program loyalty, and brand loyalty. Journal of the Academy of Marketing Science, 31(3), 229. Retrieved from https://saintleo.idm.oclc.org/login?url=https://search-proquest-com.saintleo.idm.oclc.org/docview/224881850?accountid=4870