Case study for customer loyalty programs in retail stores
(1) Choose a retail chain where you have shopped and/or worked. Imagine that you are a VP of Customer Engagement for that store. Gander Mountain
(2) The CEO has asked you to prepare a memo for the Board of Directors. You are asked to comment on whether the Pathmark strategy ? debit/loyalty cards ? would be appropriate for your store.
Discussion (750 to 1000 words, excluding title page) should cover these topics.
You are encouraged to use sub-headings related to each question.
(a) Would this type of card be appropriate for your target market? Why or why not?
Gander Mountain stores would greatly benefit from offering loyalty cards to its customers. We currently compete with other outdoor stores such as Bass Pro Shop, LL Bean and Cabela's. Some of our customers also purchase many of the items we sell at Wal-Mart, Target and other chain stores. Many people come to our store because of the atmosphere. They like the outdoor themes, the neat hunting and camping supplies and the technology on display in the form of fish finders and GPS units. However, while many people look at our merchandise, a fair number of those see the prices and choose to wander over to Wal-Mart and purchase an admittedly inferior product but for a cheaper price.
One way for us to convince shoppers to become customers is by issuing a loyalty card with their first purchase. By vesting them in our stores we offer an incentive to continue purchasing goods from us instead of always seeking out the cheapest price. Customers will be able to accumulate loyalty points and redeem those points for merchandise. Offering loyalty cards will also be beneficial for us because we will be able to monitor the purchasing habits of our customers and will be better able to gauge the types of products they are interested in. This should help eliminating overstocking of products that will not sell easily and will help streamline our purchasing process.
Cite the resources used using APA format.