Loyalty programs such as those run by airlines do not create loyalty and retain customers. Once all competitors offer similar schemes, all that happens is that marketing costs have risen in that industry. Argue for or against the proposition that loyalty programs are effective customer retention strategies.
What is the relationship between customer satisfaction and retention?
Go online and identify three for-profit companies engaged in values-based retention marketing. What similarities can you find between them?
Some customers are inherently not profitable and ‘retain’ because they extract more value from the firm than they provide in terms of revenue, reputation and recommendation. Identify three strategies for addressing this sort of retention ‘problem’. What are the risks of each for the business?
Directions and Criteria
Question 1 should have a word count of no less than 150 words.
Questions 2 & 4 a minimum word count of 100 words.
Question 3 should have a minimum of 200 word count and at least one website cited.
A total of 550 word count for your submission.