Loyalty Program - Wikipedia, the Free Encyclopedia
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Loyalty program - Wikipedia, the free encyclopedia Log in / create account Article Discussion Read Edit View history Loyalty program From Wikipedia, the free encyclopedia Main page Contents This article needs additional citations for verification. Featured content Please help improve this article by adding reliable references. Current events Unsourced material may be challenged and removed. (November Random article 2006) Donate to Wikipedia Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal Interaction buying behavior — behavior which is potentially beneficial to the firm.[1] Help In marketing generally and in retailing more specifically, a About Wikipedia loyalty card, rewards card, points card, Community portal advantage card, or club card is a plastic or paper Recent changes card, visually similar to a credit card or debit card, that Contact Wikipedia identifies the card holder as a member in a loyalty Toolbox program. Loyalty cards are a system of the loyalty business model. In the United Kingdom it is typically called Print/export a loyalty card, in Canada a rewards card or a points card, Languages and in the United States either a discount card, a club card Deutsch or a rewards card. Cards typically have a barcode or Español magstripe that can be easily scanned, and some are even chip cards. Small keyring cards (also known as keytags) Français which serve as key fobs are often used for convenience in .carrying and ease of access עברית Lëtzebuergesch A retail establishment or a retail group may issue a loyalty Various loyalty cards Nederlands card to a consumer who can then use it as a form of 日本語 identification when dealing with that retailer. By presenting Polski the card, the purchaser is typically entitled to either a discount on the current purchase, or an Português allotment of points that can be used for future purchases. Hence, the card is the visible means of Русский implementing a type of what economists call a two-part tariff. Suomi The card issuer requests or requires customers seeking the issuance of a loyalty card to provide a Svenska usually minimal amount of identifying or demographic data, such as name and address. Application forms usually entail agreements by the store concerning customer privacy, typically non-disclosure (by the store) of non-aggregate data about customers. The store — one might expect — uses aggregate data internally (and sometimes externally) as part of its marketing research. These cards can be used to determine, for example, a given customer's favorite brand of beer, or whether he or she is a vegetarian. Where a customer has provided sufficient identifying information, the loyalty card may also be used to access such information to expedite verification during receipt of cheques or dispensing of medical prescription preparations, or for other membership privileges (e.g., access to a club lounge in airports, using a frequent flyer card). [hide] http://en.wikipedia.org/wiki/Loyalty_program[7/19/2011 8:17:12 AM] Loyalty program - Wikipedia, the free encyclopedia Contents 1 History 2 By continent and country 2.1 North America 2.1.1 United States 2.1.2 Canada 2.2 Oceania 2.2.1 Australia 2.2.2 New Zealand 2.3 Europe 2.3.1 United Kingdom 2.3.2 Republic of Ireland 2.3.3 Germany 2.3.4 Switzerland 2.3.5 Italy 2.3.6 Hungary 2.3.7 Spain 2.4 Asia 2.4.1 Hong Kong 2.4.2 Iran 2.4.3 Indonesia 2.4.4 India 2.4.5 Malaysia 2.4.6 Singapore 2.4.7 Taiwan 2.4.8 Shanghai 3 Program management 4 Criticism 5 See also 6 References History [edit] For information on historical loyalty programs, see Loyalty marketing history. By continent and country [edit] North America [edit] United States [edit] In the U.S., several major supermarket and fish market chains and at least one major pharmacy require the cards in order for customers to receive the advertised loyalty price. These include Smith's, Kroger and Safeway (each through both their own name and many of their regional chain names), Albertsons, Winn-Dixie, Harris Teeter, Ingles, Giant Eagle, Tops, and CVS/pharmacy. Cards from other, even competing chains will generally work at other stores to receive the advertised loyalty price, because only a few companies make the cards, but stores generally will not allow this since it will not allow a customer to be tracked, though a customer can make it work if they use a self- checkout. Even though this will work to receive the advertised loyalty price, any points and/or future discounts someone may be trying to earn from using the card at another store will not be added since a different chain would use a tracking system with a database independent of the other chain. http://en.wikipedia.org/wiki/Loyalty_program[7/19/2011 8:17:12 AM] Loyalty program - Wikipedia, the free encyclopedia However, some stores may also allow a customer to use the store's card if a customer does not have theirs on hand (Kroger does not allow this although customers can enter their phone number to bring their card up if they forget it, or have another customer's phone number entered) or if the customer is new and agrees to sign up right away. Many of the stores allow accumulation of fuel discounts. Some have tie-ins with airline frequent-flyer programs, and some agree to donate a percentage of sales to a designated charity. Most notably, Wal-Mart does not have a loyalty card plan (though someone who purchases a gift card can generally get a 3 cent discount per gallon of gas at the fuel stations located on Wal-Mart premises). The practice is also common among book and music retailers, from large chains to independent retailers. In some instances, the customer purchases the card and receives a percentage discount on all purchases for a period of time (often one year), while in other instances, a customer receives a one-time percentage discount upon reaching a specified purchase level. (For example, a bookseller's loyalty card program might provide a customer with a 10% off coupon once the customer has spent $200.00 at the bookseller.) Best Buy's loyalty program similarly offers points redeemable for dollar- amount discounts after accumulating a set number of points along with other discounts from time to time, though the card is not required to receive their advertised price in most cases. Independent hardware stores such as Ace Hardware and True Value added customer loyalty programs in order to compete more effectively against larger chains as well as gather customer data. In addition, office supply retailers Staples, Inc. and Office Depot started issuing club cards in 2005.[citation needed] Almost all of the major hotel chains (Best Western, Choice Hotels, Holiday Inn, Marriott, Super 8 Motels, etc.) have similar cards that allow guests to earn either points (redeemable for discounts, future stays or other prizes) or airline miles (Hilton's HHonors program allows guests to earn both points and miles on the same stay, the only program to date that does so). All major US Airlines also offer rewards credit cards. Other travel related reward programs include SeaMiles, with points that can be redeemed for cruises. For now, most American retailers have not implemented club cards. In a few cases (e.g., Federated Department Stores, Kohl's) this is because the retailer already issues its own credit cards, and thus already has a direct relationship with the consumers most likely to shop at its stores. Also, many retailers are simply not large enough to justify the cost of creating, promoting, and operating a club card program. Some supermarket customer loyalty cards inadvertently work at the scanners of other non-affiliated stores. For example, a Kroger card has been successfully recognized as a respective loyal club member at stores in the Food Lion, Pathmark and Winn-Dixie chains.[citation needed] An example of a consumer-centric card (without cost, registration, or information-tracking) is the MyJoeCard, which advertises the business members through the website in Kansas City, Tulsa, and Denver. Max & Erma's has a loyalty program called Good Neighbor Rewards. Guests are rewarded based on their number of visits by either 5%, 10%, or 15%. Additionally, guests are periodically given additional rewards by way of free items added to their loyalty card electronically. Truck stop chain Pilot Travel Centers has a loyalty program for truck drivers called Driver Payback Points, which rewards drivers for fueling up by giving them points that can be used for purchase inside the store. Although it can be used for general merchandise, the program is specifically targeted to be redeemed at the restaurant chain located inside each location. Locations with McDonald's vary, due to McDonald's leasing space from Pilot and operating those separately. While some do give a 10% discount for having the card while others won't accept them at all, none of the McDonald's locations at Pilot redeem the points. A few states have begun regulating club cards. For example, supermarkets in the U.S. state of California are subject to the Supermarket Club Card Disclosure Act of 1999.[2] Some grocery chains http://en.wikipedia.org/wiki/Loyalty_program[7/19/2011 8:17:12 AM] Loyalty program - Wikipedia, the free encyclopedia have dropped their loyalty card programs. Rainbow Foods in Minnesota ended its loyalty card program after being acquired by Roundy's, leaving Minnesota with no major grocers that use such cards. There are a few online loyalty programs that offer rewards for being a loyal shopper.