Professional Documents
Culture Documents
MKT 605N - 18
MKT 605N - 18
MKT 605N - 18
product or service needs from offering organizations?“ Airlines, credit card companies, ho- mim of
tels, supermarkets, and many other businesses provide customers with bonus points—or Integrated Mgrfietiflg
some other form of accumulated reward—for their continued patronage. mum“…
For example, to encourage its customers to use its debit/ gift card and to remain loyal pur-
NOTES
chasers, the Caribou Coffee chain developed an incentive whereby consumers who used the
Caribou Card and spent at least $1.50 per visit over 10 visits would receive a $4 credit on their
Caribou Card."-1 The Pizza Hut food chain encouraged repeat purchasing from its customers
by promoting a fee-based program in which customers paid an annual fee of $14.99;. in re-
turn, they received an initial free large pizza and an additional free pizza every month if they
placed two orders per month. This program enabled Pizza Hut to retain its best customers
and keep them from switching their loyalties to other pizza makers.2112
In step with the consumer-centric movement discussed in the context of key lMC feature
#1, loyalty programs are increasingly being designed so that consumers are in control of how
their reward points are used rather than restricting them to using the points only in a manner
directed by the brand manager. As a case in point, Canada’s Air Miles Reward Program en-
ables its frequent fliers to use their reward miles for shopping at over 100 sponsors and allows
them to acquire movie tickets, electronic merchandise, Walt Disney World tickets, gift cards,
and literally hundreds of other product options of their choosing.23
Takeaway from Key IMC Feature #4: Because it is more economical to maintain current
arstorners than to recruit new ones, use marcom programs that encourage repeat purchasing and
enhance brand loyalty whenever possible.
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