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Unit 12: The Customer Service Desk

Notes

Task Design a customer service program for a reputed mall. Also state the ways to
improve it.
It seems that virtually every retailer tries to reward loyal customers these days. The number of
such programs at places like Target, Cub Foods and Best Buy has soared over the past decade.
And most shoppers eagerly sign up for the programs, looking to save money wherever and
whenever they can.
“Loyalty programs have retained customers,” he said. “It’s a way of recognizing valuable
consumers, and providing them with more value and greater benefit for shopping with your
store.” Companies certainly covet the data they can harvest from loyalty programs, using it to
better understand customers and refine marketing and sales efforts. “The whole point is to
connect with your customers, and make you the first choice and top of mind.”

Notes In marketing generally and in retailing more specifically, a loyalty card, rewards
card, points card, advantage card, or club card is a plastic or paper card, visually similar to
a credit card or debit card that identifies the card holder as a member in a loyalty program.
Loyalty cards are a system of the loyalty business model. In the United Kingdom it is
typically called a loyalty card, in Canada a rewards card or a points card, and in the United
States a discount card, a club card or a rewards card. Cards typically have a barcode or
magstripe that can be easily scanned, and some are even chip cards. Small key ring cards
(also known as key tags) which serve as key fobs are often used for convenience in carrying
and ease of access. Retail rewards programs are about engaging guests.
By presenting the card, the purchaser is typically entitled to either a discount on the current
purchase, or an allotment of points that can be used for future purchases. Hence, the card is the
visible means of implementing a type of what economists call a two-part tariff.
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 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 favourite 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).
On-line loyalty programs: Recently there has been a move away from traditional magnetic
card, stamp or punchcard based schemes to online loyalty programs. While these schemes vary,
the common element is a push toward eradication of a traditional card, in favour of an electronic
equivalent. The choice of medium is often a QR code. One prominent example is the US-based
Punchd, which became part of Google in 2011. Others, like MazeCard, have offered similar
programs in other continents.
Disloyalty cards: In three cities, some independent coffee shops have set up experimental
‘disloyalty card’ programs, which reward customers for visiting a variety of coffee shops.

Did u know? Neiman Marcus is credited with creating the first customer loyalty program
in the retail industry, which is called “InCircle.”

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