Walmart Customer Loyalty Program Save Money, Live Better, Reward Yourself!
Travis Godderidge Rick Hayes Darrell Johnson Chad Mikels
Services Management Section 2 Team 5
February 24, 2013
Table of Contents Executive Summary Background Research Companies researched, program names and descriptions Description of the Proposed Program Company overview Target customers Suggested Program Names Features and Benefits Terms and Conditions Duration of the Program Initiating and Marketing Tracking Device for Customers Estimates costs to implement and sustain the loyalty program Summary and Recommendations References
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The proposed plan is simple and straightforward but can be improved with options such as tiered rewards program for volume customers or customers that shop across service departments at our supercenters. The proposed program is recommended to be tested in major market supercenters and verified prior to a national rollout. This program provides unique benefits to our customers that do not exist today in addition to the low price offerings that are standard in our stores.
Companies researched for background information Overview: The Safeway Club Card program is a simple and convenient way to save money while shopping. The Club Card program also benefits Safeway by tracking the shopping trends of the cardholder as well as the cardholder’s demographics. This allows the marketers to target segments of customers for special promotions and online electronic coupons. Benefits: Cardholders receive exclusive savings throughout the store. These savings can be multiplied by using “Just for U”, an online application that allows Safeway to customize offerings for each cardholder. Savings are automatically deducted at checkout and shown on the receipt. Card is not necessary to earn points. For every dollar spent on groceries and pharmacy purchases, 1 gas reward point is earned. Get 2 points for every dollar spent on gift cards. Get $0.10 off gas for each 100 points earned. Drawbacks: Drawbacks are few. Gas discounts are only good on the first 25 gallons. Safeway does track the shopper’s purchases and uses the information to target advertising on “Just for U”. They also gather personal data to determine demographics for marketing use as well. Comments: Good program that keeps customers loyal. It is a win –win program with Safeway capitalizing on the information gathered each time the card is used and the customer reaping significant savings. Overview: A member of REDcard has the opportunity to sign up for a Target Debit or Credit card and receives certain discounts and benefits for use. The credit card functions like a normal card. The debit card is used similarly to a check, is connected to your checking account, and can only be used at Target. Benefits: Easy customer tracking. Customer discounts on grocery, shipping, pharmacy. Targeted marketing. Not complex. A customer can pick a local school and 1% of all purchases by the customer will be donated to that school. Drawbacks: Very high APR. Must manage credit card. Can only use Debit card at Target. Program does not offer any sort of “loyalty ladder”. Comments: The most interesting part of the target reward program is the ability to apply for not only a credit card, but also a debit card (REDcard) as well and not worry about credit card fees. Local school benefit has local community appeal.
Safeway Club Card
Overview: This program is designed to reward frequent shoppers of Fred Meyer. This includes the retail store, the...