Q1) The loyalty program which provides a value creation for customers is highlighted below –
Through the porgram, the firm adds few points to the consumer’s account on every purchase depending on the value of the purchase. The points can be accumulated and redeemed on future purchases, as they can be valued to money for eg. 20 points equal to 1 $.
There are different levels of loyalty status, which includes Diamond, Gold, and Silver which depends on the value of purchases and the number of points accumulated, used for future purchases etc.
The rewards associated with the loyalty program are good as the points are accumulating on routine purchases of the consumers.
Consumers have choice on when to redeem the points, how much to redeem, what they can purchase in exchange etc.
The app consists of the purchase history; the number of points awarded on each purchase and accumulated the products that can be purchased with the accumulated points etc.
The information is sufficient to guide the consumers towards making purchases of their choice.
The loyalty program/app can be improved by collaborating and partnering with various brand stores so that consumers can redeem wherever they wish to.
Q2) Below are the value creation processes utilized in the program –
Social Networking – The program being introduced through social media communication messages and push notifications from consumers who can download the app, make the purchase and earn reward points that can be used to redeem for later purchases, the program has not only welcomed the consumers towards making purchases of their choices but also kept them engaged with redemption for new purchases.
Brand use – The firm has created a brand recognition by not only providing value to the consumers through the product but also creating additional value through reward points. The firm has customized its programs by increasing the scope of the reward program to add more brands and stores where the purchases can be made.