Loyalty Program - Apparel and Footwear Retailer

Loyalty Program - Apparel and Footwear Retailer Essay example
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Name: Instructor’s Name: Course: Date of submission: Loyalty Program – Apparel and Footwear Retailer The primary focus of this paper is to discuss the issue of Loyalty programs, how do they operated, what are their benefits to the customer as well as the retailer and what are the risks and drawbacks.


“Gap”, “Banana Republic” and “Old Navy” are the divisions whose focus is towards the clothing and apparel industry whilst “Piperlime” and “Athleta” divisions are a part of the footwear industry (. Loyalty programs are considered to be techniques used by the marketing team of any organization in order grab and retain new and old customers respectively. The basic phenomenon of a loyalty program is to reward a customer in such way that he gets encouraged and enhances his/her buying ability. Loyalty programs are designed in such a way that customers are issued a particular loyalty, points or club card. This card is similar to credit card and it usually holds barcode or a magstripe on its back. Every time a customer makes a purchase, his/her loyalty card is scanned via machines such as the bar code readers. This process entitles the customer to either receive a discount on his/her purchases or the customer, in some instances, is given the option to gather reward points which he/she can claim at any future date of purchase. ...
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