Customer Relation Management - Essay Example

well as through its online shopping option enabling the customers to buy their required products and avail the demanded services from the comfort of their own home and place of work. It has been observed amongst the competitors as well as the other online and brick and mortar shop based retailers that the businesses are increasing loyalty and retaining customers by employing the strategy of offering them a debit and / or a credit based loyalty cards to them, similar to the strategy employed by Pathmark.

These cards provide the customers the facility of buying products on credit while availing loyalty based discounts and benefits on their purchased, in case of a credit loyalty card. With the debit loyalty card the customers are able to pay for their purchases without cash, through their own personal account while still availing loyalty based benefits and discounts on their purchases. The strategy for loyalty cards is being employed by well known retailers like Wal-Mart, Marks & Spencers, Amazon.

com, Pizza Hut, Subway, Gap, Banana Republic, Old navy, Victoria’s Secret etc. “"Loyalty is more important than ever in retailing today, and the way you create loyalty is through credit," says Leonard Leff, president and chief executive officer of MyReceivables.com.” (Murphy, 2001) The loyalty credit & debit based loyalty cards are being using by traditional retailing giants as well as the online retailers in order to attract the customers, motivate them to spend more on their purchases, establish the brand of the company/ retail store as well as increase repeat purchase behavior.

Best Buy Stores can initiate a loyalty card based program which is linked to a credit facility provided to the customers. The company will have to form affiliations and a contract with credit providing companies for launching this product. The benefit of this loyalty program would be that the customers would be able to buy the products that they want by simply using Best Buy loyalty card