Customer Realtionship Management

Running head: Module 2 Case Assignment

Module 2 Case Assignment

Loyalty Programs in CRM

By Brian Jewell

MGT515 Customer Relationship Mgmt

Professor: Dr. Cathy Goodwin

01/27/11

TUI University

Module 02 – Case Assignment

As the VP of Customer Enagement for Wal-Mart, I discuss whether the Pathmark strategy of debit/loyalty cards would be appropriate for my company.

(a) Would this type of card be appropriate for your target market? Why or why not?

The ability to meet a customer 's wants and needs is a driving factor that promotes customer loyalty and value in the competitive market. Most consumers are continually searching for ways to shop for convenience, bargains, and customer service as part of their commitment to remain loyal. Wal-mart should increase customer loyalty programs which will position their company to compete more effectively with companies like Target and Kmart . As Wal-Mart continues to expand across the nation it is also looking to expand its target market. Wal-Mart understands that increasing their target market also entails adding to their product base and the services that they offer. Loyalty card programs are representing a high value to consumers as it provides incentives for customers as they continue to shop at retail stores where they maintain an active membership. Wal-Mart will benefit from this type of program as it not only provides great benefits for the customer but also to Wal-Mart. Wal-Mart 's one stop shop motto has positioned the company in a valuable position . In addition to a wide variety of products and services , Wal-mart also offers a wide variety of brand names which is important to brand loyal customers . Convenience and savings are two of the most important factors consumers use to determine where they will shop. Walmart has taken steps to introduce loyalty elements into its financial services program. By coaxing consumers...