Question

A primary reason for developing a frequency program is to encourage customers to be loyal to a business or brand. For each of the following products below, discuss the merits of a frequency program. What types of incentives would individuals need to join the frequency club and then participate in the program?

Local restaurant

Auto repair service

Printing service

Clothing retailer

Answer 1

Take a note…

CG

Frequency program is a method to retain the customers to a business and ensure their continual involvement in the near and long term future. All major organizations has now come up with membership schemes based on frequent usage of their services in return for a value added service or monetary benefit.

Looking at few examples:

1. Local Restaurant : Merits of frequency program at restaurant for customer would be:
Specialized food based on customizations
Easy to order mechanisms
Discounts on bi weekly visits
Discounts on bulk orders and party orders

2. Auto Repair service: Merits of frequency program at service center for customer would be:
Discounts on monthly checkups
Discounts on spare part replacement
Lower rate on cash cleanup and washing
Dedicated service assistant

3. Printing Service: Merits of frequency program at printing service for customer would be:
Discounts on bulk printing
Lower rates on color prints
No cost on page scan
Lower cost for internet browsing
Custom designed cover pages
Wide selection on cover pages and hard bound cases

4. Clothing Retailer: Merits of frequency program at printing service for customer would be:
First intimation on arrival of new clothes
First intimation on discounts
Extra discounts on shopping for more than specified slab limits
Free alteration and home delivery