Shoppers’ Clubs, Essay Example

The increased competition among retailers has necessitated the invention of ways to augment customer loyalty. As a result, the stores are aiming at attracting and keeping customers to ensure that revenues are more predictable. By offering loyalty cards, the retailers are able to monitor the shopping habits of the customers and reward them according to the volume of their spending on the specific stores.

Cash back benefits are the most common where customers save after shopping at a certain volume. The retailer offers services or discounts meant to reduce the shoppers’ burden. Through gift cards, shopping discounts, coupons and loyalty points, the retailers are able to transfer value to the shoppers as a way of attracting them to their establishments. Such offers are aimed at encouraging shopping at designated stores that provide a wide variety of goods and services in conjunction with the retailer offering the discounts. For example, an electronics store could offer movie tickets or coupons for a meal at a fast food outlet.

Stores also provide services that ease the lives of their shoppers. By joining shoppers’ savings club, shoppers can book hotels and make travel reservations through their club. Similarly, the club, in conjunction with other service providers could introduce an agency agreement through which the shoppers access the services of the two organizations under the same roof. Such services include tour organizations, road and emergency rescue services and money transfer services.

Under such an arrangement, the retailer and shoppers gain from the understanding. The shoppers are assured of exemplary service at the stores. Similarly, the savings originating from the shopping enable the shoppers to manage their finances better. The retailer on the other had is assured of increased revenues throughout the year. Similarly, to the economy, the shoppers clubs are advantageous owing to the increase in jobs emanating from the agency contacts