1. Identify the benefits for a company to implement a loyalty program 2. What are the design...

Question:

1. Identify the benefits for a company to implement a loyalty program

2. What are the design characteristics of an effective loyalty program?

3. What are the benefits of having a tiered loyalty program such as Sephora’s?

4. Describe Sephora’s loyalty program design characteristics in both countries. What are the main differences? Which loyalty program is most effective at developing customer loyalty? Why?

5. Are both Sephora’s French and American premium programs worth what they spend to reward customers? Why do both programs have a limited time validity and a specific requirement regarding the amount spent per year?

6. Could the premium loyalty program implemented in France be adapted to the U.S. market? Explain.

Synopsis: Sephora is a beauty products retail chain founded in France by Dominique Mandonnaud in 1970 and owned today by Moët Hennessy Louis Vuitton (LVMH), the world’s leading luxury goods group. Sephora has a strong presence in several countries around the world. It operates approximately 2,300 stores in 33 countries worldwide, with more than 430 stores in North America. It opened its first U.S. store in New York in 1998. The case compares loyalty programs between countries.

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1 Develop repeat purchase behavior Engender customer commitment and create a bond with the retailer sense of community Encourage retailer loyalty Collect customer data on transactions customer contact...View the full answer

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Retailing Management

ISBN: 978-1259573088

10th edition

Authors: Michael Levy, Barton Weitz, Dhruv Grewal

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Question Posted: Dec 03, 2018 11:57 AM

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1. Identify the benefits for a company to implement a loyalty program 2. What are the design...

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1 Develop repeat purchase behavior Engender customer commitment and create a bond with the retailer sense of community Encourage retailer loyalty Collect customer data on transactions customer contact...View the full answer

Retailing Management

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