IB Business Management 5.9.9 Customer Loyalty Programs Notes

Building Long-Term Customer Relationships

Everyone wants to run a business where customers don't just buy once and keep coming back.

But how?

Many companies start customer loyalty programs to reward repeat customers, encouraging them to choose your business over others.

Definition

Customer Loyalty Program

A structured marketing strategy designed to encourage repeat purchases by offering rewards, discounts, or exclusive perks.

Example

A coffee shop's loyalty program might reveal that many customers buy a pastry with their morning coffee.
The shop could then offer a discount on pastries to encourage more sales.

Benefits of Loyalty Programs

1. Enhanced Customer Retention

Why It Matters: Keeping existing customers is often more cost-effective than acquiring new ones.

How It Works: Personalized rewards make customers feel valued, encouraging them to return.

Tip

Starbucks Rewards offers points for every purchase, which customers redeem for free drinks, keeping them loyal to the brand.

2. Increased Sales

Why It Matters: Loyalty programs drive more frequent purchases.

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Note

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Tip

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Definition

Paywall

(on a website) an arrangement whereby access is restricted to users who have paid to subscribe to the site.

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Note

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Tip

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Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris.
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IB Business Management 5.9.9 Customer Loyalty Programs Notes

Building Long-Term Customer Relationships

Benefits of Loyalty Programs

1. Enhanced Customer Retention

2. Increased Sales

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Excepteur sint occaecat cupidatat non proident

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Building Long-Term Customer Relationships

Benefits of Loyalty Programs

1. Enhanced Customer Retention

2. Increased Sales

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Duis aute irure dolor in reprehenderit

Excepteur sint occaecat cupidatat non proident

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Unit 1: Introduction to Business Management - Core operational components and business functions6 subtopics

Unit 2: HR Management - Motivation, Structure, Hierarchy7 subtopics

Unit 3: Financial Management - Accounting, Ratio evaluation, Core Financial Documents9 subtopics

Unit 4: Marketing Management - The 7 P's, strategies and forecasting6 subtopics

Unit 5: Operations Management - Production Methods, Production planning and management9 subtopics

BM Toolkit - Core business frameworks and tools15 subtopics

IB Business Management 5.9.9 Customer Loyalty Programs Notes

Unit 1: Introduction to Business Management - Core operational components and business functions6 subtopics

Unit 2: HR Management - Motivation, Structure, Hierarchy7 subtopics

Unit 3: Financial Management - Accounting, Ratio evaluation, Core Financial Documents9 subtopics

Unit 4: Marketing Management - The 7 P's, strategies and forecasting6 subtopics

Unit 5: Operations Management - Production Methods, Production planning and management9 subtopics

BM Toolkit - Core business frameworks and tools15 subtopics

Building Long-Term Customer Relationships

Benefits of Loyalty Programs

1. Enhanced Customer Retention

2. Increased Sales

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Duis aute irure dolor in reprehenderit

Excepteur sint occaecat cupidatat non proident

Unlock the rest of this chapter with a free account

Building Long-Term Customer Relationships

Benefits of Loyalty Programs

1. Enhanced Customer Retention

2. Increased Sales

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Duis aute irure dolor in reprehenderit

Excepteur sint occaecat cupidatat non proident

Unlock the rest of this chapter with a free account