The Loyalty is generally assumed as the behavioral aspect of the customer related with the repeat buying. But if the customer is attached with you because she has no better alternative, will it still be called loyalty? Loyalty can be understood with the help of its two components i.e. attitudinal loyalty and behavioral loyalty.
Customers positive attitude towards your brand i.e. brand preference, belief, commitment and intention to buy and Customers positive behavior such as how frequently customer buys your product, recently when she has bought, how much is the monetary value of purchases.
Loyalty Programs are the schemes offered to customer as reward for their cumulative patronage with the brand. It can be immediate or future incremental benefits to customer.
Loyalty Program can be offered:-
a. As Loyalty schemes (cards) such as membership card with point accumulation for desired awards or special discounts
b. Customer clubs such as Sams Club by Wal-Mart, Harley ownership club. Not very much prevalent in India
c. Sales promotion such as free premium for continuous purchase, rebate or cash back.
A readymade garment retail establishment or a retail group may issue a loyalty card to a consumer and consumer can use the card as a identification means to be eligible for special discounts or point accumulation.
Issuing card is better idea for retailers to track the consumer behavior towards their brands. In fact the behavior can be studied as brand behavior and further analyzed to know why customer is buying certain similar brands ignoring other brands on same parameters but slightly differs in offering.