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Impact of Loyalty Schemes on Customer Fidelity in the Aviation Industry

   

Added on  2020-10-22

16 Pages5655 Words68 Views
Impact of loyalty schemes on customerfidelity in the aviation industry

Table of ContentsLITERATURE REVIEW................................................................................................................12.1 Measure the effectiveness of loyalty scheme in market...................................................12.2 What are the reasons behind loyalty of stakeholders and customers...............................52.3 Impact of loyalty development programmes on tourist allegiances................................82.4 Recommendation for enhancing the quality of loyalty program....................................11REFERENCES .............................................................................................................................14

LITERATURE REVIEW2.1 Measure the effectiveness of loyalty scheme in marketThe loyalty program is nothing new, but this means it can be outdated. As per theinvestigation, the large number of customers groups are make effectiveness in the loyalty ofschemes and strategies in better manner. Every year business can expand their loyalty program inthe form of providing discounts, special promotions, free rewards system, etc. that can help inredeem by customers. While customer loyalty program are common place, evidence indicationthat are not seen as strategies which are rendering the services and facilities in better manner.Therefore, the measurement of impact on customers loyalty program which is not essential anddevelop new reward system such as vouchers, game platforms and loyalty cards in effectivemanner. The common way that are used by marketing manager of entire aviation industry is tomeasure the results of loyalty program which is simple for comparing with sales quality of largenumber of staff members against the sales of non member, after that it will determine the highlevel of sales number regarding loyalty program (Aaker and Joachimsthaler, 2012). There arecorrect attribution which are missed the equation and the loyalty program is very complex foranalysing the company income and revenue in better manner. For measuring the effective loyaltyscheme, they need to follow all approaches and concept which are made by company. There arevarious aviation companies which are also measure their customers loyalty system which helpthem in analysing their needs and demand and according to their demand, they are given themappropriate services and facilities. For example; British airways which is a multinational airlinecompany provide high quality based goods and services to their passengers as compared withthis there are different airline organisations such as Cello aviation, eastern airways, easy jet, etc.which are offering low cost products and facilities to their passengers for making customersloyalty in proper manner. This will maintain the goodwill and reputation of these organisation.The loyalty scheme can encourage and motivate the business repeat and also assist theircustomers satisfaction. There are advantages and disadvantages of various loyalty systems andthis can assess their effectiveness.Point system is one of the common loyalty program that is determine as points system.There are various customers who are earning high points while buying with the help of membercard. Such points are assembled and gathered in various sort of discount and advantages of1

customers. Along with this, point system is providing high loyalty program for their businesseswhose customers are making small but developing frequent buying systems. It is one of the greatpoint system which maintain loyalty system of Airline industry. This is one of the famouscompany which provide effective services and facilities to their passengers. This is very simplesystem and Airways sector can make random discount and special birthday rewards formaintaining their buyers in better manner. While comparing between various aviation industrysuch as Cello aviation, eastern airways, easy jet, etc. also offer these type of system and policieswhich assist them maintaining customers loyalty. Tier system is the major difference between tiered program and points programme is thatwhere tiered schemes can provide and offer reward system in the long time period. This systemwork for serving small rewards for connecting with the program, after that they will increasingthe rewards cost by which customers will became loyal. It will tend towards work that can helpin doing appropriate task which need higher commitment such as insurance, travel andhospitality sector (Chuah, Marimuthu and Ramayah, 2014). The airline sector will getadvantages with this system. If large customer base are buying small products and items thenthey will enjoy the services and facilities which are provided to them in the airline. The tieredsystem will discourage them for the next level of unachievable.VIP status is all about for getting customers to paying future privileges that can gaincomplex result or outcome, that can show the certain possibility in better manner. At the timewhen VIP rewards program is tempting from different business point of view then they willmake and develop appropriate customers services and facilities in their airlines. For the wholeaviation sector, they are providing VIP system to their rich passengers and other low class peopledoes not getting all the high level services and facilities in proper manner. Assess the effectiveness of rewards system is all about after execution of appropriatecustomers loyalty program, this can be imperative while analysing and help in increasing theretention system of customers or create high level of satisfaction among them. There are variousways which help in doing effectiveness in the current business operations and functions. Someterms which assist them in measuring the loyalty scheme in the large market place and also theycan evaluate the rewards program success level. Customer retention rate is clearly describe about measurement and evaluation of howwill customers are stay in the market place for long time period. The overall point of loyalty2

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