This Powerpoint is about Loyalty Industry, it's Program and how it works.

2. Loyalty Industry
 What is Loyalty Industry?
A: These are Companies which provides loyalty solutions to the
client in different sectors to increase their business revenue.
Solutions involve in Consulting, Loyalty Program, Analytics &
reports, Technology, Rewards sourcing and fulfillment.
 What Loyalty industry do?
A: Closely work with other industries and helps in building and
growing their businesses by analyzing the market knowledge,
consumers and providing Loyalty solutions to them.

3. Loyalty Industry
 Services which Loyalty Industries Provide as follows:
 Consulting- Helps in research, designing, developing, implement and manage loyalty initiatives for clients from
various industries.
 Technology- Helps in creating the application of scientific knowledge for practical purposes, especially in
industry.
Example- The Digital Voucher Manager helps you generate unique random (coupon) numbers (numeric,
alphabetical and alpha numeric) that can be distributed to customers on purchase of products or services. You can
track customer buying behavior, distribution path, tertiary sale movement, new product acceptance and more with
this unique methodology.
 Loyalty Marketing- is an approach to marketing, based on strategic management, in which a company focuses on
growing and retaining existing customers through incentives. Branding, product marketing, and loyalty marketing
all form part of the customer proposition – the subjective assessment by the customer of whether to purchase a
brand or not based on the integrated combination of the value they receive from each of these marketing
disciplines.
 Loyalty Programs- Loyalty programs are structured marketing strategies designed by merchants to encourage
customers to continue to shop at or use the services of businesses associated with each program. These programs
benefits may be in the form of discounts, rebates, free products, or other promotions..

4. Loyalty Industry
 Some of the Loyalty Programs are,
 1.Customer loyalty program- A customer loyalty program is a structured and long-term marketing effort which
provides incentives to repeat customers who demonstrate loyal buying behavior. Successful programs are designed
to motivate customers in a business's target market to return often, make frequent purchases, and shun
competitors.
Example- Flipkart Rewards points help customer to earn points while shopping, these points can be redeemed as a
digital currency along with other benefits while shopping.
 2.Channel loyalty program- A channel loyalty program is a powerful way to develop loyal, lasting relationships
with dealers, resellers and retail partners. Combining best practice loyalty methodology with strategic incentive
program design, this solution offers proactive channel relationship management.
Example- Providing international trips as a bonus/incentive to dealers to achieve sales target.
 3.Brand loyalty program- Brand loyalty is the emotionally-charged decision of a consumer for purchasing a
particular brand again and again. The consumer has the perception that the particular brand has the qualities that
will meet their expectations and identifies with the consumer at a personal level.
Example- Loyal customers may turn into brand ambassadors for the company. This is because loyal customers are
satisfied with the brand and will spread brand awareness providing the business costless marketing.

5. Loyalty Industry
 4.Employee rewards and fulfillment loyalty program- This Program maximize employee satisfaction while
minimizing management's administrative and human resource burden. Help organizations to run a comprehensive
Employee Rewards and Recognition program.
 Only the motivated employees create positive and desired result bearing influence on the organization's intentions.
Successful organizations continuously strive to provide their employees with generous opportunities and reward
the deserving.

6. Loyalty Industry
 Loyalty business model:
The loyalty business model is a business model used in strategic management in
which company resources are employed so as to increase the loyalty of customers and
other stakeholders in the expectation that corporate objectives will be met or
surpassed.
A typical example of this type of model is: quality of product or service leads to
customer satisfaction, which leads to customer loyalty, and also leads to profitability.
There are many Business Model one of the most experienced and result oriented
model is Gap Business Model and Expanded Business Model.

7. Loyalty Industry
 Gap Business Model:

8. Loyalty Industry
 The Gap service quality model:
 The model shows the five major satisfaction gaps that organizations must
address when seeking to meet customer expectations. The model was first
proposed by A. Parasuraman, Valarie Zeithaml, and Leonard L. Berry in 1985.
 Customer:
Customer satisfaction can also be high even with mediocre performance quality if
the customer's expectations are low, or if the performance provides value
(that is, it is priced low to reflect the mediocre quality).
Likewise, a customer can be dissatisfied with the service encounter and still
perceive the overall quality to be good. This occurs when a quality service is
priced very high and the transaction provides little value.
 Company:
Gap 1: Knowledge Gap:
The knowledge gap is the difference between the customer’s expectations of
the service and the company’s provision of that service. Essentially, this gap
arises because management doesn’t know exactly what customers expect.
There are a number of reasons this could happen, including: Lack of
management and customer interaction. Lack of communication between
service employees and management. Insufficient market research.
Insufficient relationship focus. Failure to listen to customer complaints.
Gap 2: The Policy Gap:
The policy gap is the difference between management’s understanding of
the customer needs and the translation of that understanding into service
delivery policies and standards.
 There are a number of reasons why this gap can occur:
 Lack of customer service standards.
 Poorly defined service levels.
 Failure to regularly update service level standards.
Gap 3: The Delivery Gap:
The delivery gap is the difference between service delivery policies and
standards and the actual delivery of the service. This gap can occur for a number
of reasons: Deficiencies in human resources policies. Failure to match supply to
demand. Employee lack of knowledge of the product. Lack of cohesive teamwork
to deliver the product or service.
Gap 4: The Communication Gap:
The communication gap is the gap between what gets promised to customers
through advertising and what gets delivered. Again. there are a number of
reasons why this can happen: Overpromising. Viewing external communications
as separate to what’s going on internally. Insufficient communications between
the operations and advertising teams. Communication gaps lead to customer
dissatisfaction. This happens because what they receive isn’t what they were
promised. In the worst case, it may cause them to turn to an alternative supplier.
Gap 5: The Customer Gap
The customer gap is the difference between customer expectations and
customer perceptions. This gap occurs because customers do not always
understand what the service has done for them or they misinterpret the service
quality.

9. Loyalty Industry
 Some of the Business Model
 Expanded models:
 Schlesinger and Heskett (1991) added employee loyalty to the basic customer loyalty model. They developed the concepts of "cycle of
success" and "cycle of failure". In the cycle of success, an investment in your employees’ ability to provide superior service to
customers can be seen as a virtuous circle. Effort spent in selecting and training employees and creating a corporate culture in which
they are empowered can lead to increased employee satisfaction and employee competence. This will likely result in superior service
delivery and customer satisfaction. This in turn will create customer loyalty, improved sales levels, and higher profit margins. Some
of these profits can be reinvested in employee development thereby initiating another iteration of a virtuous cycle.
 Fred Reichheld (1996) expanded the loyalty business model beyond customers and employees. He looked at the benefits of obtaining
the loyalty of suppliers, employees, bankers, customers, distributors, shareholders, and the board of directors.
 Duff and Einig (2015) expanded the model to debt issuers and credit ratings agencies to investigate what role commitment plays in
issuer-CRA relations.

10. Loyalty Industry
 Aim and Scope in Loyalty Industry:
 Loyalty Industry aims to provide overall knowledge about competitive environment by understanding the
current market landscape, consumer trends and program.
 Loyalty Industry act as a supportive role in terms of building a relationship between consumer behavior and
business.
 Statistics shows that the cost incurred in captivating new customers is much more than that incurred in
retaining the existing customers. This can be made possible only by implementing customer loyalty
programs.
 Loyalty Industry proactively manage your sales channel relationships to improve brand awareness, foster
long-term commitment, develop brand advocates and win true loyalty.
 It also helps in analytics with the business logic and technology essential for implementing and managing a
successful loyalty program for your channel partners, customers or employees.
 Loyalty Industry optimize your program’s impact and their predictive nature allows you to monitor,
overhaul, and deploy activities, incentives, campaigns, and rewards that help you drive the desired behavior
amongst your channel partners.

11. Loyalty Industry
 Some of the Loyalty Service Companies:

12. Loyalty Industry