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Advantages Convenience tops the list Online stores are usually available 24 hours a day, and many consumers in Western countries have Internet access both at work and at home. Other establishments such as Internet cafes, community centers and schools provide internet access as well.
In contrast, visiting a conventional retail store requires travel or commuting and costs such as gas, parking, or bus tickets, and must usually take place during business hours. Delivery was always a problem which affected the convenience of online shopping. However to overcome this many retailers including online retailers in Taiwan brought in a store pick up service. This now meant that customers could purchase goods online and pick them up at a nearby convenience store, making online shopping more advantageous to customers. In the event of a problem with the item (e.g., the product was not what the consumer ordered or the product was not satisfactory), consumers are concerned with the ease of returning an item in exchange for the correct product or a refund. Consumers may need to contact the retailer, visit the post office and pay return shipping, and then wait for a replacement or refund.
Some online companies have more generous return policies to compensate for the traditional advantage of physical stores. For example, the online shoe retailer Zappos.com includes labels for free return shipping, and does not charge a restocking fee, even for returns which are not the result of merchant error.
Note: In the United Kingdom, online shops are prohibited from charging a restocking fee if the consumer cancels their order in accordance with the Consumer Protection (Distance Selling) Act 2000. A 2018 survey in the United States found 26% of online shoppers said they never return items, and another 65% said they rarely do so. Surprising stats. Information and reviews Online stores must describe products for sale with text, photos, and multimedia files, whereas in a physical retail store, the actual product and the manufacturer’s packaging will be available for direct inspection (which might involve a test drive, fitting, or other experimentation). Some online stores provide or link to supplemental product information, such as instructions, safety procedures, demonstrations, or manufacturer specifications. Some provide background information, advice, or how-to guides designed to help consumers decide which product to buy. Some stores even allow customers to comment or rate their items.
There are also dedicated review sites that host user reviews for different products. Reviews and even some blogs give customers the option of shopping for cheaper purchases from all over the world without having to depend on local retailers. In a conventional retail store, clerks are generally available to answer questions. Some online stores have real-time chat features, but most rely on e-mails or phone calls to handle customer questions. Even if an online store is open 24 hours a day, seven days a week, the customer service team may only be available during regular business hours. Price and selection One advantage of shopping online is being able to quickly seek out deals for items or services provided by many different vendors (though some local search engines do exist to help consumers locate products for sale in nearby stores).
Search engines, online price comparison services and discovery shopping engines can be used to look up sellers of a particular product or service. Shipping costs (if applicable) reduce the price advantage of online merchandise, though depending on the jurisdiction, a lack of sales tax may compensate for this. Shipping a small number of items, especially from another country, is much more expensive than making the larger shipments bricks-and-mortar retailers order. Some retailers (especially those selling small, high-value items like electronics) offer free shipping on sufficiently large orders. A number of resources offer advice on how consumers can protect themselves when using online retailer services.
These include: Sticking with well-known stores, or attempting to find independent consumer reviews of their experiences; also ensuring that there is comprehensive contact information on the website before using the service, and noting if the retailer has enrolled in industry oversight programs such as a trust mark or a trust seal. Before buying from a new company, evaluating the website by considering issues such as: the professionalism and user-friendliness of the site; whether or not the company lists a telephone number and/or street address along with e-contact information; whether a fair and reasonable refund and return policy is clearly stated; and whether there are hidden price inflators, such as excessive shipping and handling charges.
These passwords can be site specific and may be easy to remember. Although the benefits of online shopping are considerable, when the process goes poorly it can create a thorny situation. A few problems that shoppers potentially face include identity theft, faulty products, and the accumulation of spyware. If users are required to put in their credit card information and billing/shipping address and the website is not secure, customer information can be accessible to anyone who knows how to obtain it. Most large online corporations are inventing new ways to make fraud more difficult. However, criminals are constantly responding to these developments with new ways to manipulate the system.
Even though online retailers are making efforts to protect consumer information, it is a constant fight to maintain the lead. It is advisable to be aware of the most current technology and scams to protect consumer identity and finances. Product delivery is also a main concern of online shopping.
Most companies offer shipping insurance in case the product is lost or damaged. Some shipping companies will offer refunds or compensation for the damage, but this is up to their discretion. Lack of full cost disclosure a problem The lack of full cost disclosure may also be problematic. While it may be easy to compare the base price of an item online, it may not be easy to see the total cost up front. Additional fees such as shipping are often not visible until the final step in the checkout process.
The problem is especially evident with cross-border purchases, where the cost indicated at the final checkout screen may not include additional fees that must be paid upon delivery such as duties and brokerage. Some services such as the Canadian-based Wishabi attempts to include estimates of these additional cost, but nevertheless, the lack of general full cost disclosure remains a concern. Privacy Concerns Privacy of personal information is a significant issue for some consumers. Many consumers wish to avoid spam and telemarketing which could result from supplying contact information to an online merchant.
In response, many merchants promise to not use consumer information for these purposes, Many websites keep track of consumer shopping habits in order to suggest items and other websites to view. Brick-and-mortar stores also collect consumer information. Some ask for a shopper’s address and phone number at checkout, though consumers may refuse to provide it. Many larger stores use the address information encoded on consumers’ credit cards (often without their knowledge) to add them to a catalog mailing list.
This information is obviously not accessible to the merchant when paying in cash or through a bank (money transfer, in which case there is also proof of payment). Many successful purely virtual companies deal with digital products, (including information storage, retrieval, and modification), music, movies, office supplies, education, communication, software, photography, and financial transactions.
Other successful marketers use drop shipping or affiliate marketing techniques to facilitate transactions of tangible goods without maintaining real inventory. Some non-digital products have been more successful than others for online stores. Profitable items often have a high value-to-weight ratio, they may involve embarrassing purchases, they may typically go to people in remote locations, and they may have shut-ins as their typical purchasers. Items which can fit in a standard mailbox—such as music CDs, DVDs and books—are particularly suitable for a virtual marketer.
Products such as spare parts, both for consumer items like washing machines and for industrial equipment like centrifugal pumps, also seem good candidates for selling online. Retailers often need to order spare parts specially, since they typically do not stock them at consumer outlets—in such cases, e-commerce solutions in spares do not compete with retail stores, only with other ordering systems. A factor for success in this niche can consist of providing customers with exact, reliable information about which part number their particular version of a product needs, for example by providing parts lists keyed by serial number.
Products less suitable for e-commerce include products that have a low value-to-weight ratio, products that have a smell, taste, or touch component, products that need trial fittings—most notably clothing—and products where colour integrity appears important. Nonetheless, some web sites have had success delivering groceries and clothing sold through the internet is big business in the U.S. Aggregation(s) High-volume websites, such as Yahoo!, Amazon.com, and eBay, offer hosting services for online stores to all size retailers. These stores are presented within an integrated navigation framework, sometimes known as virtual shopping malls or online marketplaces. Impact of reviews on consumer behavior Important: One of the great benefits of online shopping is the ability to read product reviews, written either by experts or fellow online shopper. XXX.
Online Shopping Rewards From Wikipedia, the free encyclopedia Online shopping rewards are a type of loyalty program to e-commerce shoppers. The advent of online shopping has resulted in the rapid development of a large number of rewards programs that offer incentives for shopping. These programs may be points-based (redeemable for products or vouchers), cashback, airline frequent flyer-miles-based, hotel points, donations to charity, or even carbon offsets. These programs are often presented to the consumer as coalitions of large numbers of retailers, but are probably better described as competitive loyalty programs, to differentiate them from their precursors the original single retailer non-competitive loyalty program. The Marketing Model Rewards portals have grown very rapidly in most major markets, especially in the US, Canada, UK, and Australia.
While they have roots in traditional off-line non-competitive loyalty programs, such portals often add considerably greater value to the customer than their traditional off-line equivalent, which accounts for their dramatic growth and high levels of customer acceptance. Cash back and reward-based websites operate using a marketing model known as affiliate marketing, which is a performance-based marketing tool. Affiliate marketing networks make it possible to track in detail where users come from (which website is referring the customers), what users buy (down to the product) and when. Rewards-based websites track and reconcile this information with their own user database, and pass on a proportion or even all of the commission received to the customer. From the customer’s perspective they are getting something back, usually at no extra cost and often with an additional discount or bonus.
From the retailer’s perspective, the role and costs of marketing are passed on almost entirely to the affiliate. While hundreds of thousands of websites can easily use affiliate programs to advertise products and retailers (from sports blogs, fanzines through to almost any niche website), cash back and rewards-based programs are much fewer in number, because of the need to track, patel shopping, store, and retrieve individual customer information with a high degree of precision. Typology A particular typology is the incentive program. Online shopping programs tend to be consumer-oriented points-based or cash back programs.
Traditional programs focus their proposition on extrinsic motivation and rewards: cash back or a choice of attractive rewards. A variant, though not unique to online shopping programs, is the intrinsic reward. Cause related websites, much like affinity credit card schemes, give their users the opportunity to donate the cash or points to a charity, school, or club. Others still give their users a range of options. With consumer concern https://patelshopping.com/ about climate change growing, a number of green rewards shopping portals have appeared. Instead of cash back or points these websites offer carbon credits (also known as carbon offsets) or green gadgets to encourage consumers to shop with particular retailers or make changes to their lifestyle. Points-based web sites may have different currencies, which makes it difficult to compare the customer benefit. Most reward websites retain a proportion of the commission, and only industry insiders are aware of the nuances of the business model used and therefore the customer benefit. From the consumer’s perspective it may not always be clear whether the benefit going to the supported cause is the most effective way of raising funds. For example, in some countries like the UK, a significant tax benefit can be provided to the charity by donating in cash. While the majority of green reward websites also offer some useful information and advice on greener living, few of them seem to encourage more sustainable consumption. ___________Loyalty Programs
From Wikipedia, the free encyclopedia
Various loyalty cards or 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 exist covering most types of commerce, each one having varying features and rewards-schemes. In marketing generally, and in banking, entertainment, hospitality, retailing, and travel more specifically, a loyalty card, rewards card, points card, advantage card, club card is a plastic or paper card, visually similar to a credit card, debit card, or digital card that identifies the card holder as a participant in a loyalty program. Loyalty cards (both physical and digital) relate to the loyalty business-model. Cards typically have a barcode or magstripe that can be easily scanned, although some are chip cards or proximity cards. By presenting such a card, purchasers typically receive either a discount on the current purchase, or to an allotment of points that they can use for future purchases. Hence, the card is the visible means of implementing a type of what economists call a two-part tariff. Application forms for cards usually entail agreements by the store concerning customer privacy, typically non-disclosure (by the store) of non-aggregate data about customers. The store uses aggregate data internally (and sometimes externally) as part of its marketing research. Over time the data can reveal, for example, a given customer’s favorite brand of beer, or whether he or she is a vegetarian. Where a customer has provided sufficient identifying information, the loyalty card may also be used to access such information to expedite verification during receipt of cheques or dispensing medical prescription preparations, or for other membership privileges such as access to an airport lounge using a frequent-flyer card. In recent years, businesses now offer these loyalty cards in the form of a loyalty app, which means users are less likely to lose their card. Almost all major casino chains also have loyalty cards, which offer members tier credits, reward credits, comps, and other perks based on card members’ “theo” from gambling, various demographic data, and spend patterns on various purchases at the casino, within the casino network, and with the casino’s partners.
Examples of such programs include Caesars Rewards (formerly called Total Rewards) and MGM Resorts International’s Mlife. Loyalty programs have been described as a form of centralized virtual currency, one with unidirectioal cash flow, since reward points can be exchanged into a good or service but not into cash.
Asia Mainland China The Social Credit System is a loyalty program operated by the state and private businesses. Individuals with high social credit scores can get faster internet, use high speed trains, and take mainland flights. Hong Kong Hong Kong offers many loyalty programs. They include Octopus Rewards, operated by Octopus Cards Limited, which allows Octopus card users to earn points in certain shops, including McDonald’s fast food outlets and Wellcome supermarkets. The MTR Corporation also operates MTR Club for regular customers of its transport network. In terms of shopping or purchasing groceries, different chain stores under common ownership often share the same loyalty program, such as A.S. Watson Group’s Money Back, which can be used at Parknshop, Watsons, and Fortress stores, as well as the corporation’s retail partners.
India PAYBACK India is India’s largest coalition loyalty program, with over 50 million members, over 50 partners and 3000 network partner outlets. German loyalty program operator Loyalty Partner took a controlling interest in i-mint in June 2010 and renamed the program PAYBACK India in July 2011. BPCL’s PetroBonus fuel card program has 2 million members. Indian Oil’s fleet card program XTRAPOWER and retail program XTRAREWARDS claim a combined customer base of 3 million. Iran The first Iranian loyalty program launched in 1996 by Iran Credit Card Group Zarrin Card. East Credit Card Group Kish launched its loyalty program in 2005. Malaysia Genting Highlands Resort has a loyalty card, WorldCard, that is primarily used to gain points in Genting Highlands’ Resorts and Attractions. However, it can also be used for Starbucks, Coffee Bean and Häagen-Dazs and it is valid in three countries: Malaysia, Singapore and Hong Kong.
Loyalty program can also build in term of app version, which widely use in Starbucks app, TK Bakery App, Loudspeaker App, AppPay. Philippines In the Philippines, several brands of establishments and stores offer membership cards that the card owner can use to earn points and redeem rewards. The gigantic shopping mall chain, SM Supermalls offers the SM Advantage Card or SMAC that can be used as a loyalty card that earns points as you shop and its partner bank, BDO Unibank also offers BDO Rewards Card that functions the same as the SM Advantage Card. Retailers accepting the card include: The SM Store, SM Supermarket, SM Hypermarket, ACE Hardware and Watsons Pharmacy. Another mall chain, Robinsons Malls has a program named Robinsons Rewards. It can also be used when shopping in Robinsons Department Stores, Robinsons Supermarkets, and Toys “R” Us branches in the Philippines. Jollibee, the fast food giant and its subsidiaries (Chowking, Greenwich Pizza, and Red Ribbon launched the HappyPlus card, in which the cardholder can use the card to earn happy points and use the points to get a free food. It is also planned to be used in Mang Inasal, the most recent member of the Jollibee Foods Corporation.
The country’s largest drug store, Mercury Drug also introduced the Suki Card in which the membership is free but the applicant will need to purchase at least PhP 1000 worth of single or cumulative purchases. Singapore In Singapore, the three largest loyalty programs are Plus!, WorldCard and SAFRA Card. The Plus! LinkPoints Programme has more than 1 million members and over 600 participating merchant outlets.
Europe Finland Loyalty programs are very popular in Finland. 80% of people are in at least one loyalty program and over 50% are member of at least two programs. Two major coalitions with loyaly programs operating in multiple business sectors. These are S-Group with S-Etukortti (70% of population, 2014]) and Kesko with K-Plussa (67%). These cards can be equipped with Visa or MasterCard Debit / Credit payment features. Both loyalty programs are being aggressively pushed to consumers. New major player in Finnish and Baltic markets is Pins(19%). In Georgia the biggest loyalty card program is run by Universal Card Corporation since 2010. Universal scheme unifies more than 250 companies where customers collect bonus points on UNICARD while purchasing food, goods, garments/clothing, fuel, travel packages, tickets, pharmacy, or into desirable gifts presented within UNICARD’s online catalogue. Germany The largest loyalty program in Germany is Payback, which was launched in 2000. According to a study in August 2007 by GfK, 61% of German households have a Payback card. It listed the HappyDigits [de] program as having a 42% share, with the Shell ClubSmart program as third most popular with 13%. In March 2008, the coalition program DeutschlandCard [de] was launched by Arvato. As at March 2009 it had more than 4.5 million active cardholders. HappyDigits was disbanded at the latest of the year 2009/2010.
Two coalition loyalty programs in Hungary are SuperShop and Multipoint. SuperShop, established in April 2000, is backed by partners SuperShop Spar, OBI, OMV, Photo hall, Burger King. Italy After the exit of Nectar from the market in 2015, Payback is the most popular coalition loyalty program with more than 10 million card holders and relevant anchor partners such as Carrefour, Esso, H3G (Tre), Mediaset Premium, BNL BNP Paribas and more than 60 online partners. Supermarket chains Esselunga, Coop and Il Gigante also have well established loyalty programs. Other stores such as Interio, a furniture retailer, are also joining the market with loyalty cards and store-based incentivised credit cards. Loyalty programs are also widely spread in the consumer goods Ihas been the 2008 Lavazza Carmencita digital collection followed by many other brands such as Barilla, Casa Modena-Giravolte and Tena Lady of the Multinational Sca Hygiene Products.
Latvia One of the largest loyalty programs in Latvia which is working as operator for many merchants is Pins. Walmoo is a loyalty platform that was launched in 2013 that allows their users to create their own loyalty program. In the Republic of Ireland loyalty cards have been in operation since 1993, when Superquinn introduced its SuperClub loyalty card scheme. This is regarded as having been the prototype for such schemes in Europe. However, loyalty cards did not expand until 1997, when Tesco Ireland introduced its Clubcard scheme, shortly after its purchase of Power Supermarkets. This was an expansion of the UK scheme—cards for this are identical to those used by Tesco in the UK and can be used in both countries.
Dunnes Stores responded with the introduction of their own ValueClub scheme in June 1997. Today these are three main schemes operating in Ireland, although ValueClub has been withdrawn from Dunnes’ Northern Ireland stores. SuperValu has introduced their own loyalty club called Real Rewards. All five major petrol station chains in the country operated a scheme during the late 1990s—Esso had Tiger Miles (with Tesco ClubCard points offered as an alternative), Maxol had Points Plus, both of which operated on the principle of getting items from a gift catalogue, with Shell using Dunnes’ scheme, Texaco using the SuperQuinn system, and Statoiloperating a cash-back system, Premium Club. Due to increasing oil prices and tightening of margins, these schemes ended by the end of 2005. Tesco Ireland’s petrol stations still, however, give Clubcard points. Rewards From Us To You is a hotel loyalty program for independent hotels in Belgium, Holland, Ireland & the United Kingdom. It was founded in November 2011 by parent hotel management company PREM Group, who is based in Dublin, Ireland. This program does not issue loyalty cards but does everything electronically through email. This company has over 33 participating hotels and serviced apartments. Guests earn points every time they stay with any hotel in the club. Guests can later redeem free night Switzerland Loyalty programs are popular in Switzerland, with the two main supermarket chains, Migros and Coop prominent. The M-Cumulus card can be used at the Migros supermarkets, Ex Libris, SportXX, and other retailers.
The Coop Supercard earns points on purchases at Coop and a variety of other associated stores. Other stores such as Interio, a furniture retailer, are also joining the market with loyalty cards and store-based incentivised credit cards. The only coalition loyalty scheme in Switzerland is Bonus Card with a network of over 300 independent retail partners. In recent years, online loyalty programs have also started to target the Swiss. First to make an offering in Switzerland was German-based Webmiles. Claiming to be Switzerland’s first online bonus program, Bonuspoints was launched in early 2008 and offers incentives for shopping at 70 different online stores. Another Russian loyalty program is Mnogo.ru. This project is fully independent. Members of the club who own clubcards can gain points in exchange for daily purchases made both online and offline at partners’ shops. A customer receives points while answering the quiz, playing games and getting special offers. Cumulative points can be exchanged for prizes from the company’s partners. Spain Voilà Hotel Rewards was launched in June 2008 with Husa Plus, a co-branded loyalty program for Husa Hoteles. The Husa Plus program is offered at approximately 145 Husa Hotels, primarily located in Spain. Barcelona-based online travel agency Budgetplaces launched its loyalty programme in early 2011. My budgetplaces lets clients earn credit every time they make a reservation. United Kingdom The loyalty card market in the UK is one of the most significant in the world, with most major chains operating some form of reward system. Passcard has been claimed to be the first reward scheme or discount card, created around by Gary Wilson in 1981 and later known as Passkey. One of the first loyalty cards backed by a major chain is believed to be the Sainsbury’s Homebase Spend and Save Card in 1982. Of the “big four” supermarkets, Sainsburys and Tesco and Morrisons operate loyalty cards for general supermarket shopping.T esco’s Clubcard scheme have been criticised for not offering value for money. When Clubcard or Nectar points are used for money off supermarket shopping, they roughly equate to a 0.5% discount, although offers can increase this discount by as much as four times for certain rewards. Some retailers with banking operations also award points for every pound spent on their credit cards, and bonus points for purchasing financial services. After trials in 1994, Tesco launched its Clubcard program, the UK’s first nationwide supermarket-only loyalty card scheme, in 1995 with dunnhumby. Sainsbury’s launched its Reward Card in 1996. This was replaced by the Nectar card in 2002, which was launched in partnership with other major brands. Boots UK began planning a loyalty card in November 1993, but building a CRM-focussed loyalty program. With an investment in excess of GB£30 million, the Boots Advantage Card, launched in 1997, is the largest smart card retail loyalty card scheme in the world, and the third-largest retail loyalty scheme in the UK in terms of cards issued. The Advantage scheme has 16.4 million cardholders using the card online and in store and at 3rd party retailers. The scheme gives a cardholder four points for every pound spent in a Boots store under normal shopping circumstances. Most stores have kiosks which can be used in conjunction with the cards for “exclusive offers” which are printed on vouchers and can be used at the till. These vouchers enable money off specific purchases, extra points for specific purchases, or money off or extra points when spending has reached an amount specified on the voucher, or other offers such as double points on either everything of specific products. For example, a customer may get a voucher which provides 250 extra points when they have spent £50 in one transaction. Points equal pence in store, and can be spent at any time and on anything in store, providing the card has enough points to cover the entire cost of the merchandise. The kiosk system was replaced with the Boots App in 2014, where customers can automatically load offers on to their Advantage Card straight from their smartphone. Safeway’s ABC Card was discontinued in 2000. Airlines, Hotels and other loyalty schemes also offer cards. Marks and Spencer and the John Lewis Partnership have credit cards which give vouchers in return for spending, and do issue separate loyalty cards such as the myJohnLewis card, myWaitrose card in the John Lewis Partnership and the Sparks Card in by Marks and Spencer. Game has a reward card scheme for which every pound spent a customer is rewarded 10 points; for every 1000 points that one collects, one gets £2.50 to redeem in the store, or online. Preorders earn a customer 20 points per pound. HMV has a reward card called purehmv which allows the customer to claim a variety of rewards, including in-store discounts. The UK’s largest retail bookmaker Ladbrokes launched the Odds ON! loyalty programme in late 2007, the first retail betting loyalty scheme in Europe. Customers earn points on each bet which can be redeemed for bonus jokers and free bets. Ladbrokes Poker operates a loyalty program for its online poker players where players are able to exchange their poker points for gift & prizes. Maximiles is an online coalition program claiming 1.6 million members in the UK. Maximiles also operates online programs in France, Spain and Italy. The opening of the first Best Buy store in the UK—at Thurrock, Essex, in 2010—was accompanied by the launch of a customer engagement program called My Best Buy. This was described as “a tiered, digital loyalty and customer engagement program that is designed to build a lifelong relationship with the customer by providing a personalized experience through which they can manage their digital and technology needs.” However, this business ceased trading in 2012: the 11 stores were closed in January, and My Best Buy closed on February 29. The Ice Organisation launched MyIce.com in 2010, a scheme which rewards consumers for shopping in a more sustainable way. Ice’s mission is to promote greener goods and services to mitigate climate change, and works with national and local retailers to encourage more local, sustainable consumerism.
The Co-operative Food, the brand adopted by many of the larger members of the UK co-operative movement does not operate a traditional loyalty card scheme. Instead, as consumer co-operatives, they operate a profit sharing scheme whereby an annual dividend is paid to all member-owners which is proportional to the total spend with the businesses during the previous year. Such dividend schemes have existed since the Rochdale Pioneers of the 1840s. Paper record-keeping transformed in the 1960s into a trading stampscheme managed by the Co-operative Wholesale Society (CWS), which was gradually withdrawn as margins declined. The loyalty card concept was used by some co-operatives to restore dividend payments at the turn of the 21st century, notably by the CWS’s “Dividend” card, which was replaced by The Co-operative Membership card program.
The current members’ dividend scheme is provided using the national co-operative brand and allows members of The Co-operative Group and many of the larger regional co-operative societies to earn their ‘share of the profits’ based upon their spend at many of the outlets which use The Co-operative brand rather than just at their own co-operative society (e.g. The Co-operative Group or the Midcounties caused controversy as members were now required to pay taxes and fees on flights they used for redemption. The scheme became more flexible and included redemption opportunities such as car hire and days out, broadening the ways in which members can spend their points. North America (USA / Canada and now Mexico) Canada The oldest loyalty program in Canada is Canadian Tire money, in which the Canadian Tire company gives out coupons which look like currency. Air Miles is Canada’s largest loyalty program – Air Miles can be earned at more than 100 different sponsors and almost a thousand different rewards.
More Rewards founded in 1992 operates mostly in the Western Canadian provinces with close relations to its grocery partnerships with the Overwaitea Food Group and its small coalition of other retailers. Aeroplan began in 1984 as Air Canada’s frequent flier program, but since 2008 has been owned by Aimia Inc. (previously Groupe Aeroplan Inc.). Example of companies that run their own programs include HBC Rewards, which began at Zellers in 1986 as Club Z; the PC Optimum program for free groceries (from Loblaws), The Body Shop’s Love Your Body Card, Staples Business Depot’s easyRewards Savings Card (formerly Dividends) and Sobeys’ Club Sobeys card. The plum rewards program is Canada’s largest loyalty program for reading enthusiasts, offering everyday discounts and special coupons at Chapters, Indigo Books and Music, Coles, SmithBooks, and chapters.indigo.ca. PetPerks is PetSmart’s reward program where members get a pre determined discount on any item in the store that displays a PetPerks tag under the regular price tag. Vicinity is loyalty platform for small business retailers that was launched in May 2013 by Rogers Communications Inc. Almost every gas station chain in Canada offers some sort of loyalty program itself or in partnership. For example, Air Miles at Shell gas stations, PC Plus at Esso and Mobil, Petro Points and More Rewards at Petro-Canada, Canadian Tire money at Canadian Tire gas stations, or a coupon that grants the customer 3.5 cents off per litre of fuel purchased at Sobeys Fast Fuel locations that can be used at a Sobeys banner store. United States In the USA, several major retail chains, movie theatre networks, supermarket and fish market chains, and the three major pharmacy chains require the cards in order for customers to receive the advertised loyalty price.
They include (each through both its own name and its related regional chains), AMC Theatres, Best Buy, Circle K, County Market, CVS/pharmacy, Giant-Carlisle and its sister chains Giant Eagle and Giant-Landover, Hallmark, Hy-Vee, IKEA, Ingles, JCPenney, Kohl’s, Kroger, Menards, Office Max, Price Chopper, Regal Entertainment Group, Rite Aid, Safeway, Sears (also used by Kmart), ShopRite, Stop & Shop, Target, Tops, Toys “R” Us (also used by Babies “R” Us), Walgreens, Wegmans, and Winn-Dixie. Many retailers allow accumulation of fuel discounts. Some have tie-ins with airline frequent-flyer programs, and some agree to donate a percentage of sales to a designated charity. Most notably, Walmart does not have a loyalty card plan, although anyone who purchases a gift card can generally get a 3 cent discount per gallon of gas at the fuel stations located on Walmart premises, in the 23 states with those Walmart fuel stations. The practice is common among book and music retailers, from large chains to independent retailers. In some instances, the customer purchases the card and receives a percentage discount on all purchases for a period of time (often one year), while in other instances, a customer receives a one-time percentage discount upon reaching a specified purchase level. For example, a bookseller’s loyalty card program might provide a customer with a 10% off coupon once the customer has spent US$200 at the bookseller.
Best Buy and Searsoffer loyalty programs that offer points redeemable for dollar-amount discounts after accumulating a set number of points along with other discounts from time to time. Independent hardware stores, such as Ace Hardware and True Value, added customer loyalty programs in order to compete more effectively against larger chains as well as gather customer data. Customers with an association with a particular brand feel benefits for being part of the program. Ace’s program also offers customers a way at the time of purchase to get items at a price which would normally require completing a mail-in rebate.
In addition, office supply retailers Staples and Office Depot started issuing club cards in 2005: they offer rewards in the form of credits towards future purchases on items purchased in the store or online (which items and how much credit changes periodically). Almost all major hotel chains (Best Western, Choice Hotels, Holiday Inn, Marriott, Super 8 Motels, etc.) have cards that allow guests to earn either points (redeemable for discounts, future stays, or other prizes) and/or airline miles Hilton’s HHonors program allowed guests to earn both points and miles (referenced as double-dipping) on the same stay, the only program to date that did so but which ended April 1, 2018]. All major U.S. airlines also offer rewards credit cards. Other travel related reward programs include SeaMiles, with points that can be redeemed for cruises. Some American retailers have not implemented club cards, including grocery stores ALDI, Publix, and Whole Foods. Between 2007 and 2013 (before their purchase of Safeway), Acme Markets, Albertsons, Jewel-Osco, and Shaw’s (all owned by Albertsons LLC) eliminated their loyalty cards in favor of discounts for all shoppers. Few states regulate club cards. As an example, supermarkets in California are subject to the Supermarket Club Card Disclosure Act of 1999.
Prominent online loyalty programs include Belly, FatWallet, Fivestars, Memolink, MonaBar, Mypoints, Perka, and Swagbucks. Some online loyalty programs focus on “other-directed” consumers including iGive.com, Schoolpop, The BSP Rewards Network, and Upromise. Cardmobili, Foursquare, and Shopkick focus on using smartphones such as the Android and iPhone. Since March 2011, Foursquare has partnered with American Express to provide Foursquare points when using an American Express card, and since November 21, 2011, Shopkick has partnered with Visa to provide Shopkick points when using a Visa card at locations such as Best Buy, Old Navy, or Toys “R” Us. MEXICO Mexico is becoming a huge online shopping e-commerce environment as residents are now finally trusting the use of Amazon as a platform to process their credit card payments and orders effectively. Other marketplaces like Facebook, Bonanza are making strides in ecommerce.
The growth should be dynamic the next 7 years for online shopping in Mexico especially in Mexico City. Oceania: Australia Many loyalty programs operate in Australia, ranging from retail chains, individual stores, hotels, car hire businesses, credit card schemes, besides others. The largest loyalty program is flybuys, established in 1994 and owned by Coles. It has more than 10 million cardholders in over 5.5 million Australian households. A consumer study of Australian loyalty programs in 2013 showed flybuys as easily the most popular program in Australia. Rival retailer Woolworths launched its Everyday Rewards fuel discount card nationally in 2009 and by August 2010 had 5.1 million cardholders, with 2.7 million linked to the Qantas Frequent Flyer program. Among other Australian retailers, the largest programs are Myer’s MYER one program, the Priceline Club Card, Amcal Club, Millers Retail Club, and the BB Retail Capital Pulse Rewards program. Pulse has more than a million members. All major Australian banks offer credit cards with reward programs. Many are linked directly to airline rewards programs such as the Qantas Frequent Flyer program or Virgin Australia’s Velocity Frequent Flyer program.
Alternatively, some banks and credit card companies have their own programs, with points being either redeemable or transferable to various airline rewards programs. New Zealand The largest loyalty program in New Zealand is Fly Buys. Other programs include the New Zealand Automobile Association AA Smartfuel programme and Countdownsupermarket’s Onecard. Kachingo was a short-lived “card free” programme.
Mobile Loyalty Programs Mobile online loyalty programs There has been a move away from traditional magnetic card, stamp, or prominent examples are Austrian based mobile-pocket established in 2009, the US-based Punchd (discontinemulation (HCE) and near field communication (NFC) technology for mobile applications, traditional contactless smart cards for prepaid and loyalty programs are emulated in a smartphone. Google Wallet adopted these technologies for mobile off-line payment.
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