This article outlines the results of a research study on loyalty programs.

Getting Started

Appropriate Subject Area(s):

Entrepreneurship, business management, marketing

Key Questions to Explore:

  • What is the value in a loyalty program from a customer perspective?
Study and Discussion Activity

Introduction to lesson and task:

This lesson explores the benefits of loyalty programs from a business and customer perspective.

Action (lesson plan and task):

  1. Ask students what a loyalty program is.
  2. Survey the class to see how many students belong to a loyalty program. List on the board which loyalty programs students belong to. Ask students to share their reasons for belonging. Capture the reasons on the board.
  3. Distribute the article for reading.
  4. Discuss the various percentage results from the survey.
  5. In groups of four, ask students to brainstorm what offers and discounts consumers might be looking for from a loyalty program.
  6. What data do students think consumers are willing to share in exchange for the offers and discounts?
  7. In the survey, only 8% of Canadians felt they received value for the information they shared.  Why do you think this is so?
  8. What value do the students receive from the loyalty programs they belong to? Go back to the list on the board and look at value against the reasons they belong to a program.

Consolidation of Learning:

  • Have students debate: Be it resolved that loyalty programs should be banned.
Success and Additional Learning

Success Criteria:

  • Students understand the benefits and drawbacks of belonging to a loyalty program.

Confirming Activity:

  • In groups of four, have students design a loyalty program for an on-line retailer that would appeal to their demographic.  Using a ‘walk about’ strategy, ask students to present their loyalty concept to the class.