This article outlines a new approach to customer loyalty.

Appropriate Subject Area(s):

Entrepreneurship, marketing

Key Questions to Explore:

• Why do consumers value loyalty programs?

Introduction to lesson and task:

Loyalty programs are common among larger retailers and service providers.  Amazon Prime has led the way with a fee-based loyalty program that has proven to be very successful. Other retailers are now looking to follow this lead.

Action (lesson plan and task):

1. Ask the class if they belong to any loyalty programs: e.g., Tim Horton’s, Starbucks, The Bay etc. List them on the board.
2. Using 1-2-All, have students jot down the benefits they receive from the loyalty program, share them with a partner, then with the class. Capture the benefits on the board or flip chart.
3. Distribute the article for reading.
4. Divide the class in half. Within each half, have students work in pairs to prepare a T-chart on the benefits and drawbacks of a fee-based loyalty program. One half of the class completes the T-based chart from the retailers’ perspective, the other half completes the T-based chart from the consumers’ perspective.
5. Have one person from each pair switch with one person from the other half of the class.
6. Using a Venn diagram, have the new pairs compare the benefits and drawbacks for each retailers and consumers.
7. Discuss what benefits and drawbacks they have in common.

Consolidation of Learning:

• Have students identify their favourite store and develop a loyalty program that the store should offer to attract and keep customers.

Success Criteria:

• Students understand why consumers value loyalty programs.

Confirming Activity:

• In groups of four, have students prepare a news release for a new fee-based loyalty program.