This article outlines a new approach to customer loyalty.
Appropriate Subject Area(s):
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):
- Ask the class if they belong to any loyalty programs: e.g., Tim Horton’s, Starbucks, The Bay etc. List them on the board.
- 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.
- Distribute the article for reading.
- 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.
- Have one person from each pair switch with one person from the other half of the class.
- Using a Venn diagram, have the new pairs compare the benefits and drawbacks for each retailers and consumers.
- 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.
- Students understand why consumers value loyalty programs.
- In groups of four, have students prepare a news release for a new fee-based loyalty program.