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Memo Of Transmittal Essay

1116 words - 5 pages


The purpose of this memo is to provide the Management Team at Tech Garden with insight into the new customer loyalty program. This memo will explain why a customer loyalty program is desirable at Tech Garden. This memo will also provide successful customer loyalty program implementation techniques for Tech Garden. This memo will outline key company and customer benefits with the development and application of a customer loyalty program.

Why Development a Customer Loyalty Program

Loyalty programs are developed to create returning customers, thus reducing competition. A customer loyalty card provides identification, memory, and reward to customers. With the use of a points system, Tech Garden is encouraging customers to purchase more in order to gain points to redeem and receive a reward. By providing a reward or incentive to the customer, you would be creating a reason for the customer to make future purchases at Tech Garden. With the reward, customers would not consider other retailers as they would not gain the additional benefit with their purchase that they would at Tech Garden.

Successful Implementation Techniques

Referring to the attached article, Jason Bertellotti outlines five key elements to implementing a successful customer loyalty program. First, commitment to the customer loyalty program is key. In order to be successful Tech Garden must fully commit to inserting the customer loyalty program into the company’s culture and daily work routine. With the implementation of a “points” loyalty program, data collection is essential. Tech Garden must obtain a reliable and consistent system to record and monitor customer purchases and points in order to allow for customer’s to properly redeem points. Next, integration of CSI market data software is crucial in today’s society. Integrating customer feedback into daily routine allows for Tech Garden to improve customer satisfaction resulting in loyalty. Taking action to improve any negative feedback is essential. Tech Garden’s action plan should focus on communication with the customer in order to determine the cause of dissatisfaction and the steps to resolve it. Finally, accountability is important when it comes to customer loyalty. When negative feedback results, no single person should be held accountable for creating and resolving the problem. Rather the company as a whole, employees, managers, and executives working together to improve customer loyalty.
Benefits to Tech Garden

With the development of a customer loyalty program, Tech Garden will receive three main benefits:

• Customer information and patterns – With the use of a points system, customer purchases are recorded, Tech Garden can then record and monitor every customer purchase. This helps with inventory organization, item pricing, and promotional development.
• Higher average sales – With the incentive to collect and redeem points, customers will continuously return to Tech Garden for purchases, thus increasing...

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