Question

Spring Supermarket gives its customers VIC (very important customer) cards, which give customers additional discounts on certain products and notifications of special, customer-only sales. In addition, customers can accrue points each time they present their cards while making a purchase. These points can be used to purchase cookware, dishes, and other similar hard goods. Spring Supermarket is using a:
A. bonus program.
B. loyalty program. Correct
C. customer rewards contest.
D. self-liquidating promotion.
E. subsidized program.

Answer 1

Answer:

B. loyalty program.

Explanation:

Loyalty program: It is a marketing strategy used by the retailer to retain customers and encourage the customer to make more purchases, this program also helps in attracting new customers. Benefits in this program are the rewards to loyal customers. There are different types of customer loyalty programs been launched by different companies. There are points been distributed to customers for every purchase they make and they can redeem those points on their next purchase. It is important in a loyalty program to keep rules simple for points redemption for the customer.

In the given case, Spring supermarket is giving customer VIC cards, which is helpful in getting discounts, points for each purchase and information to the loyal customer. Therefore, the supermarket is using the loyalty program.