Explanation should include how loyalty programs (e.g., points, discounts, free samples, exclusive events, free shipping, email alerts, coupons) are used in the fashion industry to retain and reward customers.
Process/Skill Questions:
- How do loyalty programs increase the sale of merchandise? What are the costs associated with loyalty programs?
- How do retailers determine who their loyal customers are?
- Why is customer retention so important?
- How are analytics used to target and retain customers?
- How is technology (e.g., apps, beacons) used to draw customers in and to interact with them while they are in the store?
- What are the benefits of loyalty programs to the consumer? To the fashion retailer?