Best Buy Stores can initiate a loyalty card based program which is linked to a credit facility provided to the customers. The company will have to form affiliations and a contract with credit providing companies for launching this product. The benefit of this loyalty program would be that the customers would be able to buy the products that they want by simply using Best Buy loyalty card for the payment of their purchases while simultaneously reaping benefits in terms of discounts (5-15 %), giveaways, entry into lucky draws, and surprise gifts.
“The economic benefits of high customer loyalty are measurable. When a company consistently delivers superior value and wins customer loyalty, market share and revenues go up, and the cost of acquiring new customers goes down.” (Reichheld, 1993) Therefore due to the incentives and the benefits provided to the customers in the form of value added services, the customers of Best Buy would be willing to stay loyal to the company while increasing their purchases simultaneously. Moreover the customer base for the company in the marketing terms of its competitors will also increase and strengthen.
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