One excellent way to cut through the inflated metrics is to have customers actually define their level of sat5isfaction with the programs at an experiential level using SERVQUAL or any other number of research methodologies and programs (Norton, Pine, 2009). It is also critically important to have the metrics of participation coordinated with the financial metrics to ensure a high level of accountability is achieved and auditability of results as well (Murthi, Steffes, Rasheed, 2011). Often the most vocal opponents of any customer loyalty program point to the lack of traceability back to sales results and program development leading to actual sales and profits (Murthi, Steffes, Rasheed, 2011). It is best to anchor these two attributes together and have complete transparency and authenticity about what is going on in the customer loyalty program to ensure its success (Norton, Pine, 2009).
Conclusion
Customer loyalty programs can significantly increase profitability of a company by sustaining and strengthening lifetime customer value (Ou, Shih, Chen, Wang, 2011). For Time-Warner the program must...
When all of these elements come together, Time Warner will be able to gain greater CLV and increased profitability as a result. Measuring these programs and marketing their results internally will also do much to alleviate the negative opinions within the company as well.
References
Bagchi, R., & Li, X.. (2011). Illusionary Progress in Loyalty Programs: Magnitudes, Reward Distances, and Step-Size Ambiguity. Journal of Consumer Research, 37(5), 888.
Murthi, B., Steffes, E., & Rasheed, A.. (2011). What price loyalty? A fresh look at loyalty programs in the credit card industry. Journal of Financial Services Marketing, 16(1), 5-13.
David W. Norton, & B. Joseph Pine II. (2009). Unique experiences: disruptive innovations offer customers more "time well spent." Strategy & Leadership, 37(6), 4-9.
Wei-Ming Ou, Chia-Mei Shih, Chin-Yuan Chen, & Kuo-Chang Wang. (2011). Relationships among customer loyalty programs, service…
