Discuss the role that loyalty programmes play



The retail landscape has undergone a lot of changes in the last 15 years in Mauritius. The mauritian brand “Super U” was faced with various challenges: new competitors, customers with multiple credit cards, mounting price competition, all kinds of loyalty schemes and declining loyalty. Super U needed to react to this changing environment. In response, the shop embarked upon a program of smarter customer acquisition and retention and service improvement together with strategic cost reduction in its processes and a totally improved product at its augmented level

The program required the redesign of the customer service processes and organization model including resizing, a new management structure and a fundamental change program undertaken over two years that is itself part of a longer -term strategy geared for revenue growth on a recalibrated cost based and a robust infrastructure to support the online processes

At Super U, the internet now provides customers, major accounts and global accounts access to information, ordering capability and support services. It enables-

• On line information requests (responding to questions and request for information immediately)
• Catalogs viewing (the ability to access color catalogs and spec sheets while on-line)
• Price quotation
• Provision of payment
• Provision of order status and fulfillment information
• Completion of surveys/questionnaires
• Customer e-mail feedback
• Resellers and channel partners access to information, on-line ordering and support services

The benefits to the customer are clear: sales support for customers; information available 24 hours a day, seven days a week (24×7); real-time order taking and order status; and a cost-effective customer feedback channel

a) Discuss the role that Loyalty Programmes play in customer relationship development

b) Using extensive theories, critically discuss the effectiveness of loyalty schemes in building customer loyalty in customer relationship programmes at Super U

c) Discuss the challenges that Super U may have had to face in delivering e-CRM to its customers

d) Using the criteria that customers use to evaluate a company’s channel, discuss how far Super U has been able to fulfill the needs and expectations of its customers


CEOs admit that more money, time, and organisational changes will be required to make the needed transition from product or channel driven structures and tactics to an enterprise wide growth strategy that is truly customer centric. Most competitive customer acquisition and management involves much more than just data mining
Making extensive reference to theories, illustrate the developmental stages of customer acquisition and management processes for creating a customer centric enterprise


I don’t believe we can achieve solid, genuine customer relationships on the basis of installing CRM systems. CRM technology, as with all technology, is a tool, an enabler. I believe that CRM and similar technologies are valuable if used within the context of a customer relationship strategy

Discuss how far you agree or disagree with the statement made above


Using, as basis, the article “The Right way to manage Unprofitable Customers” by Mittal, Darkees and Murshed (Year 2007), answer the following questions-

a) Divesting the unprofitable customers may seem the easy alternative. Explain why this strategy may not be totally advantageous to the organization?

b) To avoid the dangers of not just dumping customers the instant they become difficult, discuss the five steps process recommended by the above authors to manage unprofitable customers

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