Summary

This article focuses on loyalty programs and the implications for the customer when things change.

Getting Started

Appropriate Subject Area(s):

Entrepreneurship, marketing, branding

Key Questions to Explore:

  • What value does a loyalty program bring to a brand?
Learning Activity

Introduction to lesson and task:

This lesson will explore loyalty programs and  the value they bring to an organization and its customers.

Action (lesson plan and task):

  1. Ask the class to define what a loyalty program is.
  2. By show of hands, ask students if they are members of any loyalty programs.
  3. In teams of four, have students brainstorm a list of loyalty programs they are aware of.
  4. Have each team select two of the loyalty programs on their list and look up the features.
  5. Have students prepare a chart outlining the benefits and costs of each loyalty program to both the company and the consumer.
  6. Distribute the article for reading.
  7. In their teams, have students discuss the value that Aeroplan brings to Air Canada.
  8. Have each team share the highlights of their discussion.
  9. Ask them whether they think the loyalty programs they brainstormed share Aeroplan’s characteristics.

Consolidation of Learning:

  • Have students write a one minute paper answering the question: Why do companies develop loyalty programs when they have a significant cost to the company?
Success

Success Criteria:

  • Students understand loyalty programs as well as the benefits and costs of implementing one.

Confirming Activity:

  • Have students research why Canadian consumers are such high users of loyalty programs.