This article focuses on loyalty programs and the implications for the customer when things change.
Appropriate Subject Area(s):
Entrepreneurship, marketing, branding
Key Questions to Explore:
- What value does a loyalty program bring to a brand?
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):
- Ask the class to define what a loyalty program is.
- By show of hands, ask students if they are members of any loyalty programs.
- In teams of four, have students brainstorm a list of loyalty programs they are aware of.
- Have each team select two of the loyalty programs on their list and look up the features.
- Have students prepare a chart outlining the benefits and costs of each loyalty program to both the company and the consumer.
- Distribute the article for reading.
- In their teams, have students discuss the value that Aeroplan brings to Air Canada.
- Have each team share the highlights of their discussion.
- 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?
- Students understand loyalty programs as well as the benefits and costs of implementing one.
- Have students research why Canadian consumers are such high users of loyalty programs.