Case Study Title : retention programme




Background Information :


A large international rental-car company decides to develop a retention programme that would provide incentives for its heavy users to continue their loyalty to the company.

You, as a consultant, are asked to design a retention programme that will accomplish this purpose.




Theoretical Concepts Used


  1. ^ award points which could be transferred into monetary credits
  2. ^ use direct mail





Solution :

1. first the company needs to perform a marketing research targeting the population of heavy users of the car rental service.
2. the objective of the marketing research is to try to understand what they value most of the company current service offering
3. second objective is to try to identify the additional requirements of the users which will improve their level of satisfaction and will transform the business in their default choice in terms of cars leasing ;
4. the design of the research programme will cover issues like : target population ( start the heavy users of the services but do not ignore the potential future users), the research approach used ( a combination of focus groups with some heavy users plus qualitative research on the potential customers followed by the results validation through quantitative research)
5. the findings of the research will have to be communicated to the management of the business and some actions points will be included in the marketing programme;



Review Points


The objective of a retention programme for a car rental company should be to offer a

    • direct incentive to customers for heavy usage

    • which will encourage repeat business.

Probably the most successful type of programme would be similar to the airlines’ frequent flyer programmes – indeed, one can use them by

  • transferring car rental revenues into mileage awards with a given airline.


In a similar fashion, the car rental firm could set up its own programme and [1] award points which could be transferred into monetary credits to be used to rent the company’s cars.

The company could also identify its heavy users by geographical location or season of the year, and then [2] use direct mail to offer discount or trade-up coupons which are good for use during a restricted time period on certain types of company cars.

The value of the discounted coupon would depend on the extent of usage.



Links





Tag Cloud



  1. client contact systems
  2. collector bias
  3. competitive advantage
  4. competitive intelligence
  5. computerised reorder system
  6. consumer behaviour
  7. data sources
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  9. experienced user
  10. internal records
  11. just in time
  12. logistical alliance
  13. market potential
  14. market segmentation
  15. market segments
  16. marketing program
  17. marketing research
  18. mass market
  19. mass market strategy
  20. michelin; us west;
  21. micro segmentation
  22. middleman
  23. modified rebuy
  24. multi-functional sales teams
  25. multilevel selling
  26. multiple buying
  27. multiple level relationships
  28. mutual trust
  29. narrow market segment
  30. narrow niche
  31. nationalisation of producers
  32. nerve center
  33. new task buy
  34. nine west group
  35. observation;direct observation' tanzania mobile;
  36. on-time delivery
  37. opportunity; research
  38. order handling
  39. organisation market
  40. organization marketing behaviour
  41. organizational behaviour
  42. organizational customers
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  45. organizational purchasing behaviour
  46. organizational purchasing process
  47. paperless exchange
  48. parity pricing
  49. personal selling
  50. personal use
  51. political risk
  52. potential market; penetrated market
  53. pre-delivery inspection
  54. pre-sale service
  55. prestige buyer
  56. pretender
  57. primary data
  58. procurement costs
  59. purchasing criteria
  60. qualitative data
  61. qualitative research
  62. quality assurance
  63. quality standards
  64. quantitative data
  65. quantitative research
  66. research objectives
  67. retention programme
  68. routine purchase
  69. sales forecast
  70. semantic differentiation scale
  71. sequence of information
  72. shared costs
  73. short term contracts
  74. social construction
  75. status oriented consumers
  76. stock availability
  77. straight rebuy
  78. supplier bargaining power
  79. supplier performance
  80. supplier reputation
  81. survey
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  83. tanzania mobile
  84. target customers
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  87. technical experts;
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  89. transaction cost
  90. trend forecasting
  91. trusting patron
  92. underlying consumer demand
  93. unethical demands
  94. unstated but implicit assumptions
  95. users
  96. value analysis
  97. value shopper
  98. vertical integration
  99. visceral thing that cannot be trained
  100. wild guess