The product to be considered in this business plan (operations) is with respect to the delivery systems of Loyalty Cards. It is necessary that the operational business plan needs to consider the following aspects before considering the various ramifications of the product line and how it could genuinely benefit the manufacturers, sellers and buying consumers or users. The supply chain needs to consider the following steps in terms of ensuring not only complete customer satisfaction but also the building of loyalty and wider growing acceptability, among the customers who make up the clientele base of this product/service to consumers. Defining the broad organizational operating strategies, including the designing and operational aspects of the framework for its implementation. Considering the modus operandi of the scheme in terms of availability of the literature and the schemes under this scheme to the valued customers. Launching of the scheme in consonance with corporate policies and objectives considering the aspects of 4 V’s- volume, variety, variation and visibility of this loyalty card. Significance of 4V‘s in this Business Scheme: The different aspects of the 4V‘s of business that is, volume, variety, variation, and visibility form the core of any business enterprise. (Operations Management Study Guide. 2008).
It is seen that in the case of loyalty cards, the range of products/services that could be benefited by loyalty cards would be high since booksellers, DVD stores, supermarkets, etc., and almost all consumer products shopping centers in malls or local stores could benefit from the use of loyalty cards.
Next, in terms of variety, it could cater to wider coverage in terms of a wide range of product lines as “Smart cards enhance the productivity of transactions and nourish increased purchasing.”
The variation with respect to loyalty cards would depend upon the demand generated for each variety of cards, depending upon customer preferences for them. Again, the visibility aspect would also need to be built since high visibility is a must in order to attract and retain customers to collect percentage points, or get discounts. The company must develop the ability to manage the results of the customers’ perception, about the benefits achieved from continuous usage of loyalty cards and the virtues of holding and utilizing this card must be extolled to the customers. This is an important question from point of view of the marketing of loyalty cards since the use of this card would significantly reduce the profits margins between 5% to 20%, by most conservative estimates. However, it is estimated that there would be definitely be enhanced turnover, due to the use of cards over a period of time that could yield higher profits due to the induction of new customers through loyalty cards scheme.
It has been found that this scheme is more attractive to a new customer than to existing ones.