Target Market for Points.com- One card - Research Paper Example

Target market for points.com Task: Target market for points.com Point cards provide entities with a means to retain their clientele also regarded as “customer locking”. This is because the cards enable clients to benefit from purchasing services or commodities from certain entities. Point cards contain credit earned for transacting with an entity or being a loyal customer (patron pal, 2009). Higher clientele activity results in additional credit. Notably, uses of point card seek to benefit maximally from the loyalty programs (Insync Solutions ltd, 2011).

The loyalty program entails distance rewards by airlines, supermarket purchases and medical cards. The above represent loyalty programs that grant purchasers additional value. Evidently, point credit assists customer to obtain addition value from the organizations (Marketing donut, 2011). Understanding the market and consumer prospects of Point.com will require an initial analysis of what the organization entails. Point.Com fundamentally seeks to consolidate mileage allowance of its clientele.

Therefore, an individual seeking to benefit from the service of this organization requires to launch an account with the organization. Evidently, the organization target individuals that receive mileage rewards. Consequently, this organization endeavour to consolidate the different mileage that their clientele receive. Additionally, the entity target individual with inability to track their rewards. Therefore, Point.com manages its clientele’s rewards. Additionally, ensuring that the clientele accomplish elite status consequently, earning better rewards. Point.com also converts rewards to point and finally to monetary value, which the customer can cash.

Notably, Point.coms’ clientele pay certain charges for the management of their accounts with the organization and conversion of the rewards and mileage (Uncles & Dowling, 1997).Point.com has a specific target market, which is constituted by the clientele of airlines and hotels. It is exigent to estimate the target market since it encompasses clientele of the service industry firms. However, accomplishment of Point.com’s objective to dominate the market depends on its capacity to manage the clientele’s rewards.

Ultimately, the firm has the compulsory resources to dominate the loyalty management sector since it is not capital intensive. Acquiring a substantial market proportion will require considerable time duration since the industry is expanding gradually. Additionally, the entity does not possess a robust marketing program. The above smart analysis reveals that Point.com has a specific target market whose evaluation is difficult. Point.com has the capacity to dictate the market. However, the realization of the purpose will require sizeable time (Points International ltd, 2011).

Certainly, Point.com target individuals who often receive mileage allowances and other rewards. These include individuals who fly frequently and visit certain hotels. Point.com manages the reward issued by American Airlines AAdvantage, Membership Rewards Airmiles and US Airways (Winship, 2011). However, the above organizations only denote a few of the organization, which trade with Point.com. Notably, the organization fundamentally targets clientele in the service industry, which seemingly offers more rewards.

The two core service industries that the entity targets include airline and hotel industries (Mullin & Cummins, 2010). Therefore, Point.com targets clientele of the above industries. This market demands management of the mileage and rewards earned. Additionally, it requires the capability to convert the rewards and mileage into monetary value. Ultimately, most customers wish to accomplish elite reward status that would ensure that the client earns more benefits. The service industry firms have sought to retain their clientele by tendering gifts for mileage.

This is a trend as competition in the service industry become stiffer with entities offering exceptionally competitive products (Oliver, 2009). This has resulted an opening for Point.com, which seeks to manage such benefits. The airline customers represent a core market segment for Point.com. Point.com oversees many loyalty programs setup by airlines. This segment constitutes the majority of Point.com’s clientele (Points International ltd, 2011). Ascertaining the number of clientele is challenging.

However, majority of the clientele are youthful and middle aged individual who are chiefly in the middle-income earners. The airline clientele represents an informed segment of the customer, which seeks to maximize the benefit of utilizing the services of certain airline (Rainardi, 2007).Point.com chiefly serves clientele of the service industry, which offer their clientele rewards and mileage. This organization helps such clients to manage their benefits and convert them to monetary value. Subsequently, Point.

com earns revenue by charging certain amounts on its clientele’s balances.ReferencesAbout loyalty schemes. (2010). Are Loyalty Schemes Really Worth it. Retrieved from http://www.aboutloyaltyschemes.co.uk/are-loyalty-schemes-really-worth-it.htmlDowling, G & Uncles, M. (1997). Do Customer Loyalty Programs Really Work? Retrieved from http://royalloyalties.com/Case_Study.pdfInsync Solutions. (2011). Customer Loyalty Management System. Retrieved fromhttp://islkenya.com/Products/LoyaltyManagement.

aspxMarketing donut. (2011). Customer loyalty schemes. Retrieved from http://www.marketingdonut.co.uk/marketing/customer-care/building-customer-loyaltyMullin, R. & Cummin, J. (2010). Sales Promotion: How to Create, Implement and Integrate Campaigns that Really Work. New York, NY: Springer.Oliver, R. (2009). Satisfaction: A Behavioral Perspective on the Consumer. New York, NY: M.E. Sharpe.Patron pal. (2009). what are Loyalty Card Programs? Retrieved from http://www.patronpal.com/loyalty-card-benefits.

htmlPoints International ltd. (2011). What is point.com. Retrieved from https://www.points.com/pdccontent/whatispoints.htmlRainardi, V. (2007). Building a data warehouse with examples in SQL Server. New York, NY: Springer.Winship, T. (2011). Point.com: Mile exchange made easier. Retrieved from http://www.smartertravel.com/travel-advice/Points-Mile-exchange-made.html?id=13839