Loyalty schemes are long-term initiatives that allow consumers to receive rewards for their purchases – based on how often they shop or the value of their purchases. These schemes are divided into two types:
- B2C (Business to Consumer) – aimed at end buyers (consumers);
- B2B (Business to Business) – aimed at commercial intermediaries, also referred to as incentive schemes.
Implementation of a loyalty scheme
In order to implement a loyalty scheme, it is necessary to: define a precise objective, analyse competitors’ activities, identify the preferences of future participants, calculate the incentive ratio, determine the legaland tax framework, develop or purchase a licence for an IT system, prepare and test promotional materials, sign contracts with reward suppliers, and organise the logistics of their distribution.
It is, of course, also essential to fund each of the stages listed above and then measure their efficiency and effectiveness. The next step is to draw up a risk management plan. The organisers of the campaign must also not forget to maintain ongoing, effective communication with participants. All of this can yield extremely satisfying results if organised properly and under the guidance of experienced specialists.
