Loyalty schemes are designed to build brand credibility and a positive brand image, as well as to attract long-term customers who are rewarded for their purchases. The scheme usually runs for an extended period, and consumers can enjoy specific benefits depending on the value or frequency of their purchases. In this situation, both parties derive tangible benefits – businesses gain a regular customer, whilst programme participants receive discounts, bonuses or other types of special offers.
Organisation loyalty schemes is a process during which it is necessary to identify a number of variables that will determine the structure of the programme. These include, amongst others:
- Reasons for setting up a loyalty scheme
- Objectives of the loyalty scheme
- Target groups
- Duration of the programme
- Nature (type) of the loyalty scheme
- Tools for assessing outcomes and key performance indicators (KPIs)
Implementation of a loyalty scheme
Once all the above-mentioned elements have been finalised, it is possible to move on to the implementation phase of the loyalty programme. It is worth noting at this point that this process can take up to several months. However, it is essential to refine and adapt the programme in line with current, dynamic market conditions. Proper preparation and implementation should, in turn, lead to the consolidation of brand awareness and the building of lasting relationships with customers.
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