There are various ideas and definitions of loyalty programs, which are described in many ways. In the sense we use the term loyalty program is a kind of long-term marketing (Brand or company) and sales activity effects to building relationships (and smetimes sales effects) and maintaining long-term relations with customers.
This kind of programs can (mostly) relate to two types of relationships:
- Between companies (organizations), ie. B2B
- Between the company (eg. a network of stores) and final customers, ie. B2C
Loyalty programs in details usually are "tailor-made" for the customer and can have different degrees of complexity of handling the whole Project. It seems that (at least for B2C), when the program is as easy as its possibile customer - the better for the customer. Moreover, the loyalty program may (except the function of building relationships and brand awareness) also generate income at a good level. Today, this type of marketing is cheap for company, and with the right product selection system (Niven to customers as prizes, discount sales, bonuses, etc.) can bring additional, significantprofits. At the same time there are possibile actions related to monitoring reactions of customers, their preferences, behaviors, which (in the future) can bring an added value to the level of customer service.