ABSTRACT
The loyalty programme fee should be set according to the financial situation of the target group. The joining fee has the advantage of being justifiable as representing the cost of processing the application, producing the membership card and sending out the welcome package, while keeping to a minimum the financial commitment the interested customers have to make. A customer loyalty programme is also a strategic necessity because it can generate the right quality and quantity of data that turns a database into the strategic weapon that it should be. A good way to reduce the cost of a customer loyalty programme is to limit the membership to a specific number of members. When contemplating establishing a customer loyalty programme, do not be deluded into thinking that a low-budget programme will work and reach its goals. All the cost and income information should be collected in a budget spreadsheet, similar to a balance sheet.
