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Chapter

The type of loyalty programme

Chapter

The type of loyalty programme

DOI link for The type of loyalty programme

The type of loyalty programme book

The type of loyalty programme

DOI link for The type of loyalty programme

The type of loyalty programme book

ByStephan A Butscher
BookCustomer Loyalty Programmes and Clubs

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Edition 2nd Edition
First Published 2002
Imprint Routledge
Pages 3
eBook ISBN 9781315575629

ABSTRACT

In principle, there are two different types of customer loyalty programmes: limited and open. A limited loyalty programme cannot be joined by just anybody. Sometimes, the emotional base of a product is not strong enough to develop a limited loyalty programme around it. In order to focus on the main target groups, to limit financial involvement and risk, and to increase efficiency by being able to channel communication more effectively, a limited loyalty programme is to be recommended in most cases. Open loyalty programmes also address potential clients and clients of other brands in order to start a dialogue and bring them into contact with the company's own brand. For instance, business-to-business loyalty programmes do not target the end-user, but instead address intermediaries, professional users and businesses that use the product as a component in their own product. A distributor loyalty programme is set up by a manufacturer primarily to support its dealers and to improve the relationship with them.

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