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Loyalty schemes
A Loyalty scheme rewards customers who regularly buy goods from a company.

The rewards may be in the form of discount vouchers or credit points that can be used to buy goods.

Customers usually have to fill in forms when applying to join a loyalty scheme. These forms may be completed on paper or on-line.

 

Nectar cardSome schemes such as Nectar cards can be used in a number of different shops or e-commerce companies. Points are collected and can then be used to buy from a selection of goods.

Other schemes include...
Tesco Clubcard; W. H. Smith's Clubcard; Air Miles schemes; etc...

 
Advantages to the business :
  • customers are encouraged to return and spend - resulting in increased sales.
  • spending patterns and other information can be gathered to influence future marketing strategies.

 
Advantages to the customer:
  • the customer saves money through discounts
  • payment for goods may be simpler/speedier using a store card.
  • news of special offers