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What are loyalty schemes?

A number of organisations participate in loyalty programmes which are designed to improve customer loyalty and increase sales. They also offer businesses with a marketing tool because they can analyse customer information in order to target marketing campaigns, etc. There are a number of different schemes in operation, but the main aim is to link purchases made to a reward or a reduction in the price paid for subsequent purchases by issuing points.

The loyalty scheme can either be a simple scheme where the reward is given by the original supplier when the customer has accumulated sufficient points to cover the purchase or part purchase or a more complex