Loyalty programmes, which are common in the airline and credit card industries, are continuity programmes. The limitation of these programmes is the dominant presence of transaction-orientation. A typical relationship programme should not be dependent on sheer transactional value. Firms should also have appropriate segments based on customer yield, which essentially point to profitability aspects.
The best form of such loyalty programmes should combine transactional elements with information about the category and about the specific needs of the consumers. Hence, a combination of transactional orientation and one-to-one orientation (not only in terms of price but also in terms of specialised and customised needs) is likely to be effective in seeking and keeping customers.
Frequency marketing programmes and interactive programmes could be focused on specific segments depending on the response of consumers over a period of time.
A prerequisite for CRM, especially in consumer products, is the availability of information on demographics, psychographics and spending patterns.
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