DEVELOP LOYALTY PROGRAMS: Frequency programs (FPs) are designed to reward customers who buy frequently and in substantial amounts.

They can help build long-term loyalty with high CLV customers, creating cross-selling opportunities in the process.

Pioneered by the airlines, hotels, and credit card companies, FPs now exist in many other industries.

Most super market and drug chains offer price club card that ,grant discount on certain items.
Typically, the first company to introduce an FB in an industry gains the most benefit ,especially if competitors are slow to respond.

After competitors react, FBs can become a financial burden to all the offer-in companies, but some companies are more efficient and creative in managing them.

Some FPs generate reward in a way that locks customers in and creates significant switching costs. FPs can also produce a psychological boost and a feeling of being special and elite that customers value.
Club membership programs attract and keep those customers responsible for the largest portion of business.

Clubs can be open to everyone who purchases a product or service or limited to an affinity group pr those those willing to pay a small fee.

Although opens clubs are good fo building a database-or snagging customers from competitors, limited membership is a more powerful long-term loyalty builder.

Fees and membership condition prevent those with only a fleeting interest in a company’s product from joining.
Apple encourages owners of its computers to form local Apple user groups. There are hundreds of groups, ranging in size from fewer than 30 members to more than 1,000.

The groups provide Apple owners with opportunities to learn more about their computers, share ideas, and get product discounts.

They sponsor special activities and events and perform community service. A visit to Apple’s web site will help a customer find a nearby user group.


The company may stubbly business customers with special equipment or computer links that help them manage orders, payroll, and inventory.

Customers are less or loyal-customer discounts. McKesson Corporation , a leading pharmaceutical wholesaler, invested million of dollars in EDI (Electronic Data Interchane ) capabilities to help its independent-pharmacy customers manage inventory, order-entry processes, and shelf space.

Another example is Millikan & Company, which provides proprietary software programs, marketing research, sales training, and sales leads to loyal customers.


Thanks to the Internet, companies are interested in collaborating with customers to create value through communities build around brands.

A brand community is a specialized community of consumers and employees whose identification and activities focus around the brand. three characteristics identify brand communities.

A ”consciousness of kind.” or a sense of felt connection to the brand, company, product, or other community members;

Shared rituals, stories, and traditions that help convey the meaning of the community; and

A shared morals responsibility or duty to both the community as a whole and individuals community members.

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