Management Project

Cost of starting a loyalty program vary from project to project, ranging from 7000 to 150 000 euros, depending on the type of program – or a local coalition – the number of service points and other parameters. This amount includes the cost of the project development (consultancy or salary of their own employees) and software, but does not include the cost of equipment, maps (or other identifiers of participants) and marketing and promotional activities to launch the project. Loyalty programs are discounted, discounted cumulative, bonus and bonus catalog. "By failure I attribute all that tied to the rebates, – said Konstantin Harsky ("Value Management for Business"). – After some time, both sides – both clients and company – are disappointed in these programs. It's only a matter of time. For example, a known case when a chain of stores cosmetics launched a "loyalty program" in the form of complex discounts.

If the buyer has made large purchases, and often, the discount was larger. To calculate the discount given to the seller required to collect a check, enter data into a table Excel, which calculated the actual discount to a discount in the check, to knock out a check. In words, it seemed that the operation would take place quickly, but in fact turned out long lines and frustrated customers. As a result, the company came to the same percentage discounts, and on that calmed down, and then a chain of stores and shut down completely. " Low efficiency of discount programs due to lack of a clear attachment to the organization of the client: the client is sensitive to the discount, not loyal, and once competing organizations provide a great discount, it will go away.

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