Loyalty schemes can reasonably be expected to do several things for the companies that use them (Nunes and Dreze, 2006). Which of the following is not one of the benefits of loyalty schemes?

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Loyalty schemes are not designed to create competition, but rather to promote customer loyalty and increase sales from existing customers. Loyalty schemes can reasonably be expected to do several things for the companies that use them (Nunes and Dreze, 2006): keep customers from defecting, win a greater share of the wallet, prompt customers to make additional purchases, provide insight into customer behaviour and preferences, and create profit.

Loyalty Schemes Can Reasonably Be Expected to Do Several Things