Frequency marketing has existed in one form or another for a long, long time... One of the early programs began in an A&P grocery store in New York City with trading stamps. Stamps were collected as rewards for purchases and redeemed for fun merchandise or gifts. It was a guilt-free way for families to shop for discretionary goods. People enjoyed the process of pasting the stamps in books, setting their goals, then attaining their rewards. And, of course, they kept going back (thus the frequency) again and again to the store that provided the stamps.

After the idea became successful, everybody put the program in place. Shortly after this all the grocery and gas station chains had trading stamps, and they became meaningless. Today, something similar is happening with frequent flier programs. Now that all the airlines have them, the competitive advantage is lost, and many airlines would like to drop them. There are also emerging "club" systems, s

Collect-and-win games are designed to operate over a short period to generate four or five repeat visits or product purchases. Participants qualify for prizes at various levels.

McDowell Edwin, "Rize Carlton's keys to to good survive", New York Times 1993

Costs will vary depending on the degree of sophistication of the technology, the level of the award, and how often you plan to refresh what you are doing.

Continuity premium programs are long-term customer loyalty programs that reward consumers with brand-logo merchandise or with premiums that can be associated with the product.

· Motivated, long-term employees learn how to reduce costs and improve quality, thus increasing customer value and improving productivity. The company can then use this productivity surplus to fund superior compensation and better tools and training--all of which reinforce the productivity, compensation growth, and loyalty of employees.

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