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Recency

5x 4x Frequency or those of airlines and hotel chains. Such schemes are often used for e-CRM purposes as follows:

• Initial bonus points for sign-up to online services or initial registration;

• Points for customer development or extension - more points awarded to encourage second or third online purchase;

• Additional points to encourage reactivation of online services;

• Popular products are offered for a relatively low number of points to encourage repeat purchases.

If customers have lapsed in using online services, it is often necessary to contact them by direct mail or phone to make these offers.

As well as loyalty schemes operated by retailers and their partners, there are also some online-specific loyalty schemes which are operated independently. While early attempts at developing the online currency Beenz (www.beenz.com) failed, others such as iPoints (www.ipoints.co.uk) have survived. New ones are still being launched, for example, Pigs Back has worked well in Ireland and was launched in the UK in 2005 (www.pigsback.co.uk).

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