In recent years, loyalty schemes have changed the way retailers see their business. Retailers have recognised that the costs of retaining customers are significantly lower than the costs of acquisition and that the top 20% of customers account for 80% of sales, with the most loyal customers spending 30% to 50% more per transaction. However, expertise on customer loyalty is often divided between the marketing departments that have the requirement for the scheme and the IT departments that have the expertise.

The Logic Group can bridge this gap and provide the skills needed to create a solution with minimal effort on the client’s part. Managed Loyalty Services performs such functions as database management on behalf of clients, as well as a range of outsourced loyalty services, such as data analysis, marketing campaign management, consumer helplines and loyalty programme design. Around 200 million card transactions are currently processed by the company’s managed services. Loyalty card schemes are managed for over 25 million subscribers, with over five million subscriber communications per annum.

Combining the technical expertise to implement loyalty programmes with in-depth knowledge of consumer and market dynamics, the company can also advise on all aspects of launching and running schemes. In particular, the company’s loyalty specialists can assist with data analysis and campaign management.

Data can be captured from a number of environments, including terminals, EPoS applications and Internet sites, before being transmitted in batch or realtime mode to the company’s System for Loyalty Administration and Management (SLAM) database, run at the company’s secure data centre. Rather than having to develop or build new IT infrastructures, merchants can take advantage of existing infrastructure to roll out new systems quickly and easily, while the costs of administering in-house systems (for instance, ensuring that the data is current and that there are no duplicate entries) can be removed.