The rationale and structure of a loyalty
Date
2011-04-05
Authors
Ellingworth, Roland
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Abstract
The research conducted, aimed to identify the premise behind the implementation of a
loyalty programme within the Private Medical Insurance (PMI) space in the UK market
and how the programme may be structured. The researcher has been afforded a unique
opportunity to gain deep insight into the Vitality programme, through having direct
access to the organisation and executive management, as the researcher is an
employee of PruHealth.
The case study methodology was selected, as PruHealth is one of the only PMI
organisations within the UK market to have a programme such as the Vitality
programme accessible to their members. This type of research has allowed for semistructured
interviews to be conducted with the executive management of PruHealth to
extract the inherent knowledge of the programme. This has provided informative and
detailed information which has been analysed and structured to present in this report.
The findings yielded results to answer the problems stated within this report. The main
problem was to identify why a PMI organisation within the UK has implemented a loyalty
programme and how this is structured. The following sub-problems have also been
answered:
Identify the reasons for and potential benefits of a loyalty programme to a private
medical insurance provider in the UK.
Identify how the loyalty programme can be structured.
The reasons identified are to, drive the required behaviour and reduce the claims
expense. The structure of the programme is one of a points and status based model,
whereby members earn points for healthy behaviour activities and thus migrate through
the various status levels. The higher the members status the higher the rewards the
member can benefit from.
Detailed findings are provided within the research chapter of this report.
Description
MBA - WBS
Keywords
Loyalty programmes, Health insurance