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
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