Event membership cshemes and whether thry promote customer loyalty Essay

Event membership cshemes and whether thry promote customer loyalty - Essay Example In many cases, the event is itself the product, such as cultural events and the like. The principle, however, is the same, that is, to trigger the curiosity of new customers as well as nurture a stronger relationship with the regular customers in order to court their loyalty. In trying to keep customers loyal, companies have come up with membership schemes by which a customer is â€Å"bound,† in a way, to keep coming back. By â€Å"bound† it is meant that the customer is given an incentive or reward for staying as a member and continuing to avail of the products and services of the company. In 2001, Hayes and Slater conducted a study of cultural organizations. Their aim was to arrive at a typology of the common-interest groups of people who have naturally gathered together and, after the passage of some time, became â€Å"clubs†, then â€Å"membership schemes†. (They are also known by other names like friends’ schemes, societies, and associations). The study of such typologies was considered by the authors to be useful to practitioners. It will help them in the design and evolution of membership schemes for many different purposes. This is especially for the hosting of events and exhibits, in order to make sure there is enough people in the audience. According to the authors, there are four general types of membership schemes: the friends’ scheme, the social club group, the public members’ scheme, and the integrated membership scheme. There are many factors that influence how membership schemes developed. The most important factor is the strong competition that grew between rival organizations, and a lessening of revenues available for funding. For these companies, management found out that the only way to ensure survival was by adopting an entrepreneurial style, which meant earning income in an