the course in Marketing of Financial Services

Question (1): Based on what you have learned about relationship marketing strategies, read the following case study and answer the questions at the end.

(4 marks)

Reward scheme

Britannia is the only building society to share its profits directly with its customers. The societys unique membership reward is an example of how they are promoting their message of building a fairer society. Each year they reward their members for their loyalty with a share of the profits. As a building society, they do not have shareholders but instead customers are members of the society. Over the last 12 years, the society has shared more than 500 million with its members, with individual members enjoying a reward of up to 500 a year.

When a customer takes out a mortgage or opens a qualifying savings account with the society as with any building society- they become a member and therefore eligible to earn the societys unique membership reward. Once an individual has been a member for two years, they can start to earn reward points on every qualifying Britannia product they have. Products of Britannia: Current accounts- Savings- Loans- Credit cards -Mortgages- Insurance.

Questions:

1- What is the key term that the previous case is discussing? Explain at length with evidence from the case

2- From your point of view, evaluate this reward scheme program.