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There are several case studies that demonstrate the effectiveness of customer loyalty programs. For instance, Starbucks' loyalty program, Starbucks Rewards, has been highly successful in increasing customer retention and spending. The program offers free drinks, food, and more when customers earn stars (points). Another example is Amazon Prime, a paid subscription service from Amazon that gives users access to services that would otherwise be unavailable, or cost extra, to the typical Amazon customer. This has significantly increased customer retention and spending on Amazon. Lastly, Sephora's Beauty Insider program offers points on purchases, free beauty classes, and access to a private beauty concierge line, which has led to increased customer loyalty and spending.
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PwC, an audit and assurance, consulting and tax services network helped chain of fast casual restaurants, Chipotle, to launch a new customer loyalty program. Although we are unable to see the original consulting proposal sent by PwC to Chipotle, we can learn a lot from the case study PwC published on its website.
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