Abstract The use of a loyalty card can increase the revenue of a supermarket or chain stores through various means. It is also more cost-efficient to retain a loyal base of customers. At the same time loyalty schemes provide an advantage when it comes to inventory purposes. An indirect consequence is the ability to stock items that are in high demand and ensure availability all year round. There are problems associated with loyalty schemes but these are problems that can be solved if the management team handling the strategy is willing to make changes. Introduction In the 21 st century entrepreneurs are aware that conventional marketing strategies are obsolete. One of the recommendations made was the development of a loyalty scheme. An example is the issuance of loyalty card. However, it is imperative to learn more about the importance of a business model before a store can offer a loyalty card. The utilization of the correct business model leads to the creation of value for the customers. Furthermore, the correct business model helps businessmen determine the basis for the business venture. Finally, the use of the correct business model can lead to the creation of the appropriate financial components that will help sustain the business process. Radical changes in technology, rapid changes in the urbanization of key cities, as well as increasing number of companies working in the same area has resulted in the existence of numerous supermarkets and chain stores in a particular geographical area. These changes created significant developments especially among competitors. As a result business leaders had to adapt a new model of marketing. Entrepreneurs were introduced to the concept of relationship marketing. The core feature of this model was the need to attract and maintain loyal customers. One of the solutions was to “give customers an explicit incentive to be loyal to the store as opposed to the competitor’s store… it came to be known as customer relationship marketing or, more popularly loyalty” (Leonard, 2009, p.1). The need to identify and maintain a number of loyal customers is needed to assure sustainability in business especially in the retail industry. Data Collection It is imperative to point out the intricacies of the data collection method used for this particular study. The mode of data collection can help determine the veracity of the assertions made in this report. Thus, it must be made clear that there is only a single mode of data collection that was used and it is the secondary data collection method. The report may appear to be a case study of the UK retail industry but the data used was taken from secondary sources. Case studies made by other researchers were used for this report. One of the important contributions came from the study made on smart cards. Another important contribution came from a study made on discount cards. There was also a case study on trade store cards with a focus on bargains. The general pattern in all these case studies was to look into the effectiveness of loyalty schemes. An important aspect of these case studies focused on customer loyalty and relationship marketing. There was no company that was used as a focal point for this study. However, popular supermarket chains in the UK were mentioned in the report. The secondary data collection method was also utilised to gather da