Is Your Company Loyalty Program Worth It?

Discussion in 'LoyaltyMatch' started by @LoyaltyMatch, Jul 7, 2014.  |  Print Topic

  1. Harvey Schachter of the Globe and Mail newspaper writes "Is your company loyalty program worth it?" His article source, Dylan Bolden of Boston Consulting Group argues yes, "loyalty programs can create tremendous value for a company." He discusses three levers that can be applied to dramatically improve your loyalty program. The three levers are: 1) Earn and Burn- The customer has a fairly good idea of what he or she is gaining; 2) Recognition-In this approach the company segments its customers and delivers a higher percentage of the value they wish to distribute to top spenders, focusing on the ones they most need to retain; 3) CRM-This approach uses purchase data captured via membership cards to prepare special offers tailored to the card-holder’s interests.

    “Loyalty programs are here to stay. They can create tremendous value for a company. But proceed carefully,” Mr. Bolden said. Source: The Globe and Mail

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