There is a lot of debate about loyalty programs – what can the experts agree on?
Despite all the many differences of opinion among academics, there are a number of observations regarding customer loyalty and reward programs that few experts (both critics and proponents) would deny. PR Loyalty Solutions has created a list of major assumptions and observations that are either explicitly stated, alluded to, or consistent with the arguments made in the majority of academic literature. Some of these include the following:– Past customer profitability does not guarantee future profitability – Customer loyalty is a rare commodity – Tracking customer value is important, challenging and achievable – IT and CRM tools help businesses know their customers – Loyalty program differentiation is challenging – Because of reward programs, customers today expect special offers – Coupons and discounting do not enhance loyalty – Few customers are completely loyal – Some customers will never be loyal – Loyalty comes from a variety of sources
(Copyright PR Loyalty Solutions, 2012)