In the world of customer loyalty a perfect storm is developing.
Together new competitors, changing customer expectations, and new technology are undermining the transaction-based rewards schemes we traditionally see in retail and are revealing these programs to be undifferentiated, underutilized loss-makers. Based on our profound experience in this space, we estimate that a typical loyalty scheme at a $10BN retailer may well be losing $27–60MM.
This article describes the three prongs of this threat and explains how to reposition your customer relationships so that, while benefiting both parties, they are centred around what the customer wants and needs.
