Loyalty programs are everywhere, from coffee shops to airlines. Behind them sits a straightforward calculation: do the rewards generate more profitable behaviour than they cost?
What programs aim to change
The goal is higher visit frequency, larger baskets and customers who choose the brand over competitors.
The hidden value of data
Programs give retailers detailed insight into purchasing patterns, informing pricing and inventory decisions.
Measuring success
Compare the behaviour of members with similar non-members, not with customers overall.
Key takeaways
- What programs aim to change
- The hidden value of data
- Measuring success
