I’ve always been somewhat sceptical about loyalty programmes. but this is mostly personal bias, as I am deliberately ‘disloyal’. Here is Accenture’s latest take on loyalty and loyalty programmes, based on some research that they have conducted. They have five recommendations (for U.S. firms):
- “Identify and shut down programmes that dilute margin.
- Leverage connections of existing customers to acquire new ones.
- Millennials are less swayed by loyalty programs. Understand what they like, and what types of promotions they will embrace.
- Customers that recommend brands to others are critical. Invest in strengthening this loyalty behavior.
- Capture, analyze and act on customer feedback across silos. Work with partners to share expenses associated with loyalty.”