Leveraging the Loyalty Margin: Rewards Programs That Work

Leveraging the Loyalty Margin: Rewards Programs That Work

          
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Leveraging the Loyalty Margin: Rewards Programs That Work

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  • A Company's Best Friend

    “I’ll take 50 percent efficiency to get 100 percent loyalty,” the Hollywood legend Samuel Goldwyn said. More and more companies are happy to make the same trade, but they don’t have to sacrifice efficiency. As their programs proliferate, however, they will eventually become as intensely competitive as the businesses behind them. Companies embarking on their first loyalty programs—or relaunching their third—would do well to bear three fundamentals in mind: the best programs are tightly integrated with broader brand and marketing strategies; a program’s economic value depends on increasing the loyalty margin and the incremental share; and loyalty programs can complement the brand experience, but they cannot substitute for it. The companies that follow these precepts will turn their programs into true competitive advantages. They will also find their loyalty programs and their bottom lines richly rewarded.