While the number of loyalty programs has increased, they can often actually destroy value for companies.
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Loyalty, Rewards & Engagement for Customers and Employees....Reward The World
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Loyalty, Rewards & Engagement for Customers and Employees....Reward The World
The latest news, information and trends on all things customer loyalty and acquisition, including strategies for engagement & retention Curated by the first club |
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Dreze warns that loyalty programs must carefully weigh the “price” of their rewards. A free trip every two or three years is not enough to keep a consumer engaged with the program. “That’s the problem with the small flyer. They never get to the point where they get the reward. That’s where all the partners can come in,” says Dreze. “The reward needs to come often enough so that there is reinforcement. At the same time, it can’t be too close. Then it wouldn’t be meaningful.”
the first club's insight:
Dreze warns that loyalty programs must carefully weigh the “price” of their rewards. A free trip every two or three years is not enough to keep a consumer engaged with the program. “That’s the problem with the small flyer. They never get to the point where they get the reward. That’s where all the partners can come in,” says Dreze. “The reward needs to come often enough so that there is reinforcement. At the same time, it can’t be too close. Then it wouldn’t be meaningful.”
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