The last decade has ushered in tremendous changes and challenges for businesses. Customers are more informed, they have more options, and they have higher expectations. What’s more, with increased choices and access, they have become more fickle.
The rapid proliferation of customer loyalty programs is a clear indication that retaining current customers has become a high priority. Loyalty programs, both explicit (customer opt-in) and impliciti, have burgeoned. These programs have sprung up in every consumer-related industry, from retail to restaurants, cruise lines to charge cards, with memberships in explicit programs topping 2.6 billion in the US in 2012.