Is your “3% cashback” program driving a measurable increase in customer lifetime value? Cashback loyalty programs work in some scenarios, but in many cases retailers end up giving away margin to already loyal customers.
Unless you have churn in the top quartile of your customer file, the objectives of your loyalty program should be to get one time buyers to make the second purchase, and average customers to become high value (top quartile) customers.
A well-designed loyalty....