Theoretically, loyalty programs are supposed to motivate customers to be loyal. But does it always turn out that way? Evidence is mounting that points to the fact that loyalty programs condition customers to expect discounts, and they don’t always cultivate loyalty. And the danger with that discount-driven scenario is that:
The loyalty program becomes only as good as the next discount.
Recent estimates by Colloquy are that there are over 2.6 billion loyalty program memberships in the....