The definition of “loyalty program” has evolved dramatically over the last 20 years. And digital media is again redefining what loyalty means and how it applies to business.
The very reason loyalty programs exist is actually very selfish. They are typically designed to change customer behaviour for the better of our business. But retailers sell these programs to customers in a very unselfish context… With the promise of rewards, programs are designed to encourage customers to behave in a very specific way - a way that will directly benefit the retailer.
Although this concept will probably never change, the tools retailers have to alter customer behaviour (including reward mechanisms) have broadened significantly, and with the evolution of online commerce in particular, what we have traditionally understood to be part of a loyalty program will continue to change.
Read the full article here.