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Customer loyalty programs were a novelty in the late 1970s. American Airlines broke ground in loyalty marketing by introducing the Advantage Frequent Flyer program. Most loyalty programs have not changed very much since that time. Until a few years ago, loyalty programs remained the same for the most part, existing to increase share of wallet by enabling best customers to earn points and redeem for rewards.
More recently, a few brands began to ride the wave of advancing technology and the advent of big data to identify and segment customers. Others have leveraged social media to award points for brand-related member actions, as well as enabling customers to order and engage with the brand on mobile devices. The awesome marketing opportunities and formidable challenges of leveraging these tools are staggering. Regardless of the size and reputation of their brand, marketers are continually looking for ways to differentiate the company by staying at the top of their game when it comes to customer loyalty.