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Many card marketers are confronted by the challenge of maintaining a loyalty programme that is likely to be expensive to upkeep, difficult to differentiate, and almost impossible to measure in terms of effectiveness. How does one measure effectiveness in the broader business context? Does it mean profit, retention, or simply a “basic requirement” or “hygiene factor” because every other card issuer today has a programme of sorts in place?This paper explores the changing role of loyalty programmes in the payment card industry and how we might re-think the ways in which we perceive ‘loyalty’ with respect to the relevance of a loyalty marketing programme.
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