77% of programmes that focus on rewards alone fail in 24 months There is a lot of talk about loyalty programmes and the success that large businesses in Australia, such as Coles and Woolworths, have had with their loyalty programmes. There is no doubt that many loyalty programmes do work, but one study found that […]

77% of programmes that focus on rewards alone fail in 24 months There is a lot of talk about loyalty programmes and the success that large businesses in Australia, such as Coles and Woolworths, have had with their loyalty programmes. There is no doubt that many loyalty programmes do work, but one study found that 77% that rely on rewards alone fail.Other studies found that: 80% of people have a primary department store, but only 30% participated in that store’s reward programme, and only 23% were activated The average American consumer has 22 loyalty cards, only 10 of which they report having used once in the last 12 months Businesses that spend more on loyalty programmes have, on average, a 10% lower EBITDA than businesses who spend less on loyalty programmes There is a lot of data that questions the success of loyalty programmes. Key issues include: Excessively high costs…