But then you start to think a bit deeper. Increasingly if a business wants a loyalty program that probably means something is broke and they are looking for a mechanic to fix loyalty. For a few businesses loyalty programs (transactional based ones) are difficult to implement. Little control over the retail environment ... very infrequent purchase behaviour in the category ... big ticket, low margin. White goods would be an example.
We should look at loyalty differently, examine businesses in sectors with relatively high levels of loyalty and work out what they do well. My 'guess' is that they have good products, strong brands, good customer service processes and policies, customer focused culture. The trouble is it is easier to create a loyalty program than fix a business. Short-termism creeps in. But perhaps we should think about creating loyalty businesses not loyalty programs.
If Easyjet thought of themselves as a loyalty business that happened to sell flights how would they behave differently ?
Its quite a good question to pose to businesses.
I am off to look at our research now, there is 1000 page doc on my desk at work, to see what businesses with great bonding and loyalty scores do so well. But if anyone has a nice neat answer that will save me a lot of reading please let us know.