Loyalty programmes that are really just discounts

Here is the test. Remove the programme tomorrow. Which customer behaviours change? If the answer is none, you are not running loyalty, you are running a permanent margin reduction with a database attached.

Good programmes change a specific behaviour. Frequency, basket, category spread, referral. One of them, deliberately chosen, measured against a control.

Most programmes change nothing and cost a great deal, which is a difficult conversation to have and usually the right one.

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