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Showing posts from March, 2016

Loyalty Program? You Don’t Need No Stinking Loyalty Program

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Loyalty is a hot topic in many industries, especially the restaurant industry. Starbucks recently overhauled its loyalty program. McDonald's is reportedly about to roll one out. But if your company is considering launching a loyalty program, allow me to make the case that your time and effort are almost certainly better spent elsewhere.

What Is a Loyalty Program?
I'm defining "loyalty program" as a program that rewards customers with freebies for making purchases at a business. 20 years ago, this was often handled with a punch card: "Buy nine scoops of ice cream and get the tenth one free." Today, this is very often handled digitally.

The rise of digital loyalty programs has muddled the definition of a loyalty program. Free rewards are often mixed with other features like online ordering or mobile payment. If you take away only one thing from this post, let it be this:
When it comes to "digital loyalty programs," do not confuse the benefits of added …