Magazines Archives - 2012 February

Customer loyalty programmes
Part 1: Good intention but poor execution: what works, what doesn’t?
Story 1 - One Viewpoint

Customer loyalty programmes in retailing have a long history dating back to the ’30s. Conceptually, they started out as schemes that rewarded repeat customers who had demonstrated loyal patronage of a store. Today, practically every retailer has a loyalty programme of some fashion. Unfortunately, many programmes are not really effective. The underlying problem appears to be one of having a good intention, but only fuzzy objectives and mediocre implementation to back it up. What are the key factors involved in driving an effective loyalty programme? In today‘s Asian retail markets, where competition is razor-sharp and consumers are highly discerning, what would actually work and what would not?

by Steven HL Goh

Steven HL Goh is the executive chairman of RETAIL ASIA. He is also CEO of The Business Company, a consulting firm advising multinational retailers on retail strategies and business development opportunities in the Asia-Pacific.

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