Friday, September 3, 2010

Relevance based Loyalty

The traditional loyalty strategy is driven by all forms of incentive tactics. Loyalty points for this, buy one get something for free, click here and get … the list is endless.

Do these incentives really create the loyalty that truly connects the customer to the brand? Well it could be argued that it depends. It depends on what’s being sold, the frequency and volume of purchase and whether it is a service or product. This means that we have to have a way to measure the effectiveness of the program.

In order to design the measurement system we have to consider the potential variables. Including