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The new era of loyalty


The future of loyalty requires an


omnichannel approach - not just to the rewards programme itself, but to every customer interaction.


By Marlon Bowser


chief executive of HTK www.htk.co.uk


L


oyalty programmes have been around for centuries - and they aren’t going anywhere soon, with business spending on programmes and consumer membership on the rise. But the traditional, card-based approach


is quickly losing relevance. Only 44% of customers say they’re satisfi ed with their loyalty programme, and active membership is low. It’s no surprise then that 77% of transactional loyalty programmes fail in the fi rst two years.


TRADITIONAL LOYALTY IS BROKEN Part of the problem is that brands have relied too heavily on discount-focused schemes. These encourage price-conscious behaviour, such as shopping only when there’s a coupon available or switching brands to get the best price. And in the current retail environment, these kinds


of discount-seeking shopping habits are becoming increasingly common. But this is hardly sustainable, and retailers are fi nding continuous price-cutting is hitting


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