The guys at McKinsey has produced a short slide deck to explain some of the issues with loyalty.
I will summarise my (relatively knowledgeable) take on loyalty programs that fail as follows:
Loyalty is treated as something separate from the rest of the customer experience).
If you want loyalty succeed, then it must be treated as ONE PART of the and engagement cycle.
Of course as you can expect, here at Ganador we have sourced the PERFECT solution through a partnership with a leading technology provider. (One that GETS loyalty - AND the rest of the process.)
In fact I can safely say it is the only product that does what it does the way it does it.
For it to work you need a critical mass of customers. So realistically it is suited to only larger companies, associations, landlords, and franchisors etc.
Before you call me for a (no-obligation) demo - know that you will want to sign up. The good news is that there is no capex involved for you to own your own, white-label, fully integrated solution and the monthly cost could be as low as 50 bucks...