Customer loyalty has long been a goal for retailers and brands alike, both of whom have worked to develop unique programs and attractive offers for this goal. Despite the increase in these discount programs, research is now showing that customer loyalty is on the decline. Today, 96% of consumers would be tempted to switch loyalties to a competitor by a good price promotion.
Are loyalty programs really earning brands and retailers the type of loyalty they want? Should marketers and strategists reevaluate the meaning of “loyalty” and the role of these programs for brands and retailers?