Hardly a day goes by when you don’t visit a store, restaurant or supermarket and have an employee ask, “Do you belong to our loyalty program?” Loyalty (or rewards) programs have become ubiquitous. A fact of life in American business. Accordingly, it is helpful to ask what the role of a loyalty program should be in a company’s marketing and customer relationship management efforts.
We can define customer loyalty as a trust-based relationship between a company and the customers it serves. This relationship is developed by consistently executing the company’s value proposition for its customers over time.