The Price of Loyalty: Incentives

Executive Snapshot

• Figure: Executive Snapshot: The Price of Loyalty — Incentives

Situation Overview

• Retailers Seek Consumer Loyalty

• Table: Sample of Select Retail Loyalty Programs

• Consumer Loyalty Offers Advantages to Retailers

• Direct Top- and Bottom-Line Impact

• Market Share

• Marketing Costs

• Marketing Alignment

• Loyalty Is Not Driven Through Serendipity

• Figure: Loyalty Is Driven

• Incentives Are Loyalty Drivers

• Figure: Incentives That Drive Loyalty

• Price Incentives

• Discount Price Incentives

• Markdown Price Incentives

• Service Value Incentives

• Status Incentives

• Convenience Incentives

• Loyalty Performance Is Business Performance

• Table: Key Loyalty Program Health Metrics

• Table: Key Loyalty Program Performance Metrics

• What Is the Price of Loyalty?

Advice for the Technology Buyer

• Match Loyalty Tools to Your Strategy

• Figure: Loyalty Tools — Market Fragmentation

• Attractiveness of the Program Needs to Be Long Term

• Ensure Your Program Is Working Through Metrics

Learn More

• Related Research

• Synopsis