Are retailer loyalty programs devolving from a competitive advantage to a hygiene factor? Recent insights from the digital marketplace Upside support that argument. The trends from their survey of around 2,000 consumers boil down to two words: proliferation and differentiation. The number of programs consumers join is increasing while the differences across programs are decreasing. But retailers can’t afford to eliminate the programs – around 40% of survey respondents said they would stop shopping at a location that eliminated its loyalty program. To reverse this trend, retailers will need to look beyond programs with points and discounts and find new ways to differentiate themselves.
Are retailer programs devolving into a hygiene factor?
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