Is Your Loyalty Program a Waste?

Ann-Marie Vazzano

Many companies are wasting money on loyalty programs that don’t work, according to Accenture Strategy’s “Seeing Beyond the Loyalty Illusion” report. The report found many loyalty points aren’t redeemed and 57% of shoppers spend more at stores where they’re loyalty members. In addition, 36% of consumers say loyalty doesn’t factor into their spending at all. Nearly a quarter of respondents (23%) said they actually have a negative or non-existent reaction to organizations’ loyalty efforts. On the plus side, though, 55% of U.S. consumers recommend companies to which they’re loyal. GP