Analysis: Loyalty programs are "triple win marketing activities"

02/24/2014 | HBS Working Knowledge

Many retailers, especially those in low-margin businesses, are still uncertain about whether loyalty programs "offer a sustainable and profitable business model," Marcel Corstjens and Rajiv Lal write. But most of their concerns are disprovable "myths," they write. "Overall, retailer-initiated loyalty systems are truly triple win marketing activities." The programs benefit retailers, brand-owning suppliers, and shoppers and consumers, they add.

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