Mark Twain famously said “Reports of my death are greatly exaggerated”. So it is the case with loyalty cards. The recent announcement by the EU that there will be a cap on transaction charges made by credit and debit card issuers will not be the final chapter in the story of one of the most successful and powerful marketing mechanisms of all time. The most successful loyalty programmes reward customers with more of the brand they love. This is rarely about just discounts but nearly always about relevance, innovation and excitement. Payment card providers rarely understand this and Cashback programmes are a case in point – they will not be remembered fondly/ Bribing customers is not a long term strategy and does not deliver competitive differentiation.
Author Nigel Gatehouse, CEO