Gartner Research

Retail Loyalty Programs Do Not Foster Customer Loyalty

Published: 25 August 2017

ID: G00338229

Analyst(s): Kelsie Marian


Most loyalty programs fail to achieve the goal of sustainable customer engagement and loyalty. This research explains why and offers guidance for CIOs to assess and advance customer loyalty strategies and technologies in light of digital business advancements.

Table Of Contents
  • Impacts


Impacts and Recommendations

  • Retailers' failure to execute effectively and efficiently on customer basics, particularly in the store, is a key gating factor on loyalty programs
  • Retailers' functional silos create multiple forms of communications that confuse customers and lead to loss of loyalty
  • Complex loyalty programs result in nonuse of offers by customers, hindering retailers' ability to build loyalty

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