Gartner Research

Retail Loyalty Programs Do Not Foster Customer Loyalty

Published: 25 August 2017

ID: G00338229

Analyst(s): Kelsie Marian

Summary

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

Analysis

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

Gartner Recommended Reading

©2020 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Become a client

Learn how to access this content as a Gartner client.