Customer loyalty is one of the key drivers of long-time retailer success. As a result, retailers have greatly expanded their loyalty programs to further incentivize repeat business, as the following chart shows.

Nonetheless, sustaining customer loyalty is not an easy feat. As reported by Facts, Figures & the Future: “Being on the key ring is no guarantee a retailer will develop a meaningful relationship with loyalty club cardholders. New data show how badly supermarkets and other businesses fail to offer the experiences and discounts different shopper segments want from their loyalty programs. Nearly half of card-carrying members (47%) have stopped participating in one or more programs this past year—they simply disengage rather than formally request to leave, notes the first annual Maritz Loyalty Report. ‘Given the high percentage of passive defection, it is paramount that loyalty marketers proactively identify the early warning signs of disengaged members,’ urges Scott Robinson, senior director of loyalty consulting for Maritz Loyalty Marketing.” We believe “these findings should compel retailers to make shopping all of these things — easier, more convenient, information-rich (how to eat healthier, how to save), and competitively priced — in order to keep cardholders coming back regularly.”

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