As per business analytics, loyalty programmes do not seem to be faring well. Business research has been conducted to gauge the reasons for the same and how that may be rectified. Majorly, negative opinion derives due to dissatisfaction regarding rewards system, rigid work structures and customer experience issues online. It seems most loyalty programmes reward customer purchases only, whereas customers of today engage with brands by various other means. Starbucks has developed a loyalty programme based on mobile payments that has been extremely successful. Air Canada’s programme on delivering badges at specified airports exchangeable for air miles, proved an instant success with anRoI of a whopping 560%.

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