Difficult to understand, administer and shop – that's the verdict of David Weiner, Chief Executive at Cole Systems, on most of the loyalty programmes around today.
Speaking in a podcast on What's Next Retail, Weiner said: "I think when you look at most of the loyalty programs that are in the market today, the first word that comes to mind is difficult. They're difficult to understand, difficult to administer, and difficult to shop."
Weiner said it will be the retailers who fully integrate loyalty into their social media and multi-channel distribution programmes who win the loyalty race.
"Loyalty not just a points programme any more , it's understanding the lifestyle of our customers and how to keep them coming back. It’s not about freebies and discounts. It's about creating a brand experience that your customers can relate to."
During the podcast he described daily discount deals as a "distraction' saying the customers who take up these offers aren't normally the retailers usual customers.
He added that loyalty still exists today and that branding and social media help to build loyalty. However, he said that some retailers still have a way to go in identifying their customers and their habits.