Loyalty programs don’t increase profits

Loyalty programs do not necessarily lead to a company making greater profits, Ryerson University research has found.

Increasing levels of customer satisfaction negates the profitability of loyalty programs, as customers who are already happy with a company do not need such incentives to continue their patronage.

And while loyalty programs do entice people to become and remain customers, the research also found that companies have to increase prices to offset any future discount offered.

Read more at Ryerson University