Companies have consistently sworn by and invested in loyalty programs, believing they’re the golden ticket to boosting sales. But here’s some disappointing news: Failing to target the right customers — which is far more common than it is believed to be — can be detrimental to the bottom line.
A recent McKinsey study analyzed 55 publicly traded companies in the U.S. and Europe that invested heavily in loyalty programs and found a 10 percent lower growth in their EBITDA over a 10-year period (2002-2012).
With a plethora of apps, platforms and channels breaking into the marketplace everyday, retailers will soon be forced to let go of rewarding loyalty and to start looking at new ways to bring more customers into their sales fold.
This month’s Omnichannel Tracker, powered by Vantiv, provides an exhaustive provider directory of companies in the ecosystem, new trends in the industry and an informed perspective that attempts to answer the “so what” question.