Changing the Retail Game With the Loyalty Measurement Triangle

• loyalty is usually how transactions are identified, so holding out customers is often impossible;
• the benefit of a loyalty program isn't immediate, rather it manifests itself in more visits over time;
• strong results among a small amount of loyalty participants doesn't offset declining business of the rest of the base; and
• organizations are uncomfortable thinking in terms of customers instead of products.

So it's no surprise senior executives get frustrated trying to pin down the exact value of a loyalty program. Studies show that almost half of surveyed companies list measuring market value and effectiveness as one of their top challenges in program execution. Not knowing the true value of their customers’ loyalty is universally frustrating for retailers.