Points-based programs have a place in marketing strategies. Their role is that of a promotion, and they should be treated as such. But they should not be confused with loyalty marketing: At best, they are a means of assembling customer purchase data, which can then be used to build real CRM.
The failing of points programs is that they rent customers without engendering true loyalty, according to Adam Sarner, a Gartner analyst. For Sarner, true customer loyalty is
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