Online Loyalty Programs: Perpetual Motion?

Loyalty programs are in increasing popularity around the world. They help to motivate members to make the next purchase and support the firm’s objectives. Establishing online loyalty schemes will create an additional brand touchpoint that will provide benefits for members, therefore loyalty schemes require small ongoing maintenance. Results show that repeat visits on three different online loyalty schemes have been consistently low with nearly 80% of total visitors only accessed their loyalty program only once. This implies that membership visits decline even when members are given incentives. Hence loyalty programs do not achieve perpetual motion and are not self-supportive.