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Do Rewards Programs Translate to Customer Engagement?

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Posted by Lisa Hochgraf

According to Allegiance Inc., nearly 90 percent of American shoppers participate in rewards programs to gain points, discounts or prizes for purchasing products. But do these programs actually create engaged customers, or are they just a bribe for repeat business? Allegiance explores this issue in a new white paper, "Buying Loyalty: Do Rewards Programs Translate Into Customer Engagement?"

In the company's release about the new paper, Allegiance Best Practices and Loyalty Expert Kyle LaMalfa says:

"Rewards programs have become pervasive in business today, but they alone cannot foster the emotional connection that is needed to develop long-term customer engagement. To connect with customers' hearts and minds, companies need to encourage two-way communications and create a convenient way for them to express their comments and concerns. Engagement programs [such as Allegiance's enterprise feedback management systems, designed to help create a two-way dialog with customers] work hand-in-hand with loyalty programs to strengthen the long-term bond between the customer and the brand."

What do you think? Anyone have an engagement program in place?

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