The Rise

Loyalty Programs Decline

Customer loyalty programs are on the decline due to growing customer resentment of the programs, according to business consulting firm Service Dimensions Inc.

"There's a new breed of customer out there...who is beginning to resent being held captive by loyalty programs that expect them to jump through hoops for one free enticement," said spokeswoman Joan A. Pujunen.

She explained that the decline is due to inaccurate program results, lack of program staff accountability, and customer unwillingness to participate.

Pujunen predicts successful customer loyalty programs will not require customers to participate to receive benefits.

"The programs that survive will be those where the customer isn't required to carry a card, remember a number or show identification." concluded Pujunen.