Loyalty/frequency marketing, especially programs which offer discount pricing and little more, are often seen by customers as expected or one-dimensional. They provide 'benefits' - cookie-cutter components - which, in many cases, have been provided by the slick program developers, with little or no input from the customers themselves. These programs fail, in other words, to offer value that would strategically, and positively, differentiate them from those of competitors. Loyalty/frequency marketing isn't CRM and CRM isn't loyalty/frequency marketing. If developed on a process-centric and customer-centric basis, loyalty/frequency marketing programs can be an effective element of an equally effective CRM program. The blissful marriage of the two, however, is quite rare.
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