This is the first part of a series that begins with 7 critical mistakes.  The first mistake for me is dead on, as the commoditisation of loyalty plans makes them less and less meaningful to consumers.  I would argue they still drive certain behaviours, such as which card to pull out first, but the the loyalty they create is fleeting.  Furthermore the benefits from the plans are really not that significant, when you translate them into dollars.

Aneace’s Blog: Critical mistake #1: Focus on loyalty rather than the payment experience

“Points for the sake of points is just buying off the customer, it doesn’t drive loyalty,” says Gartner Research analyst Adam Sarner, who tracks customer loyalty programs. True loyalty, Sarner says, means getting increasing amounts of information from a customer who’s happy to give it in return for a benefit. Surprising good customers with a sudden, unexpected discount or upgrade would go miles toward making them swear by a brand for life, he believes. “That would be a religious experience for most people, compared with having to calculate, ‘Let’s see, I have 5,995 points, when do I get something?'” Sarner says.

Relevance to Bankwatch:
I am looking forward to this series.  As I watch North American EMV implementations, and have watched the European ones, the approaches still fall back on old thinking, and this series could be a catalyst, to help to break out of that monotony.

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