Many loyalty programs are M.A.D. but not in the mental sense, but the cold war sense. Many readers will know that M.A.D stands for Mutually Assured Destruction.
Nuclear powers will not initiate a war against each other because it will assure their own destruction from retaliation. So the immense nuclear powers have cancelled each other out.
Loyalty programs have become so prevalent they too cancel each other out.
If you and all your competitors have a loyalty program, which will the consumer use, the one with the biggest benefits or the easiest one to use?
Loyalty programs have created a new field of competition. You no longer compete on just product, price, place, and people, but also programs. So all of a sudden it all just got harder.
If the product, prices, and place of business are the same and the loyalty programs similar. It leaves one place for competition. People. And people = service.
The ultimate loyalty program is based on delivery. All you have to do is deliver what the customer wants - every single time. There is no need to deliver more, and certainly not less. But deliver to the customers what they want and expect every single time to create loyalty.
Loyalty built on service is lasting, but when built on a scheme it will only last as long as the scheme.
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