Most loyalty programmes are built to hand out points; not to build loyalty. For single-brand companies, that trade-off is quietly eating margin: discounts train customers to wait for the next offer, not to come back for the brand.

In this white paper, Peter Schlegel sets out why points-based loyalty is a net-negative for single-brand companies, and the framework we use with clients to fix it: five strategic jobs — Identify, Understand, Activate, Recognise, and Learn & Optimise, and three investment gates: Strategic, Economic, Operational - to test whether a loyalty investment is actually worth making.

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