Once registered, you can:

  • - Read additional free articles each month
  • - Comment on articles and featured creative work
  • - Get our curated newsletters delivered to your inbox

By registering you agree to our privacy policy, terms & conditions and to receive occasional emails from Ad Age. You may unsubscribe at any time.

Are you a print subscriber? Activate your account.

Overcoming barriers to loyalty programs

By Published on .

Spencer Hapoienu, co-founder and president of New York database marketing agency, Insight Out of Chaos, maintains that for loyalty marketing to succeed, three things must happen:

CRM at center: Customer relationship management must become a platform of the entire business. "You use the data to drive everything-your marketing, merchandising and packaging decisions," he says.

No fear of change: "Managers are afraid of making massive changes in the ways their companies do things and of the costs involved. A loyalty orientation requires some new systems and a whole new structure. To flip from an 80/20 ratio of spending on conventional marketing to a 20/80 spending ratio favoring loyalty marketing requires a great deal of organizational change."

Continuity: "The lack of stability in marketing makes it difficult for CMOs to feel comfortable committing to long-term change." Leave the loyalty programs alone.
Most Popular
In this article: