Next Generation Loyalty Management Systems: Trends, Challenges, and Recommendations

| Point of View

The latest operational, market, and technological challenges for loyalty management systems

Loyalty or rewards programs have become an essential feature for all debit and credit cards, and many card-issuers now maintain a growing portfolio of several debit- and credit-based loyalty programs. There are a host of loyalty programs that cater to almost every segment of the population with different lifestyle-based reward options for different customer segments. Loyalty programs are specifically designed to reward customers for past purchases and provide incentives for making future purchases. A rewards program enables retention, cross-selling, and increased customer penetration while providing a strong value proposition to the customer.

This paper looks at trends in loyalty management across three dimensions—operational, market and technology—and explores challenges and recommendations for financial institutions.