With credit cards becoming increasingly commoditized, cardholder loyalty is an area of growing importance. This report examines the theory behind cardholder loyalty. It then illustrates these in practice by profiling many of the most innovative loyalty programs in the world. This report includes an analysis of the latest chip based loyalty schemes and concludes with a "Key Learning" section.

Scope

Focuses on loyalty programs attached to payment cards. Examines and profiles some of the most successful and innovative loyalty schemes in the world. The research is global in its scope, examining programs from the Middle East to North America. Conclusion draws upon examples in the report to answer the question of what makes for a successful loyalty program.

Highlights

The range of rewards is important to make the scheme attractive to all levels of spenders. A program with fantastic rewards will not be attractive to a low spender if $10,000 needs to be spent before a reward can be claimed. Whilst chip based systems are ideal for large multi retailer schemes, they might not be a realistic option for a small issuer which might not be able form a big loyalty scheme or afford to re-equip a chain of partner merchants with new POS terminals. Just as important as the rewards themselves is the opportunity for cardholders to accumulate points to be able to claim these rewards. The easier it is for a cardholder to amass loyalty points, the more attractive the program will be to a broad range of consumers.

Reasons to Purchase

Understand the secrets to successful payment card loyalty Learn what action the leading card issuers are taking to attract and retain cardholders Discover how some issuers are leveraging chip based technology to take their schemes to the next level.