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Capgemini report finds modern loyalty programs insufficient and ineffective

A report by Capgemini Group, consulting and technology company, has found that most loyalty programs do not meet the needs of customers nor do they actively engage consumers.

March 26, 2015

A report by Capgemini Group, a consulting and technology company, has found that most loyalty programs do not meet the needs of customers nor do they actively engage consumers. They found that the majority of programs were focused on sales instead of encouraging consumers to engage with the brand.

Only 24 percent of loyalty programs allow customers to redeem their benefits through mobile devices. According to a press release by Capgemini, "Just 11% of loyalty programs offer personalized rewards based on a customer’s purchase history or location data."

Capgemini made a key recommendation that loyalty programs should be adjusted to drive customer engagement. For example, loyalty programs could reward users for taking surveys. The report also suggested companies should reward customers for social media engagement.

To perform their study, Capgemini examined 160 loyalty programs from a variety of industries and they analyzed social media posts about those programs.