How to Use Loyalty Programs to Target a Brand’s Most Devoted Consumers

Connecting with the most satisfied users will often yield the best results

Though loyalty programs show a sign of trust between consumers and brands, they don't create that loyalty. Getty Images

Hardly a day goes by when you don’t visit a store, restaurant or supermarket and have an employee ask, “Do you belong to our loyalty program?” Loyalty (or rewards) programs have become ubiquitous. A fact of life in American business. Accordingly, it is helpful to ask what the role of a loyalty program should be in a company’s marketing and customer relationship management efforts.

John Larson is the senior partner at John Larson & Company.