Retailers collecting customer data through loyalty schemes have been reminded that their main aim should be improving the customer experience.
Richard Baker, chairman of the Canadian firm Aimia, believes that some firms have become fixated on the data quality they can gather from loyalty schemes, while forgetting what the purpose of this information should be.
Fearing that loyalty schemes have "migrated into a world of jargon and cliches," Mr Baker is quoted by Marketing Week as saying: "It is not about the data. It is about serving customers."
Aimia is the owner of successful rewards scheme Nectar, and Mr Baker says loyalty programs are more important than ever in the current economic climate, as many of the past drivers of growth, such as a financial services boom or increased consumer spending, cannot be relied upon.
A recent study by comScore has revealed that the difficult economic climate is putting consumer loyalty to the test, with more customers switching from preferred brands to save money.
Posted by Paul Newton