1、1|Loyalty Marketing:The Good,the Bad,and the UglyLOYALTY MARKETING:OCTOBER 2024The Good,the Bad,and the U|2|Loyalty Marketing:The Good,the Bad,and the UglyTABLE OF CONTENTSBACKGROUND.3EXECUTIVE SUMMARY.8DETAILED FINDINGS.11 Benefits.12 Challenges.14 Perspective from White Castle.16 Loyalty Program F

2、raud.17 Subject to Fraud?.18 Tools to Protect Loyalty Programs.20 Importance of Loyalty Marketing.22 Other Learning from Qualitative Discussions.23PERSPECTIVE AND GUIDANCE ON LOYALTY MARKETING FRAUD.25APPENDIX.28ACKNOWLEDGEMENTS.31ABOUT THE ANA.32ABOUT HUMAN.323|Loyalty Marketing:The Good,the Bad,an

3、d the UglyLoyalty marketing rewards customers for their repeat purchases or interactions with a brand.It is big business and is increasing in importance.Think about airlines,hotels,and quick-service restaurants.Loyalty marketing programs are offered from national brands and local ones,like a neighbo

4、rhood pizza shop.BACKGROUND1Philip Shelper,The True History Of Loyalty Programs,Loyalty and Reward Co.(April 20,2020).Today,loyalty programs are offered in numerous categories,including(but not limited to)consumer packaged goods,entertainment,financial institutions,restaurants,retailers,and travel.A

5、ccording to a 2024 report on the loyalty management market from Fortune Business Insights,the global loyalty market is projected to grow from$13.31 billion in 2024 to$41.21 billion by 2032,exhibiting a compound annual growth rate of 15.2 percent during the forecast period.Loyalty programs have been

6、around for hundreds of years possibly dating back to ancient Egypt according to Loyalty&Reward Co.,a loyalty consulting firm.1 In 1793,a New Hampshire merchant began rewarding customers with copper tokens.The tokens could be accumulated and used for future purchases,thereby generating repeat visits,