The latest operational, market, and technological challenges for loyalty management systems

Loyalty or rewards programs have become an essential feature for all debit and credit cards, and many card-issuers now maintain a growing portfolio of several debit- and credit-based loyalty programs. There are a host of loyalty programs that cater to almost every segment of the population with different lifestyle-based reward options for different customer segments. Loyalty programs are specifically designed to reward customers for past purchases and provide incentives for making future purchases. A rewards program enables retention, cross-selling, and increased customer penetration while providing a strong value proposition to the customer.

This paper looks at trends in loyalty management across three dimensions—operational, market and technology—and explores challenges and recommendations for financial institutions.