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Firms undermining loyalty schemes with Christmas discounts
17 Dec 2010

UK firms are undermining their own loyalty schemes by offering heavily discounted goods in the run up to Christmas, according to new research.

A report by online loyalty network Maximiles has found around 80 per cent of customers will stop shopping at a particular store following the expiration of a Christmas promotion, reports marketingweek.com.

Guy Keeling, managing director of Maximiles, expressed his belief that companies should re-think their approach to loyalty programmes in the wake of the findings.

"Brands need to think smarter about their promotions by building a reward element where money off is directly related to customer loyalty," he told the news provider.

"By offering discounts separately from ongoing loyalty promotions, retailers undermine their reward programmes."

The survey of 1,100 consumers also found that 40 per cent of respondents forget to use their loyalty card on a regular basis.