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The current economic situation suggests that the number of promotions will continue to rise. Increasing prices in stores are forcing retail chains to intensify sales in order to attract and retain customers. When we also consider consumer sentiment and the price wars among the most popular retailers, they will need effective tools for managing inventory and promotions more than ever before, while also ensuring a positive customer experience to maintain a highly competitive position in the market.

Some companies - due to the nature of their industry, or the fear of losing profits and only incurring more costs associated with the implementation of promotions, are afraid to introduce a loyalty program. There is no denying that in this way myths are growing, which can unnecessarily discourage people from reaching for this solution, while it could brilliantly help to achieve business goals. With this article we will try to disenchant them.

A loyalty program is a seamless composition of benefits that helps meet current company goals and respond effectively to competitors. It consists of the base mechanics of the loyalty program, special offers available to club members, additional occasional activations and a whole range of emotional benefits. The question arises, however, to what extent this nimble approach to the value proposition to club members translates into the actual attractiveness of the loyalty program.