Rewards that Reward†

Most customer-loyalty programs don't boost market share. Here's how to improve the odds.

Wall Street Journal, September 22, 2008 — Used by businesses for more than 25 years, loyalty programs aim to entice consumers to make repeat purchases by offering them rewards — things like discounts on future purchases or points toward free airline tickets.

Since companies continue to expand them, one would think loyalty programs are powerful tools for boosting market share. Our research indicates many aren't, at least not as designed.