How to turn customers into fans with loyalty programs

McKinsey research indicates successful loyalty programs can boost revenue from customers by 15% to 25% annually, but two-thirds of such programs don’t deliver enough value to move the lever. McKinsey executives Jose Carluccio, Oren Eizenman and Phyllis Rothschild help brands maximize their loyalty efforts by outlining eight significant factors that drive success, including “redemption elasticity,” measuring “breakage,” enlisting valued partners and establishing success benchmarks based on engagement.