The Customer Loyalty Solution : What Works (and What Doesnt) in Customer Loyalty Programs

Dividing your customer database into a few segments based on some logical scheme and developing a marketing strategy for each segment.

Always setting aside a control group in each segment that gets a generic marketing promotion (or none at all) so that you can measure the effectiveness of the promotions.

Differentiating the promotions to each segment by personal data in the database. “Since you bought the ski outfit last October, you may want to consider a flannel nightgown to wear on those cold evenings.”

Finding a way to collect the data on what happened after you sent the promotions. If you can’t get the data, you may be wasting your money on the promotions.