Marrying CRM Analytics With Research Insights to Formulate the Best in Class Customer Loyalty Strategy

Andy Kung

James Wong King Fai


The Customer Loyalty Program has been around for many decades with Betty Crocker (a brand name of General Mills) issued coupons for redeeming flatware in 1921 being one of the earliest known loyalty programs in America. Not until the late 1980s did Customer Loyalty Programs become popular with airline companies rewarding their loyal customers using air miles through the form of frequent flyer programs. Other service industries such as Banks, Hotels and Telecommunications s quickly followed and launched loyalty programs in various forms that included VIP clubs, discount cards and reward points programs.

The service industry can adopt a Customer Loyalty strategy more quickly than other industries because the service industry operates their business with a customer database and customer information is the back “engine” for running a Customer Loyalty program. Nevertheless, this did not stop other business industries from establishing their Customer Loyalty program. Instead, many other different industries, including restaurant / QSR, supermarket, bookstore, shopping malls, FMCG and luxury brands, all began to develop their own customer database to form their loyalty program engine.