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Rewards and Loyalties: A Program Review

Published by: IDC

Published: Sep. 16, 2008 - 14 Pages


Table of Contents


Table of Contents

Financial Insights Opinion

In This Report

Situation Overview

A Definition and Some History

Typical Transaction Process

Figure: Sample Rewards Funding Program

Figure: Merchant-Funded Rewards Program

The Controversy over Interchange Fees

Types of Reward Programs

New "Twists" in Rewards

The Influence Factor

Figure: Reward Points as Influencer on Decision to Use a Particular Credit or Debit Card by Age

Figure: Reward Points as Influencer on Decision to Use a Particular Credit or Debit Card by Household Income

How Businesses Can Benefit from Rewards Programs

Future Outlook

The Trend Toward Relationships

Essential Guidance

Actions for Financial Institutions

Meaningful Rewards Should Be a Given

Actions for Vendors

Learn More

Related Research

Synopsis

Abstract

This Financial Insights report looks at the issues affecting rewards and loyalty programs and the dynamic changes that are occurring. It also provides guidance for issuers and vendors. "The loyalty and rewards programs continue to evolve and change," says senior research analyst Dana Gould. "While we expect to experience changes in the way these programs are funded, issuers will continue to seek opportunities to reward customers to develop loyalty. New ideas, especially in the online arenas, will introduce new players into the market and will result in the introduction of new and innovative programs to provide rewards for loyalty."



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