Loyalty Programs: Chip's Real Potential Unlocked

Table of Contents

1. Introduction 3

2. Loyalty Programs 4

• 2.1. Loyalty Overview 4
• 2.2. What is a Loyalty Program? 4
• 2.3. Benefits of Loyalty Programs 5

3. Key Elements of a Loyalty Program 7

4. Example Loyalty Programs 9

• 4.1. Additional Revenue Sources - American Express Membership Rewards 9
• 4.2. Cashback Rewards - DiscoverR Cashback BonusR Award 11
• 4.3. Coalition Loyalty - Upromise 12

5. Debit Loyalty 13

• 5.1. Overview 13
• 5.2. Visa Extras 13
• 5.3. Preferred RewardsSM 13

6. Smart Card-Based Loyalty 16

• 6.1. Overview 16
• 6.2. Visa smart Rewards Platform 17
• 6.3. Smart Card-Based Loyalty Initiatives 18
  • 6.3.1. Target RewardsTM Program 18
  • 6.3.2. Bonus Card 20

7. Selected Loyalty Solution Vendors 21

• 7.1. Enhancement Services Corporation 22
• 7.2. Maritz Loyalty Marketing 22
• 7.3. MasterCard Loyalty Consulting and Reward Services 23
• 7.4. Quantum Loyalty Systems 24
• 7.5. Trilegiant Loyalty Solutions 25

8. Conclusion / Forward Look 26