What do loyalty programs have in common with digital cameras, MP3 players and web sites?
Most people have decided that they don’t need to buy a digital camera anymore. They already have a high quality camera built into their smartphone, for free. With Facebook, local businesses are discovering that they don’t need to pay for a website anymore. They get the same function with their fan pages, free of charge.
Lots of things have become obsolete over the last decade, absorbed into other products and services and made free. MP3 players, watches, classified ads, encyclopedias, travel agents, books and bookstores, CDs and music stores.
Loyalty programs are going the same way, as local businesses discover that they can achieve pretty much the same objectives with social media and credit card tie-ups.
This graph shows the growth of smart phones versus digital cameras. Our vision is to see the same graph comparing Fan Clubs to traditional loyalty programs.