The research, which surveyed over 50 global marketing leaders, also found that a further 9% were unsure of their loyalty scheme’s contribution to the business.
Marketers told Forrester that loyalty marketing often has unclear objectives and focuses too much on short-term financial goals.
Lack of differentiation, over-optimistic goals and targeting the same customer base with too many offers were cited as the main reasons why loyalty initiatives fail to live up to expectations.
The report, A New Approach To Brand Loyalty, also found that 79% of CMOs think customer retention is the key metric used by senior management to evaluate loyalty marketing initiatives, followed by revenue growth and customer engagement.
Other key findings in the report show that 65% of CMOs believe the top priority in their role is to acquire new customers. This was followed by increasing brand awareness and improving marketing return on investment.