Expensive, ineffective loyalty programs are in need of a makeover.

Retailers that shift to digital-centric programs that engage and promote brand advocacy will retain the loyalty of customers, according to the “Intelligence Report: Loyalty 2017.” The report, from L2, evaluates the successes and pitfalls of loyalty programs for 99 consumer brands across activewear, beauty, big box, department stores, and specialty retail.

“It’s no news that in today’s oversaturated market brands are struggling to retain the loyalty and attention of customers,” explained Mike Froggatt, director of intelligence at L2. “Regardless, the majority of consumers are still dissatisfied with current loyalty offerings, creating an opportunity for brands to build reward structures that add value to core products and services while differentiating the brand.”

Clear communication is imperative for loyalty program success. That’s why 77% of brands mentioned loyalty in the…