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SPECIALTY STORES: CRITICAL ISSUES; CUSTOMER LOYALTY PROGRAMS STILL A DAY AWAY; THE TIME HAS NOT YET ARRIVED FOR POCKETS' POINTS, MITCHELLS' MILES OR THE BIGSBY BONUS.

NEW YORK -- The airlines offer frequent flier miles, Neiman Marcus has In Circle, at Saks Fifth Avenue it's called Saks First. These loyalty programs are used by retailers and non-retailers alike to reward customers for their business and keep them coming back for more.

But how's a small store to compete? Instituting such programs is often complex and expensive, and, as a result, most independents opt against them. Instead, they choose to depend on the personal touch to get close to their loyal customers.

"I carry all the airline mileage cards in my wallet so I'm one to talk," said Butch Blum of the specialty store that bears his name in Seattle. "But it's not ...

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