This paper intends to examine the analytics and research approach that are being used in customer loyalty. It will evaluate the pros and cons of each method and recommend a new methodology to help business leaders and loyalty marketers to better formulate customer loyalty strategy. The paper will also review the latest development in Customer Loyalty / CRM programs. It will examine the strategic issues that are confronting business leaders / loyalty marketers and most importantly it will identify enhancements in customer research and CRM analytics for building an effective loyalty programs. In addition, business cases will be discussed to showcase how the new analytical approach can be applied in the commercial world and what impacts it could bring in formulating Customer Loyalty strategy.