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Providers of customer loyalty programs to enhance business performance. Review customer loyalty rewards programs and loyalty incentive programs for a solution that suits your company needs.
Online Rewards Loyalty Program

Online Rewards knows that positive, appreciative work environments help you retain your best customers. Our web-based rewards program makes implementation easy. Call now.

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7 Customer Loyalty Programs That Actually Add Value - Hubspot

Apr 3, 2012 ... Discover applicable ideas for customer loyalty programs and learn how you can measure their success.

Six Myths About Customer Loyalty Programs - Forbes

Feb 24, 2014 ... Low-margin retailers often argue they can't afford customer loyalty programs, but is that true? Two business professors make the case that such ...

Why small businesses should be utilizing customer-loyalty programs

Apr 25, 2014 ... Whether the goal is to continually increase sales or to jumpstart sluggish revenue , customer-loyalty programs appear to have become a staple ...

Category:Customer loyalty programs - Wikipedia, the free ...

Wikimedia Commons has media related to Customer loyalty programs. The main article for this category is Loyalty program.

Loyalty program - Wikipedia, the free encyclopedia

Independent hardware stores such as Ace Hardware and True Value added customer loyalty programs in order to compete more effectively against larger ...

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Ideas for Creating a Customer Loyalty Program - Small Business Blog

Advice for creating a loyalty program using customer management software. ... When implemented well, these programs can benefit both customers and ...

FiveStars | Customer Loyalty Programs

FiveStars is the most widely used customer loyalty network for small and medium businesses in North America. It integrates with merchant POS systems to give ...

How to Turn New Customers into Repeat Customers (Secrets of ...

May 29, 2013 ... Customer loyalty programs can be a gift and a curse. When done well, they can keep customers coming back for repeat purchases, potentially ...

Loyalty Platform Drives Unbeatable ROI – TIBCO | Loyalty Lab

Fast-to-market and built from the ground up, TIBCO Loyalty Lab Reward has everything the marketer needs to improve customer retention, frequency, advocacy, ...

Customer Loyalty Programs to Increase Customer Retention

The challenge comes in maintaining the high-level of engagement that establishes enough “stickiness” to create customer loyalty. Our solution isn't just a  ...

Colloquy

As the experts in customer loyalty programs, Colloquy has been the voice of the global loyalty marketing industry since 1990.

www.colloquy.com
LoyaltyOne Co

LoyaltyOne is the premier coalition loyalty program in Canada. Check out the business leaders in the AIR MILES reward program today!

loyalty.com

Business Guide to Customer Loyalty Programs


Customer loyalty programs can help build relationships with customers, direct their behavior, and increase repeat business. You can design a loyalty program that helps you gain customers and keep the ones you have. An added benefit is the ability to better track customer purchases, allowing you to respond to buying trends and phase out poorly performing products and services. New technology has expanded the available types of customer loyalty programs. You can implement a traditional reward card or use one of the new methods, such as administering your loyalty program with a mobile phone application. Ultimately, customer loyalty programs can positively impact your bottom line.

Benefits

Customer loyalty programs provide a way to personalize the sales experience and make customers more engaged with your brand. This provides numerous benefits to your business, including benefits to your bottom line.

Better customer involvement

Customers love loyalty programs. In the U.S., membership in customer loyalty programs now tops 1.8 million members, according to a census taken by the marketing firm Colloquy. They make people feel involved with your brand and stimulate the reward centers of the brain to make them eager to come back and purchase from you again. Tiered loyalty programs can feel like a game to consumers, and they will continue to patronize your business to get to higher levels in the program.

Trend management

Using customer loyalty programs helps you determine which aspects of your business are doing well and which need work. If customers with loyalty cards tend to shop at certain times or in certain areas of your store, you can hold special promotions at slow times or adjust other areas to increase their appeal. You can use data obtained at the point of sale to discover these details, since customers who are subscribed to loyalty programs leave demographic information that can be directly tied to sales information.

Retain and regain customers

By offering a customer loyalty program, you help prevent customers from leaving for your competitor. In addition, because you have their personal information, you can tailor special coupons or offers to entice back customers who have not visited your business in a while.

Increase profitability

Customers with loyalty cards not only visit your store more often, they also purchase more. Loyalty cards encourage spending, since for the customer, spending brings rewards. Because of the ties they feel with your brand, customers in loyalty programs are also more likely to spend more in a single transaction.

Pitfalls

Expense

Customers ordinarily enjoy receiving free gifts from companies they patronize. Customer loyalty programs can be an effective way to encourage customers to shop more frequently or prevent them from defecting to a competitor. There are plenty of issues of concern that you should take into account before implementing this type of program. The most important issue is cost. Giving away free items on a continual basis is a significant expense. You have to make sure you can afford to operate this type of program. It would create a customer relations quagmire to have to shut down a loyalty program because you did not adequately assess the expense of the endeavor.

Not matching rewards to customers

Customer loyalty programs should be carefully constructed. There is little doubt that customers like receiving free gifts, but an inadequate reward structure might not produce the desired behavior. If your rewards are too robust or frequent, you may end up spending more money to produce the desired behavior than needed. Once customer loyalty programs are running, it becomes difficult to make changes that do not upset customers, particularly if you scale back the reward structure. Adjusting your company's loyalty program may give your customers the impression that your business is in trouble.

Failure to segment

Customer loyalty programs are designed to reinforce specific customer behavior. Not all customers need the same level of reinforcement. It can be a mistake to treat all customers as a homogeneous group, providing the same incentives to all. If you identify the customers who are more likely to exhibit undesirable behavior, you can target your loyalty program to them. In this way, you provide greater rewards to high-risk segments, while providing less robust rewards to customers that are already satisfied. If you implement a generic loyalty program, the program will likely end up costing you more for the same results.

Inadequate tracking

Another potential problem with some customer loyalty programs is not having a way to track the results of the program. Without a tracking or reporting feature, you may be able to tell that your customers appreciate the program but not how much the program has contributed to a change in behavior. Neglecting this feature can decrease the usefulness of your investment.

Pricing

Customer loyalty programs offer a big reward for a small investment. In fact, according to Joseph Nunes of the USC School of Business, companies that offer perishable products or services have low costs but a lot to gain from starting a loyalty program.

Costs will vary widely, depending on the program, but analysts at Gartner report that U.S. companies spent $1.2 billion on loyalty programs in recent years. As businesses move from passing out plastic cards for customers to carry in their wallets to providing mobile apps for download, the administrative costs of loyalty programs stand to drop even further.

Conclusion

Personal relationships with customers ensure that they patronize your business instead of a competitor's. Customer loyalty programs are an ideal way to build that relationship. Most people appreciate rewards, gifts, and benefits, and the desire to reach a reward plateau can keep your customers engaged and coming back for more. Two of the things you should consider before implementing a loyalty program are expense and segmentation. Before you begin to give away rewards, make sure you can afford to sustain the program over the long haul. Consider a graduated rewards scale that provides more frequent rewards to unhappy customers. This can make your loyalty program more affordable without sacrificing results.

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