Wednesday, July 22, 2009

Customer Loyalty Reward Programs: A Way to Increase Revenue

So, what can we learn from these examples? First, it’s a great idea to offer a customer loyalty/reward program. It’s less costly to keep current clients than it is to find new ones. Add to that the idea that you should try to capture all of the business you can get from your current clients and you’ve got the foundation for a loyalty program.

Second, make sure it’s something easy to implement and explain. If it’s too complicated no one will use it because they won’t understand it. Moreover, you don’t want to create a plan that is costly.

Third, create a program that can’t be hi-jacked. Consider the Panera example. The loyalty card was too easy to duplicate so someone did. Unfortunately, there are unscrupulous people out there.

Interestingly, participation in loyalty/reward programs is up in this recession. According to Colloquy research,

“U.S. consumer participation in rewards programs is on the rise across all demographic segments, . . . Consumers are leaning on loyalty programs to stretch household budgets further by earning rewards for their purchases.“

What does this tell us? That using loyalty/reward programs can be an effective strategy for increasing revenues even in a recession.

Excerpt from Small Business Trends article by By Diane Helbig read the full article here ... http://cli.gs/Rz0T62

1 comment:

  1. Successful organizations must show their clients and customers how much they appreciate their business. Bukoo Gifts offers best Customer Loyalty Programs that build relationships with your clients. Show them you appreciate their business and are willing to invest in keeping their business. Also, utilize Bukoo for referral gift programs, and give your customers and clients thank you gifts for sending business your way.

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