Where it’s at: Loyalty programs
I can’t help but notice how many stores I shop at these days that have a rewards program. Some programs are based on a point system that keeps track of my purchases and allows me to cash in the points for rewards. Others provide coupons for dollars off future purchases when I spend a certain amount. Still others will put me on their mailing list for coupons and let me know about special offers.
No matter how they’re structured, all rewards programs have one goal: encourage and reward loyalty. They work. When a decision needs to be made between one company who has a rewards program and one who doesn’t, chances are very likely the company with the rewards program will get my business. I’m certainly more likely to return to a store or purchase a certain brand if it has a loyalty program. It’s a great way for a company to show you they appreciate your business and want you to return.
- Tamzen (tgrimes@labov.com)
Tamzen, I completely agree. Loyalty Programs help businesses. We started ours (at a car dealership) about 3 years ago and have seen a dramatic drop in customer defection and increase in dollars spent per visit. Any business that isn’t harnessing loyalty and promoting benefits to their customers will eventually lose out to one that is. People like to be rewarded and appreciated.
January 27th, 2010 at 5:46 pm