Successful Loyalty Programs can be a very effective strategy for building brand awareness, increased brand distribution, and repeat sales. This is especially true for retail establishments and SMBs.
Embracing the Concept
By embracing the concept, it helps you establish ownership of a unique loyalty marketing tool that promotes your brand, recognizes and rewards your loyal customers with benefits. In order to get to that point, there is the challenge of creating an innovative concept, designing the program, and establishing the timeline.
There are also invaluable benefits for the organizations creating these programs because of the insights from the following categories:
- Information about the types of products or services that generate the most sales
- Data about products or services that are frequently purchased together such as the popular purchase with purchase option in cosmetics where the customer is offered the option of buying another high quality item at a reduced price
There are a variety of retail Loyalty Programs such as the Loyalty Points Program where customers earn points based on their purchases. Depending on how the program is structured, the timeline for the redemption of points can vary. One example is the Loyalty Program offered by a number of grocery stores where after a customer spends $1,000.00, they can choose to receive a small cash discount on their next purchase, or a fresh turkey.
Another type of Loyalty Program involves a multi-level Loyalty Program with prime benefits for the most loyal customers and a totally different level of benefits for customers who purchase products on a more casual basis. The last major Loyalty Program involves a partnership program where customers earn points by shopping with any number of the participating partners in the program.
In developing these type of programs, it’s important to clearly identify your target market whether it’s teens, the senior market, men 25 to 40 years of age, parents of young children, etc. This decision will give you a platform for developing the program. It’s easy to see from the potential targets listed above that the program should not be a one size fits all.
The Importance of Promotion
Most firms recognize the importance of promoting these reward programs on social media, store flyers, FSIs, signage, advertising, blog posts, online banner ads, email campaigns, direct mail, newsletters, and public relations.
One important feature of a successful campaign involves measuring the effectiveness of your program as a key component for future growth.