Loyalty Marketing
That's the title of a recent article by David Baker that says, in part,
Over 75% of the consumers we know and love participate in one or more programs (Source: Jupiter). Our parents' loyalty
programs were simple programs with simple rewards: you buy something, and there was a degree of personalization in the
product buying experience. Today virtually everyone has a credit card they are building points on, an airline, hotel, rental car,
book club, coffee shop, but most of the larger loyalty programs were driven from service-based businesses with perishable
products or services. Today, it is confusing to define a loyalty program.
While there is no denying that loyalty programs have value, do they have long-term value — or are you simply bidding
for the highest spender? There is no denying that members of loyalty programs spend more than traditional customers, but it
the spending pattern due to this loyalty program — or are big spenders traditionally migrating to programs that have rewards so
they can reward their own spending patterns?
No matter what programs a marketer tacks on, the essence of any marketing program is to keep the promises you make to your
prospects and customers. If a loyalty program figures in to that, be sure that the promises you make are the promises you keep ...
and your loyalty program, whatever it is, will be sure to work!
... and that's our take on the news today!
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