Loyalty programs are directed by the retailers
the existing customers by building and maintaining
positive relationship with them. It is a
strategy that has evolved recently. In this
strategy you are targeting the existing customers by
looking after them and pampering them.
Loyalty programs work on the premise of offering
to people who continue being their customers and
from you. Airlines have successfully run their
flying programs for years and have been able to have
steady flow of customers. Similarly many retailers
started programs like a frequent buyer cards, wherein
frequent customers were given free gifts and at
additional discounts also. This loyalty program can
be referred to as customer recognition program.
However you should not underestimate the workload
that one to one relationship marketing presents
especially as the program grows in size. The larger
your company, the more customers you attract and
more rewards you need to give over the life of the
loyalty program. This is not necessarily a bad thing
can take an enormous amount of resources so you
need to prepared for it to grow and grow quickly.
you should consider having several levels of your
loyalty programs, so that the customers who spend
more, earn more rewards. There again, this is tricky
implement, so it helps to have a marketing agency
and reliable technology and administration teams
can handle the logistics for you.
The loyalty programs can help you increase your
because in these programs your good customers who
you repeat orders of a certain amount only get the
rewards and benefits. While running these loyalty
programs, the other discounts are not given,
to non- members. Also no funds or resources are wasted
other advertising or promotion material. On the
less money is wasted and your profits increase when
run a loyalty program.
It is always good business sense to nurture and
your existing customers. Therefore spending some
on this program will be a very sensible thing to do
because one it is easier to nurture the existing
customers than trying to find new customers. And two
existing customers are the ones who give referrals.
you have to take care of your existing customers for
health of your business.
Scott F. Geld serves as the V.P of Marketing for
Feel free to contact him with any feedback or
questions about this article:
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