- Thursday, September 25, 2014
- 0 Comments
Everywhere in the Philippines loyalty programs and loyalty cards are omnipresent. We all agree that loyalty programs are effective in engaging your customers.
But what about in the area of profit, what is the effect of Loyalty Programs? According to Emmett C. Murphy and Mark Murphy in their book Leading on the Edge of Chaos: The 10 Critical Elements for Success in Volatile Times, “ Reducing Customer Churn by 5% increase profits by 25% - 125%.”
This finding tells a lot on the importance of loyalty programs in the companies profit. It is a given fact that customer acquisition is expensive by 20% compared to creating customer retention programs.
And as mentioned above, bigger profits await those that can create loyalty programs that can effectively decrease customer churn.
- Friday, September 12, 2014
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A recent survey conducted by
Dailybreak Media Survey revealed findings that will make critics and
non-believers of Loyalty and Rewards Program jump to the other side of the
fence.
The survey will also
convince Brand Managers and Chief Marketing Officers to integrate and work
closely with their Loyalty Departments.
The general findings in the
survey reveals that “ Gen Xers,
Millennials and Baby Boomers Alike Willingly Engage With Brands When Incentives
are on the Table”.
The implication of this
findings forces Brand Managers to recalibrate their strategy by incorporating
loyalty and rewards program as one of the tools in achieving the kind of Brand
Engagement that they desire.
The most significant results stemmed from the overall
popularity among respondents of loyalty program membership:
•
83% of survey respondents acknowledged
belonging to one or more
brand/store loyalty programs, and 13%
said they belonged to five or more;
•
Brand loyalty memberships also drove
other behaviors, with 64% of
millennials, 79.6% of Gen-X'ers, and
66.2% of baby boomers responding that loyalty programs drove them to interact
with a brand online;
•
58% of all respondents buy from the stores
and brands whose loyalty
programs they belong to at least once a
month;
Those identifying as members of Generation X are the most
frequent loyalty buyers: 65% buy at least once a month from the stores or
brands whose programs they belong to. They're followed closely by baby boomers
(60.56%) and 68+ (54.84%).
Here in the Philippines, if we are to extrapolate these
findings I believe that the same results will be generated.
If this is the case, where the brands strive to engage the
attention-seeking consumers by offering valuable loyalty and rewards program, a
very powerful business model will take place. A business model rooted on greater
profits to companies that know how to give true added value to the consumers.
- Friday, September 05, 2014
- 0 Comments
Today I took my lunch at Tokyo Tokyo and found this paste in my table. A mobile app for loyalty program that Tokyo Tokyo is using.
No doubt loyalty and rewards program is gaining a big space as a tool for retailers in gaining the love of their customers.
The app is called Jive and is now part of my smartphone app.
- Thursday, January 16, 2014
- 0 Comments
This may look like easy, a walk in the park. But it is not.
We all want our customers to be happy. No company wants angry
customers.
But our practices say otherwise. We lack the program and
process to make them happy. In effect, we lose their business. Losing their
business mean our company downfall.
How about creating a program and process to make them happy?
How about taking it to a higher level? Say creating a Loyalty and Rewards
Program that will wow them - a Loyalty and Rewards Program that will allow them
to feel appreciated.
Appreciation is another easy to understand term but putting
this into a business system where it is felt – that is the challenge.
- Friday, August 30, 2013
- 0 Comments
by Diane Helbig is a Professional Coach and the president of Seize This Day Coaching
The other day I went to Costco to replenish several items in our home. As I was checking out the cashier called someone over who pulled up my purchase records. Turns out that if I upgraded my membership I could earn money back on my purchases; enough to more than pay for the upgrade. Why not?
Now why would they offer to give me money back on my regular purchases? Because they know that now I will choose Costco over the grocery store or another discount warehouse. They increase their volume without advertising or marketing. This is a customer loyalty/reward program that works. It effectively costs them nothing and they’ve increased the odds that their current clients will buy more.
Panera Bread Bakery-Cafes had a loyalty/reward program where you could get a free cup of coffee after the purchase of ten cups. They had to discontinue the program because someone created counterfeit cards and offered them on the internet.
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.
Beyond the lessons learned from the examples above is the understanding that in order to have customer loyalty you must provide an excellent client experience. It will do you no good to have a program if your product, service, and/or customer service is sub-par. Think about it. If the experience isn’t good there isn’t a program in the world that is going to keep clients coming back for more. So, in reality, customer loyalty/reward programs begin with customer service.
Before considering implementing a loyalty/reward program, do a quick reality check. Do you have something that your clients need, want, and like to come to you for? Do you provide outstanding customer service? If the answers are yes, then you can devise a loyalty/reward program that is solid and effective.
Provide outstanding customer service, have a quality product or service, and tack on an attractive program. Using this strategy, you will be able to not only penetrate your current clients, but retain them over the long term. Even in a recession, you CAN increase your revenue using customer loyalty/reward programs.
- Tuesday, July 24, 2012
- 0 Comments
by Blaine Millet
Social Media (Web 2.0) is fast becoming one of the most important and powerful influences in business today. It is evolving at record speed and gaining broad adoption - it isn't just for the technology industry any longer. With its foundation built on sharing information, collaboration, and relationships, it can transform the way organizations attract and retain Customers.
Customer Experience 2.0 is a unique and new way of thinking. It marries and leverages the tools and concepts of Social Media with the needs and wants of your customer - creating a much more engaging and rewarding customer experience. This combination leads to increases in customer loyalty and retention, sales and market awareness. It creates a more innovative and personal way for you to engage, understand and support your prospects and customers.
The experience an organization provides to its customers is at the heart of building customer loyalty. Research shows that if you can keep the promises your customers want and deliver the experience they want, you will be rewarded with deeper and more lasting loyalty. With the introduction and availability of Social Media tools, organizations can now deliver a much richer and more transparent customer experience than ever before. This improved experience will be vital to an organizations survival and/or growth in the future.
- Tuesday, July 10, 2012
- 0 Comments
by Brian George Brown
Loyalty programs are a creative way to get the attention needed in today's very competitive market. These programs keep customers returning and use word of mouth marketing to increase your customer base. WOM or 'word of mouth marketing' is an essential way to increase business. Rewards program customers are more likely to recommend your business to another.
- Thursday, July 05, 2012
- 2 Comments
Essentials to Customer Loyalty
Every business, whether online or offline, needs customer loyalty in order to be established for the line of work it is trying to be known for. All businesses work hard not just to get a good impression but to make a lasting one of reliability and value that makes them acquire the hard-earned customer loyalty. Especially with industries that are mainly service oriented, having customer loyalty is synonymous to bigger earnings and more opportunities to grow. There are different essential that can pave the road to customer loyalty for businesses.
Link up with other subscriptions
If you are still new to the business, linking up with other more well-established websites related to what you are selling will help you get noticed. The loyal followers of what you are linking up to may also link up on you and conjoin thoughts of your website to be related to that which they faithfully subscribe to. If you manage to invest a certain amount to advertise your site and link up with as many businesses as you possibly can, you are definitely on your way to magnetizing customers and keeping them enamored of your offers.
If you are still new to the business, linking up with other more well-established websites related to what you are selling will help you get noticed. The loyal followers of what you are linking up to may also link up on you and conjoin thoughts of your website to be related to that which they faithfully subscribe to. If you manage to invest a certain amount to advertise your site and link up with as many businesses as you possibly can, you are definitely on your way to magnetizing customers and keeping them enamored of your offers.
Knowing what they need
Of course, your target market has specific personal preferences. You will find yourself at a losing end if you do not incorporate those needs with your business. They will never bother to come back if they are not able to derive anything beneficial and worth their time. The needs of your target consumers are often researched by marketing companies. The information may come with a price, but it is a price worth investing upon if it means that it will make your business more attuned to the needs and wants of your target market.
Of course, your target market has specific personal preferences. You will find yourself at a losing end if you do not incorporate those needs with your business. They will never bother to come back if they are not able to derive anything beneficial and worth their time. The needs of your target consumers are often researched by marketing companies. The information may come with a price, but it is a price worth investing upon if it means that it will make your business more attuned to the needs and wants of your target market.
Incentives and Rebates
Also known as customer loyalty programs, you must also somehow give the illusion that you are giving back. In fact, you are actually giving back some for incentives and rebates. But this giving must not exceed your earning. The rebates and incentives must work to lure customer to buy more and stay longer to your services, and not make you lose all your income. A considerable amount of freebies which will perpetuate and somewhat make them dependent on your products is an effective way to get people to follow your products and give you more leverage to other things you might provide or sell in the future.
Also known as customer loyalty programs, you must also somehow give the illusion that you are giving back. In fact, you are actually giving back some for incentives and rebates. But this giving must not exceed your earning. The rebates and incentives must work to lure customer to buy more and stay longer to your services, and not make you lose all your income. A considerable amount of freebies which will perpetuate and somewhat make them dependent on your products is an effective way to get people to follow your products and give you more leverage to other things you might provide or sell in the future.
Be meaty and Not Fluffy
Never commit the mortal sin of making empty promotions just so you could get their attention. Deception may at first get you the income you need, but you will not find much people clamoring for a second serving. Make sure that if you do give out customer rebates and incentives, it is going to be substantial enough and not a blatant way of trying to earn more income. Trust is valuable to every business. If you can work hard to establish customer trust, you are inevitably going to find them fiercely standing by you.
Never commit the mortal sin of making empty promotions just so you could get their attention. Deception may at first get you the income you need, but you will not find much people clamoring for a second serving. Make sure that if you do give out customer rebates and incentives, it is going to be substantial enough and not a blatant way of trying to earn more income. Trust is valuable to every business. If you can work hard to establish customer trust, you are inevitably going to find them fiercely standing by you.
Make them a priority
This is a no-brainer when it comes to generating customer loyalty. You must make customers feel that you are giving all of your attention to them and make it known to them that you are making efforts to keep them satisfied with your performance. Be as flexible as possible when it comes to making programs. Be as generous as you possibly can with your rebates, and you will find customer generously helping themselves with your services.
This is a no-brainer when it comes to generating customer loyalty. You must make customers feel that you are giving all of your attention to them and make it known to them that you are making efforts to keep them satisfied with your performance. Be as flexible as possible when it comes to making programs. Be as generous as you possibly can with your rebates, and you will find customer generously helping themselves with your services.
Accept criticisms
No business is perfect. Never dismiss a disgruntled and dissatisfied customer no matter how hurtful it is sometimes to receive hate mail. Be as objective as you possibly can and do learn to accept constructive criticisms on the way your business is being handled. Chances are, if too many people are complaining about the same thing and it's making you lose customers frequently, it is something that needs to be addressed immediately.
No business is perfect. Never dismiss a disgruntled and dissatisfied customer no matter how hurtful it is sometimes to receive hate mail. Be as objective as you possibly can and do learn to accept constructive criticisms on the way your business is being handled. Chances are, if too many people are complaining about the same thing and it's making you lose customers frequently, it is something that needs to be addressed immediately.
Mario Churchill is a freelance author and has written many articles on various subjects. For more information on sales incentives or employee incentives checkout his websites.
Article Source: http://EzineArticles.com/?expert=Mario_S._Churchil
Article Source: http://EzineArticles.com/592914
- Friday, June 22, 2012
- 0 Comments
By Aldo Fanelli
One of the most essential goals of promotion is customer loyalty over time. This is because the expenditures of gaining new consumers far outbalance the costs of providing services for existing customers.
A consumer loyalty program is a means to retain customers, and should be used to heighten the communicating quality of a product or service. The customer loyalty programs benefit by customers for repeat transactions.
Loyalty schemes are also a useful tool to getting info about buying patterns and structured, and that their procedure is effective.
Repaying Loyal Customers
Keeping customers is a central goal for any business. Customers happy with the quality of product they get are prospect to keep buying from the same company.
Support the reputation and relationships with marketing programs that reward users for their loyalty. Schemes can take many forms: from discounts or incentives for multiple transactions, to more complex benefits that provide distinct stages of payoffs for consumers who persist in using the service.
Execute a Loyalty Scheme
If you want your customers to feel admired, make them members of a loyalty platform, and grant them treats that reward their loyalty.
Loyalty schemes meet distinguishable goals:
- Customers make regular purchases and the business starts to keep their trade.
- Products have customers that are in a measurable target age group and have the opportunity to sustain them for a lifetime.
- Options to specialise a product or service through the promotion of 'services added advantages' that heighten the basic service or product.
- Elevated opportunities to add value on standard aid services; member users pay an annual fee for a function and the company sustains them as members.
- The brand has a chance to make scheduled offerings to particular consumer groups, with specialised interests.
Offer Real Benefits
You must be certain that the benefits offered by the incentive are useful by customer perception. At best, benefits should reflect the needs of the customer, they should also be given a class of exclusivity.
Discover Implications
Generating a loyalty program can represent a significant investment. The major areas of expense are:
- Recruiting members
- Launch of offers
- Management
- Dissemination of scheme costs
- Employment working schedules
- Organizational database
- Communication Charges (E.g. a phone service)
Effectively Administer the Program
A loyalty scheme requires special administration to be sure that consumers receive the highest standards of service, so consulting in the necessary skills to administrate the platform is vital.
Employing competent resources is requisite to the success of the platform.
The primary activities to be prepared are:
- Ascertain the benefits of the scheme
- Determine the costs
- Nominate a Production Administrator
- Determine consumer preferences
- Preparing a launch plan
- Applying the necessary coaching to deliver outstanding service to the program members
- Distributing a pitch to determine high levels of understanding about the scheme for customers
- Defining the scheme to refine the understanding of users
Loyalty schemes can provide high levels of customer info, which can supply a reliable basis for potential direct marketing campaigns.
Note bearing: capture the user's basic data entry forms from the program to examine the buying patterns of consumers, and utilise that data to expand. Review the reception rates of the offers to club members.
Segment the customer base over durations, to develop planned actions.
Aldo Fanelli is a Marketing Researcher, with a passion for sharing information.
This info is in answer to a collection of queries, and has been collated from advice that has been sourced; with appreciation, the article is also written on behalf of brand loyalty experts, ICLP.
Please contact Aldo if you have any more queries.
Article Source: http://EzineArticles.com/?expert=Aldo_Fanelli
- Friday, June 15, 2012
- 0 Comments
Whether you own a mom and pop corner shop or a worldwide software consultancy, customer loyalty is very valuable to you. Customer loyalty can be loosely defined as the predisposition of any given customer to purchase your goods or services over comparable ones available in the marketplace. When speaking of products (rather than services or the broader classification which includes both) it is often referred to as "brand loyalty." Investing time and energy in promoting customer loyalty should be an integral component of any business' marketing strategy. When business people think of "marketing" in general, they tend to focus on activities targeted at attracting new customers. While expanding your business' customer base is a crucial undertaking which you must work towards with clearly defined goals, the importance of retaining existing customers mustn't be overlooked. Working toward promoting customer loyalty (or brand loyalty) is critical to your goal for many reasons. A few of the most important reasons why customer loyalty is important to your business are outlined below.
Repeat Business
Loyal customers, almost by definition, will purchase your goods or services again and again over time. Depending on what type of business you have and what the sales cycle is like, you may end up selling more to one loyal customer in a year than you might to even 10 first time customers.
Greater Volume
As you build relationships with your loyal customers, it will become increasingly easy to sell to them in higher volumes. This may happen naturally, or you may choose to incentivize the process for your customers. In any case, higher volumes mean greater sales, which translates to higher overall profits.
Cross-selling Opportunities
Customers who exhibit brand loyalty have a relationship with your business. They trust you to provide quality products and customer service. This creates a great opportunity to fulfill more of your customers' needs than the traditional ones you currently meet. What does this mean? You can make sales to loyal customers across product lines and thus increase your overall sales volume without needing to focus so much on attracting new customers.
Protects You From the Competition
The more loyal your customers tend to be, the safer you will be from the draw of the competition. Establishing strong brand loyalty can make you practically immune to competitive forces. This is especially important in places where new players enter the marketplace often.
Word-of-Mouth Marketing
Loyal customers can also bring you new customers. Customers that have great relationships with businesses tend to talk about it. Happy and satisfied customers who keep coming back to you are very likely to refer others who may need your product and/or services.
Benefit of the Doubt
Let's face it; things go awry sometimes - even in the best businesses. Sometimes we get an order wrong, don't meet a deadline, or aren't able to deliver on promises made to customers. In today's economy, it's even easier for little hiccups such as these an others to take place in business. These types of mistakes can damage your business' reputation in the eyes of a new customer. A scheduling error can make your firm seem disorganized and unreliable. This is a very easy way to lose customers. The good news is, loyal customers are much more likely to give you the benefit of the doubt and/or overlook errors. If you maintain the level of customer service and quality that it takes to achieve brand loyalty in the first place, your customers will be willing to forgive you when bad things happen.
Article Source: http://EzineArticles.com/?expert=Amy_Nutt
- Friday, June 01, 2012
- 0 Comments
The first CUSTOMER LOYALTY CONFERENCE AND EXPO is slated
this September 28, 2012 at Crowne Plaza.
The event will be give deeper insights to Loyalty and
Rewards Programs, CRM, Brand Building, Customer Analytics, Social Media
Engagement and a lot more.
The explosion of Customer Loyalty and Rewards Program is
everywhere, from membership cards, reward points, members only lounge and other
myriad of deals and discounts makes it compelling for business to gain insights
on this marketing strategy that is winning the hearts, mind and wallet of the
customers.
International and local speakers will talk about the
different aspects of Loyalty.
The event is an exciting venue to learn, network and, yes,
win rewards!
Call us now for the Early Bird Promo so that you can save a
lot or send more people in your organization.
Call us at tel.no. 6433887.
- Thursday, March 08, 2012
- 0 Comments