growing and retaining existing customers through incentives (customer advocacy marketing) Most importantly and recently referred to as customer experience management Pull out your cards – lay on your desk
Premiums are items that a retail customer can receive by redeeming proofs of purchase from a specific product or store. This was one of the first loyalty marketing programs. Rebate / cash back, discount, points On May 1, 1981 American Airlines launched the first full-scale loyalty marketing program of the modern era with the AAdvantage frequent flyer program.[25] This revolutionary program was the first to reward "frequent fliers" with reward miles that could be accumulated and later redeemed for free travel. Many airlines and travel providers saw the incredible value in providing customers with an incentive to use a company exclusively and be rewarded for their loyalty. Within a few years, dozens of travel industry companies launched similar programs. The AAdvantage program now boasts over 50 million active members.
Polleverywhere – name some cult brands Do they have loyalty programs – do you have a card?
A co-branded programs (credit card) linked to a special consumer interest eg a charity, sports club etc. Your cards – any affinity ones? While you’re looking – any cards you have no idea what you get for it? % of those in your wallet?
A March ACI Worldwide study revealed that 81% of consumers don't know the benefits of the programs for which they've registered or how and when they will receive rewards. The same study found that 40% of loyalty program members had a negative experience when interacting with a program.
Modularity- enabling participants to mix and match aspects to their own preferences
willingness to recommend Should be part of your database
Loyalty is earned not bought – may incentive first time purchase and second, but repeat only comes from Product quality, experience, fulfilment and Satisfying long-term needs Can’t buy me love….
Above all else: simplicity. The fewer rules and restrictions you have, the more engaging your program will be for the customer.
