Loyalty programs work to grow your database, increase sales and gain repeat customers. It is tremendously more economical for a company or organization to maintain a customer when compared to the cost associated with acquiring new customers.  Furthermore, repeat customers generally spend more.  According to a Hospitality Research Study, loyal members spend an average of four times more than first-time customers.

Additionally, the research has shown that loyalty members will visit your website 50% more often than non-loyalty members.  When it comes to managing a good loyalty program, it pays to always think of the customer’s point of view. If you think they’ll be pleased to receive a message or offer from you, it’s probably worth sending.  You can create messages to your loyalty program participants based on their past buying purchases – ensuring you’re offering them relevant information that they’re likely to be interested in purchasing.

We’ve established that loyalty programs can build your database.  By tracking what a consumer purchases and when they purchase helps you understand what they’d be interested in in the future and when they’d be most likely ready to buy again.  Ultimately, it helps you communicate with the right kind of customer, one who will be more likely to buy.

Loyalty programs also develop your brand.  Building a reputation takes time — your loyalty program customers will be around long enough and communicate with your brand often enough to develop a relationship between your brand and your target audience.

Finally, loyalty programs boost your other marketing efforts.  Through the use of loyalty program databases you can increase your marketing consistency, your message relevance and your brand’s recognition.  When your loyalty members are exposed to your other, outside marketing communications, they’ll be more likely to take notice and retain your brand’s message.

Timothy Freeman
President
Print & Graphic Communications Association