Consumers are getting a little burned out on loyalty programs. They still sign up for these programs, but they aren’t using them like they used to.
Tag: loyalty programs
How Your Clients Can Make Loyalty Programs Pop
Are loyalty programs the new must-have marketing tool for businesses? In the era of personalized marketing, these programs seem to be mandatory.
How to Help Clients Make the Most of Loyalty Programs
Your clients likely know that keeping a customer is less costly than scoring a new one. If your clients want to keep customers AND add new ones, they need to enhance and promote their loyalty programs.
Hotels and Motels Ramping Up Loyalty Programs
As we enter the busy travel season, hotels and motels will be competing for their share of the leisure travel market. One form of industry marketing, loyalty rewards programs, has been particularly popular among providers recently. But, are these programs delivering benefits that add to the bottom line? Research from Cornell University’s Center for Hospitality Research suggests these programs are yielding big returns, especially when they target a specific type of guest.
Relevant Communication Essential to Good Loyalty Program
While enrollment in loyalty programs continue to rise across all retail categories, relevant communications are increasingly essential. Participation in loyalty programs does not necessarily translate to genuine loyalty. Consumers are also concerned about privacy when weighing whether or not to sign up for a loyalty program.
Marketers to Use Virtual Wallets to Manage Loyalty Programs
Earlier this year, tech experts who talked with CMO.com writers predicted that 2013 would see progress on the digital wallet front. This progress was expected to be especially true for marketers who wanted to set up a digital loyalty program through a smart app. Consumers would be able to take out their smartphones and use apps to accrue points or rewards and then apply them to product purchases in the future. In a surprising turn, consumers seem to be ahead of retailers on this front.
Retailers Change up Marketing to Fight Showrooming
Retailers see it every day. A shopper comes into the store, takes out his mobile phone and starts comparing prices. In too many cases, the showrooming behavior leads the shopper to buy the product online. But retailers have ways to fight back, say the analysts at Aimia.
Marketers to Invest in More Membership/Loyalty Programs
One way for marketers to position themselves favorably with consumers is to offer loyalty or membership programs. In the past 10 years, marketers have nearly doubled membership programs while the number of programs each consumer household belongs to has increased 50%. Industry-wide, there are over 2 billion memberships.
Marketers to Rethink Loyalty Programs to Improve Consumer Sentiment
Marketers in industries ranging from shoe stores to automotive services have launched loyalty programs to induce consumers to keep shopping with them. Many loyalty programs also offer marketers valuable insights into consumer behavior. But a newly released study finds consumers may be on the verge of reaching loyalty program burnout. Marketers will likely be taking steps to improve their programs to retain their more loyal customers.
Instant Redemption Opportunities Attract Loyalty Program Participants
When it comes to consumers choosing one loyalty program over another, nearly half (47%) of consumers polled said that instant redemption opportunities – such as cash back at the register – were an incentive that could potentially entice them to use a particular loyalty program more than others, according to recent research by Mintel. Sixty-one percent of respondents say lower overall costs for merchandise they would have purchased anyway is an important attribute of a loyalty or rewards program. “In any sector that utilizes loyalty marketing, loyalty programs are fast becoming a very important part of the relationship with the customer,” says Susan Menke, VP, behavioral economist at Mintel Comperemedia. “It seems that now is the time to focus on adding or improving loyalty programs to help engage customers and maintain and even grow their relationship with the post-recession consumer.”
Personalization to Drive Value of Loyalty Programs
Marketers believe the $2 billion they spend annually on loyalty programs ensures participation by their best customers and builds the platform for higher sales. A report by the Chief Marketing Officer Council shows there is room for improvement. Marketers are not always measuring the results of their expenditures on these programs and they aren’t always listening to what the customer is saying.
Loyalty Programs for Cosmetics Shoppers Increase Sales
For many years, women who wanted quality makeup and perfume products had to endure the high-pressure sales pitch from the person behind the counter at upscale department stores. These days, women have less time than ever to shop for beauty products but doesn’t mean they don’t want access to a wide range of products. Several retailers have obliged time-pressed shoppers with new delivery models for cosmetics and they have found that tweaking marketing efforts such as loyalty programs makes a difference when it comes to increasing sales.
