Loyalty cards business plan

For information on historical loyalty programs, see Loyalty marketing history. By continent and country[ edit ] Hong Kong[ edit ] Hong Kong offers many loyalty programs. Malaysia, Singapore and Hong Kong. Retailers accepting the card include:

Loyalty cards business plan

In the early s, American Airlines decided it wanted to take the idea of nurturing its customer base a big step forward and give fliers something extra special. The airline created the first frequent flyer programs that allowed travelers to accrue miles for future flights — as long as they kept flying with American Airlines, of course.

The program was one of the first widely accepted customer loyalty programs in the country, and it set up a framework that became a standard not just for the entire industry, but also for what customers expect from airlines.

Today, customers are accustomed to seeing rewards in myriad forms at businesses large and small. Your credit card also probably offers you some payback the more you spend.

One of the ways you can make your customer relationship more sticky is through a well-planned and well-executed reward program. Customer loyalty experts offer the following tips on how to start your own program. Starting a Customer Rewards Program: Is it Right for You?

Does it make sense for your business to offer a loyalty program? For retail stores, restaurants, and travel companies, maintaining a customer rewards program is almost a necessity to stay competitive because programs are so widespread in those sectors, Cottle says.

A business that deals with customers on an infrequent basis, such as a repair service or landscaper, might not be able to pull in enough return visits to warrant offering a discount or other loyalty bonus, says Donovan Neale-May, executive director of the Chief Marketing Officer Councila clearinghouse for ideas on relationship building and leadership among major marketing leaders, which is based in Palo Alto, California.

A tax attorney, for instance, can use a rewards program or loyalty discount to encourage customers to refer more clients, Neale-May says. Your company should have a little bit of data on your customers already before deciding to start a loyalty program.

How much are your best customers spending on average? How often do they use your services? Most companies first identify their most loyal customers, who are usually the top 10 percent most frequent or profitable patrons.

Targeting them makes more sense than offering something like a broad discount for all patrons, experts say. What Should You Offer? Now you need to figure out what kind of incentives you are going to offer customers.

Loyalty program - Wikipedia

Will it be a club card that provides a discount with every purchase? A points program that lets patrons cash in their loyalty for goods and prizes?

Should it be something free or an item or service only available through a paid subscription?

loyalty cards business plan

The kind of program varies depending on your type of business, but experts say some general tips apply to everyone. Physical prizes or earned bonuses like frequent flyer trips resonate much more, Konsewicz says. The ultimate goal of your program should be to underline your overall brand strategy.

Starbucks, for instance, is able to lure people into its shops on a regular basis thanks to its ambiance of sociability, and a rewards card that accumulates points with each purchase. You should figure out which relationships are most important for your business and design a rewards program that cultivates those customers, says Michael Hemsey, president of Kobie Marketingwhich has worked with Verizon, Samsung and Lucasfilm.

What about dollar-value of purchases? Would you rather be a company that delights clients with surprise bonuses or upgrades? Two other big issues should shape your decision: What your competitors are doing, and how much your company can afford to spend on the program.

Loyalty program - Wikipedia

Neale-May recommends researching your competitors and creating a program that either mirrors others, or one that distinguishes itself by offering something unique. This works even for smaller businesses: Programs where customers earn points are best suited for services where lots of transactions are involved, such as a credit card, Hemsey says.

Restaurants that might see the same patron once every month or so are better off just offering a free drink or instant discount to loyal customers, he says.

Some companies, such as Barnes and Noble, charge a fee for reward membership programs. But a program that comes with a sign up cost has to have a clear and appealing set of rewards, like flight upgrades for airlines or access to VIP events for retailers. Communicating With Customers Making sure customers know about your program is a key factor to its success.

At most retail stores, cashiers will ask customers if they want to participate. Professionals say companies should use the full extent of their communication arms to spread the word, through e-mail, newsletters, and website updates. Your employees should be ambassadors for the program too, Hemsey says.Customer loyalty or reward programs can help you to build a customer base that will continue doing business with you.

Keeping existing customers is often easier and more cost effective than trying to attract new customers to your business. Aug 29,  · We take a look at the gamification behind cards and other methods brands utilize to engage customers.

loyalty cards business plan

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PRODUCTS & SERVICES In the early s, American Airlines decided it wanted to take the idea of nurturing its customer base a big step forward and give fliers something extra special. The airline created the first frequent flyer programs that allowed travelers to accrue miles for future flights — as long as they kept flying with American Airlines, of course.
Helping you grow your business, build loyal customers relationships & manage the details This completely customizable marketing solution offers consumers points that are redeemed online for a variety of music products. Companies are able to customize their point offers completely.
Customer loyalty or reward programs | metin2sell.com Customer loyalty or reward programs Last Updated: A customer loyalty program encourages your customers to be loyal by offering incentives for customers to do repeat business with you.

Templates. The Gamification Behind Loyalty Cards. by: 4/5(1).

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Loyalty cards (both physical and digital) relate to the loyalty business-model. Cards typically have a barcode or magstripe that can be easily scanned, although some are chip cards or proximity cards. Of course, loyalty programs have been around for ages (toys in Happy Meals, buy-one-get-one-free perks, come-back coupons handed over following a purchase, or credit card points).

But, customer loyalty programs and other retention tactics are as much about customer service as they are about rewards. This business plan was created for a customer loyalty program which capitalizes on the Internet surge in digital music.

It was directly responsible for the owner receiving $3 million in capital to begin his company. Of course, loyalty programs have been around for ages (toys in Happy Meals, buy-one-get-one-free perks, come-back coupons handed over following a purchase, or credit card points).

But, customer loyalty programs and other retention tactics are as much about customer service as they are about rewards.

Top 20 Loyalty Reward Apps For Small Businesses