Company loyalty programs give customers an incentive to purchase again and again from your business, as well as position your business for up-selling and cross-selling opportunities. But before your business assumes that traditional forms of company loyalty programs, such as rebate programs, discount programs and points programs, are the best way to go, consider the value of implementing a program that utilizes consistent communication over time, which offers key benefits that more traditional forms don’t.
Pros and cons
Assuredly, rebate, discount and point programs are effective, and they offer key advantages for businesses that use them; however, these methods also come with certain negative factors that can inhibit your success.
Pros include:
- Programs are often easy for consumers to understand.
- Incentives drive customers back for repeat purchases.
- Programs can be cost-effective, depending on what you put into place.
- Programs are fairly easy to implement.
Cons include, depending on the incentive offered:
- Lack of instant gratification for the consumer.
- Rewarding customers who purchase and those who don’t.
- The more alluring reward programs can be cost prohibitive.
- Failing to incentivize infrequent customers.
- Competition can easily copy the program.
A creative alternative to traditional programs
There is an attractive alternative to complicated points programs and rebates and discounts. An effective company loyalty program that develops a cycle of communication touch points sent over a period of time can often extend the same benefits to consumers, along with several additional ones, including:
- Ability to incorporate lead generation and cross-selling techniques, and referral requests
- Educating consumers about your products and/or services
- Building your authority as the go-to company
- Evoking an emotional response on the part of consumers
- Developing trust between you and your customers
- Building your brand
If you’re interested in going beyond traditional forms of company loyalty programs, and you want to reap the benefits of innovative programs, consider the following two steps.
First, develop a program that works by considering the program’s:
- Objectives
- Its target group(s), and the needs of the group(s)
- Ability to reach customers using the most appropriate media
- Means to report results and analytical information
- Ability to set you apart from the competition
Then, contact Continuity Programs, and get more information about our proven company loyalty programs. Our turnkey solutions are customizable to your business’ brand, and we can personalize all touch points to effectively showcase your salespeople and products/services.
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