While plastic loyalty cards are useful, a comprehensive corporate loyalty program can be a much more effective marketing solution. Keeping existing customers returning to your business is much more cost-effective than trying to acquire new ones, which is why putting a little more time and effort into a targeted communication program is well worth the investment.
So how do you know if your existing corporate loyalty program is working? Understand these metrics and you will have a better sense of the value of your loyalty program:
- How much does the program cost? If you manage the program internally you must include staff, overhead, materials, postage and other costs. However, if you outsource it you can get an accurate budget number and free up staff time for other important tasks.
- How do you measure sales generated by the program? This is one of the most difficult aspects of any marketing expenditure. However, a well executed loyalty program includes sophisticated customer tracking reports and measurable indicators of customer satisfaction.
- How do sales stack up against costs? After you determine how much the program costs, you can easily calculate the cost of the program per customer. Comparing this number to the incremental sales you get each year as a result of the program will allow you to calculate the return on your investment.
One of the advantages of a corporate loyalty program is that you have the ability to turn anonymous customers into trackable ones. This means that, more than most other types of marketing programs, you can more easily measure the impact of your investment.
Any corporate loyalty programs you especially like?
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