| Rewarding Customer Loyalty: | | | | discounts?oExcellent Quality and Service - What do |
| Doing Your Homework before Beginning a Loyalty | | | | your customers say about your quality and service? |
| Card Program | | | | What has been their experience when dealing with |
| By Carol Bartelt, Director, Corporate Communications | | | | your business? Don't assume that the lack of |
| Increasing customer loyalty is more critical than ever | | | | complaints is equal to a satisfied customer |
| for your business. According to a recent study by | | | | base.oConvenience - Do your customers feel positive |
| Adjoined Consulting and SAS, the number of shoppers | | | | about how easy it is for them to interact with all |
| who defined themselves as longtime loyal customers | | | | aspects of your business? |
| dipped to 77% in 2006 from 84% in 2005. That trend is | | | | Once you've gathered feedback from your customers |
| continuing. | | | | in these categories, you can decide what kind of |
| What is a loyal customer? The answer varies by | | | | loyalty program will work for you. It's important to |
| business type but clearly it's someone who will | | | | consider a wide range of options before launching a |
| continue to buy from you regardless of price; | | | | program. These options may include:oEarning points |
| someone who is getting something from you that he | | | | toward rewards or free or discounted |
| or she is not getting anywhere else. How can you | | | | merchandiseoUsing third-party partner currencies, such |
| keep your customers and reward their loyalty? A | | | | as airline miles for retail purchasesoOffering rebates or |
| Customer Loyalty Card Program may be your | | | | discounts for using a store-branded credit |
| answer. | | | | cardoProviding information that is relevant, valuable and |
| Before you begin to create a loyalty program for your | | | | exclusiveoAllowing members access to products, |
| business, you will need to understand what motivates | | | | services and experiences otherwise unavailable to the |
| your customers. How do you find out? Ask them! A | | | | publicoRecognizing best customers with "elite |
| Point of Sale survey or an online survey may net very | | | | status"oInviting customer involvement in opportunities |
| valuable information to help you think through what | | | | such as first access to new products |
| your program should include. | | | | (Source: Kate Baumgart Hogenson, 2005) |
| Below are four essential categories of information | | | | The right program for your business may be a blend |
| you'll need to know about your customers before | | | | of some of these approaches once you understand |
| designing your loyalty program:oRecognition/Status - | | | | the unique needs and preferences of your customers. |
| How do your customers want to be rewarded for | | | | View the development of your Loyalty Program, as an |
| their loyalty to you?oDiscounts and Rewards - Will | | | | opportunity and an invaluable way for you to better |
| your customers respond to coupons or | | | | know your customers. |