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Is Your Loyalty Program In A Rut?15 Apr

The objective of any loyalty program is to establish long-term relationships with customers so that they count on the program as they would a trusted friend. New loyalty programs should grow steadily over the first two years, while a mature program should generate inquiries at a monthly rate of 4 to 5 percent. When participation begins to decline, the most common cause is the loss of creative focus on the program. It’s also common for newly launched programs to settle into a rut of self-imposed sameness. Both of these afflictions are easy to fix, with a little creative energy. Simply set as your goal the creation of some kind of surprise value-added offer for at least one segment of your membership base each quarter. Surprise, meaning something different in style and substance from anything you’ve already done. If ROI begins to slip, tackle the benefits structure with fresh eyes and open ears. Talk to members. Ask them what they like and dislike about the program, and what kinds of recognition and reward they wish for.

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Synergy

(from the Greek syn-ergos, συνεργός meaning working together) is the term used to describe a situation where different entities cooperate advantageously for a final outcome.

Simply defined, it means that the whole is greater than the sum of the individual parts. Although the whole will be greater than each individual part, this is not the concept of synergy. If used in a business application it means that teamwork will produce an overall better result than if each person was working toward the same goal individually.

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