Loyalty programs are hot. Jupiter Research estimates that two-thirds of online retailers will have a loyalty program by the end of 2006. And B2B isn't far away.
If you are thinking about launching a loyalty marketing program, here are five key concepts you need to know:
- Whatever you have budgeted for training isn’t enough. Start building a relationship with your operations and HR departments now because you will need them to sustain training and focus over the long haul.
- Promotional offers should account for at least 10% of your reward expenses.
Using a program’s accrual mechanism (points or otherwise) as a promotional currency—say, offering double points rather than a straight discount-- can generate some of the best results. - A few great benefits are better than many average benefits. Most marketers know that a message that makes one point is much stronger than a message with several points. But many seem to forget this when designing loyalty programs.
- Testing can save your job. As much as you think you know about your customers, when you put a loyalty program in front of them, you can’t be certain how they will react. Testing multiple concepts simultaneously is strongly recommended.
- Positive ROI usually comes in the second year. Start-up costs, initial enrollment rates, and rewards expenses all may vary widely, but most programs take a year to reach critical mass.
Hi. We have really everything in common with America nowadays except, of course, language.
I am from Sweden and , too, and now am writing in English, give true I wrote the following sentence: "401k investment advice v education."
Thanks for the help :-), Nafuna.
Posted by: Nafuna | September 08, 2009 at 04:58 PM