Smart Shopping: Savings from Reward Cards

Not only are customer loyalty programs great for helping businesses retain and satisfy customers, but they are also a great way for customers to save money. People are always looking for the best deals possible, so being able to redeem points you have collected from purchases you bought and in return receive store credit is a great saving tool for those of you who are cost-efficient. Through reward programs, members are able to earn large amounts of savings if they continuously collect points on their reward cards. 

The entire concept is a win-win situation. Businesses benefit from these programs as they convert shoppers into loyal customers, whereas you benefit from receiving incentives and perks that come along with the rewards program. If customers shop smart, you can take advantage of these amazing savings!                                                               
                                                                                                              
In addition, customer loyalty programs are becoming increasingly valuable to many Canadian shoppers. In fact, with more and more companies implementing loyalty programs, it is turning into a trend that many Canadian retailers have or are beginning to adopt. According to the 2013 COLLOQUY Loyalty Census,
“The average Canadian household is a member of 8.2 loyalty programs”.   

For the cost efficient shopper, here are a few Canadian retailers/ services that provide loyalty programs for their customers:

1.      Air Miles

2.      Shoppers Optimum

3.      Canadian Tire Rewards/Money

4.      Aero Plan

5.      HBC Rewards/ Hudson’s Bay Rewards

6.      PETRO-POINTS

7.      Scene

8.      Club Sobeys

9.      CAA

10.  PC Points/PC Plus

THOUGHTS: Do you follow or notice the savings you receive when using your rewards card?

 

Different Types of Customer Loyalty Programs

Along with reward programs, there are other different methods of retaining customers. Four different types of successful customer loyalty programs are: membership programs, reward programs, creating a community, and creating a specialized business.

1.      Membership Program: membership programs are a great way to retain customers as most programs provide special incentives to those involved. Customers usually purchase a membership to gain access to a company’s products or services. In order to continue using or purchasing these amenities, members will continue to pay for their membership weekly, monthly, or even yearly. Here are a few examples of membership programs: gym membership, Costco, library card, and interactive online video games (Xbox live).

2.      Reward Program: reward programs provide customer incentives from collecting reward points and are earned according to the amount of business you do. In most cases, reward programs are implemented through point cards, where members gain points from each purchase made. You are able to redeem your points whenever you would like and in return most businesses will provide you with store credit to continue purchasing product. Reward programs are valuable because they drive customer satisfaction by giving you a reason to continue doing business with a company. Here are a few examples of reward programs: Air Miles, Shoppers Optimum, Scene Card and PC points.

3.      Community and Specialized Business: creating a community or a specialized business are informal types of customer loyalty programs. They are not applicable to every type of business and may only be targeted towards particular customers.

a.      In a community, businesses create personal relationships you. This relationship is vital for businesses to retain loyal customers. An example of a community type of loyalty program is Michaels the Arts and Craft store. Michael’s partners and supports various not-for-profit charities such as Crafting for the Cure- a charity that supports children with cancer. They also offer different crafting and cake decorating classes that are taught in store. From these programs and classes, the company is able to retain customers by being actively involved within the community.

b.      A specialized business is a business that focuses on a particular service or product. Unlike the other types of programs, specialized businesses are not so much a traditional loyalty program, however are effective when retaining and creating loyal customers. This method consists of having a specific product that is essential to the customer and must be replaced or updated every so often. An example of a specialized business is Norton Anti-Virus. The company serves to protect computers and hard-drives by providing anti-virus software. The exception is that the software has an expiry date at which it must be re-purchased and renewed at the end of its usage. However because of the increase in internet usage in businesses and everyday life, more customers are looking towards regularly installing these programs to protect their computers against any hazardous viruses. Therefore the company is able to retain customers as their product will always be needed. 

Shoppers Drug Mart: Shoppers Optimum



The pharmacy chain Shoppers Drug Mart rewards their customers through their shoppers optimum rewards program. The loyalty program offers you 100 points for every $10 you spend. Customers are able to earn points from purchasing most everyday items and may redeem them on purchases in store. Shoppers Drug Mart also regularly holds events for bonus point collecting. This is when the company provides special bonus points for members purchasing specific items in store. Members are able to earn points on their card at any Shoppers Drug Mart and may redeem these points at any time online. The company also provides their members with mailed and online flyers, where they offer coupons and further rewards based on your specific purchases in store. The company gathers data on your purchases and provides extra bonus point coupons to collect more optimum points as well as continue shopping in their store.
 
THOUGHTS: If you are interested in signing up with Shoppers Drug Mart's loyalty program, click on the hyperlink and enjoy shopping smart!
 

The Developement of Successful Customer Loyalty Programs

We know that loyalty program are great marketing tools for businesses trying to retain customers, however do you know how these programs are created? Or what it takes to develop a successful loyalty program? In fact, the process takes place over the course of several years through which businesses convert you into loyal customers. During this development process, it is important to create a list of guidelines and questions that can assist in implementing the loyalty program. This may include:
 
·         Evaluating the product
 
·         Identifying the value of the reward
 
·         Creating program goals
 
·         Determining the cost of the program
 
·         Developing communication outlets to market the program
 
·         Determining the individuals required in the organization and management process
 
·         Setting up a database
 
·         Preparing a strategy for program defects
 
WATCH: The following video demonstrates and explains how to implement a successful customer loyalty program.
 
 
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In addition to the above guidelines, there are three basic criteria in creating an effective loyalty program. These are: management support, customer communication, and automated databases.
 
·         Management Support: In order to create a successful loyalty program, it is important that top management ensures each member of the business is informed and supportive of the program and process involved.  Management is required to begin the developmental stages of the program such as creating goals and setting up the program database. The entire process is ongoing and long and may take up to 2-3 years before completion therefore during this process management must display patience and support.
 
·         Customer Communication: Participation from customers is crucial to jumpstarting any loyalty program, thus it is important to communicate regularly and effectively with its participants. Businesses must motivate you to come and shop at their store with the difficult task of converting you into a loyal customer. When creating loyalty programs, it is crucial to make sure that the value of the reward will effectively satisfy and excite the customer. Therefore clear communication is important to properly introduce the program and its incentive to buyers.
 
·         Automated Databases: Almost all loyalty programs include an automated database that tracks member’s information, purchases and cumulative points. The database is usually created through the internet, where it can be easily accessed through the businesses website. The purpose of the database is to collect, monitor and evaluate the information coming in from members and their purchases, in order to better accommodate members and retain their loyalty.
 

Air Miles: Reward Miles

 
 
Air Miles reward miles is a points program that was launched in Canada in 1992. Points are earned from purchases at different participating stores and can be redeemed as movie tickets, kitchen equipment, electronics, dream vacations and much more. You are able to earn reward miles from a variety of different companies such as Metro, Bank of Montreal, as well as Michael’s. There are more than 120 participating partners in Canada where you can earn reward miles from- making shopping more fun! With an Air Miles rewards card, you have the option to choose how you would like to collect your points. With the company’s new program, members are able to decide whether they would like to save their points towards cash rewards or dream rewards. The cash rewards enables members to instantly redeem your Air Miles reward miles when shopping at participating sponsor locations. Whereas the dream rewards gives members the opportunity to save their reward miles for luxury and leisure items. This includes electronics, entertainment, personal care, leisure and outdoors, as well as flights and vacations. The amount of reward miles earned at a sponsor location may vary between each store. If you would like to find out more about the different sponsors, this information can be found on the Air Miles website. So take advantage of these great offers and earn even more by signing up with Air Miles reward miles.

THOUGHTS: If you are interested in signing up for an Air Miles rewards card, click on the hyperlink and enjoy shopping smart!

Customer Loyalty: Is it more than Rewards?

Customer loyalty programs are great tools for businesses that are trying to create a long lasting relationship between you and them. They serve to improve customer satisfaction by giving the customer an incentive to continue shopping at their store. But is there more to customer loyalty than giving customers a rewards card? There are other important factors that come into play when businesses try to build customer loyalty. For instance, in order to gain a foundation for customer loyalty, businesses must take into account the customers experience from beginning to end. The interactions made between you and the people representing the company are important when trying to create a relationship with customers and providing them further satisfaction through loyalty programs.

In this video, Jack Dempsey (CEO of Pretium Solutions) discusses how real customer loyalty is created through personalised customer interactions between you and the people acting on the company’s behalf.


 

It is obvious that customer loyalty is not created from programs that reward you for doing business with companies, however the service provided to you by them. Loyalty programs are a good thing to note for businesses trying to retain customers but before they can offer that they must ensure that they have an established customer following and that they are continuously providing excellent customer service to their cliental.
 
Here are some things I watch out for to see if I have been served good customer service:
 
·         Were you greeted?
 
·         Were you asked for help?
 
·         Were the representatives knowledgeable?
 
·         Were you provided fast and friendly check-out?
 
Next time you go shopping, try and see if everything on the list was provided and then leave a comment discussing your experience.
 
THOUGHTS: Would you sign up for a loyalty program even though the customer service was not adequate?  

Calvin Klein: Preferred Membership Program

 
 
The clothing company Calvin Klein rewards their customers by giving you money back when purchasing their products. The company’s Preferred Membership Program is a rewards card that offers you $25 dollars in store credit for every $250 dollars you spend. The card is free when you sign up and as an extra bonus they email a 20% off coupon for your next entire purchase! The card can be used at any Calvin Klein store in Canada as well as The United States. The company retains its loyal customers by providing a card that in return provides you store credit to continue buying merchandise at their store. Furthermore, Calvin Klein rewards their customers by emailing promotions and coupons as well as having special evenings where they offer members special discounts and provide them refreshments.

THOUGHTS: If you are interested in signing up with Calvin Klein’s reward program, click on the hyperlink and enjoy shopping smart!