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?
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.
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!
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.
.
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 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 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?
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!
With the endless amount of options when it comes to shopping,
it is becoming increasingly more difficult for businesses to attract and retain
loyal customers. The purpose of customer loyalty programs is to provide you an incentive to continue shopping at
a store. You are not going to wake up one morning and say to yourself, “From
now on I will only buy my coffee at Starbucks and nowhere else”, and not have a
reason for it. This is why many stores are now adopting customer loyalty
programs, to reward their reoccurring customer’s special discounts, coupons as
well as store credit- with the hope that they will form long lasting
relationships with you.
Loyalty programs not only benefit customers by providing you
special promotions and deals but they also provide many benefits to the
companies as well. Loyalty programs help:
·Retain customers
·Increase frequency of referrals
·Increase sales and profits
·Enhance customer relationships
·Acquire new customers
When you sign up with a loyalty program, it can easily
sway your decision in purchasing specific stores products in order to receive the
benefits, promotions or deals to be used at their stores.
Overall, customer loyalty programs are created by retailers
and companies to satisfy their reoccurring customers as well as attract new
customers to their stores.
THOUGHTS:
Do you think customer loyalty programs are useful? If you were part of a
store’s loyalty program would it make you shop at that specific store more
frequently?
Do you have any thoughts, questions, concerns? Leave me a comment and we can continue the discussion.
