Why should you invest in a loyalty program? The Nielsen Global Retail Loyalty Sentiment Report gives dozens of reasons why businesses across the world value have well-functioning loyalty programs. If you don’t have one now, you’re missing out on a huge opportunity. An effective loyalty program will motivate customers to visit frequently and spend more with you during each visit. In addition to revenue generated from a core program, with the data collected, you will be able to deliver relevant, targeted promotions to your loyalty program customers, resulting in an additional source of revenue. According to the Nielsen Global Retail Loyalty Sentiment Report (NGRLSR) 72% of customers agree that, if all other factors are equal, they’ll buy from a retailer with a loyalty program over one who doesn’t offer a loyalty program. 74% of loyalty program participants said they’re more likely to be repeat customers of businesses that offer loyalty programs — Loyalty programs give businesses greater levels of customer retention. Customers are also more likely to spend more and visit more frequently. Globally, the top two types of loyalty rewards valued by consumers are product discounts and rebates/cash back rewards. In the United States, rebates were more popular than […]
Tag: loyalty program
The Key To Retention: Incentives
Use incentives to increase retention. Whether it’s your sales force, partners, research panel participants, or employees, retention is an important part of your company’s strategy. The Bureau of Labor Statistics reported that in 2018, 15.5% of workers chose to quit their jobs, with Millennial workers making up half of those who quit. There are lots of reasons for employees quitting, but with a low unemployment rate, it is a workers job market, and companies have to get competitive in both hiring and retention. Incentive programs are a proven method for retention and acquisition. An incentive program shows your people that you value them and increases their engagement and motivation. According to a study released by Bersin & Associates, there’s a 14% higher rate productivity in companies with incentive programs. Additionally, companies with engaged employees have higher rates of retention. It is worth comparing incentive program technology and management software programs before setting up your new incentive program. To ensure that you’re getting what you need for your program, there are several key features you should look for: Extensive Reward Offerings User-Friendly Security Compliance Flexibility Customizable To increase the effectiveness of your incentive program, you should have an extensive […]
Drive ROI through Loyalty Program Incentives
Are you looking for a way to spice up your customer acquisition marketing campaign? Do you need to refresh your current campaign to increase your loyal advocates? Are you looking to add excitement to your recruitment promotion? If any of these fit you, a short-term incentive marketing promotion will benefit you and increase your ROI. If you’re wondering how a short-term loyalty program works and why you need one, it’s quite simple. If you’re in market research and have noticed that, despite having an excellent base of research participants, you’ve started to see a drop off in participation, it may be a sign that your rewards are no longer appealing to your panelists. If your reward offerings haven’t been updated in months, your participation may continue to decline, and if nothing changes, you’ll lose your base. You will need to make an aggressive move to reengage your panelists, acquire new customers, and keep your current customers happy and loyal. The next step to reach your goals is to implement a short-term reward program to introduce new and exciting rewards to your participants via email, text messages, and direct mail. Bring your panelists back to your site and engage them with […]
The Building Blocks of a Successful Panel Loyalty Program
Panel loyalty programs increase research firms’ panelist retention, survey frequency, and panelist acquisition programs, making them foundational in increasing your research firm’s profitability and revenue. An effective panel incentive program can build brand advocacy and increase the lifetime value of the panelists. The four basic building blocks when creating an effective panel loyalty program strategy include objectives, gaining program support, rewarding participants and measuring the program. Objectives There are a few steps you must take when creating your panel loyalty program. Gaining the support of key stakeholders When preparing for a panel incentive initiative, panel managers often face roadblocks in the approval phase of their proposal. Be prepared to show upper management that you have a sound business case, including measurable and accurate metrics. Loyalty incentive programs have proven vital in cultivating and rewarding repeat panelists. You must ensure your loyalty program will be valuable to your key stakeholders. With a strong plan in place with clear financial objectives, management is more likely to understand the benefits of your program and see that it warrants their support. When in the program design phase, take the following steps: Rewarding The Participants There are several types of incentives to select from, including: […]
Increase Genuine Accessory Sales with The Right Sales Promotion
This case study will illustrate how to increase genuine Accessory Sales by implementing a highly responsive sales overlay program that will increase participant engagement by educating participants, using interactive games, and issuing sought-after reward incentives as part of a promotional sales claim process. The case study is an illustrative of the promotion outcome after the conclusion of three similarly situated overlay promotions over an eighteen-month period. The subject of the case study is a leading global automotive manufacturing company that is South Korea’s oldest manufacturer of motor vehicles. Over 1.5 million vehicles a year produced in 13 manufacturing facilities and assembly operations in eight countries. They wanted to run a genuine accessory sales overlay promotion for their dealer partners in the US market. The promotion included sales, service, and accessory departments. The current promotion was not performing and the manufacturer reached out to All Digital Rewards to re-launch the program. Being a valued client of All Digital Rewards, and it was important to take into consideration how the promotion was previously conducted, not confuse the participants, and not lose the component participants had enjoyed – the rewards. All Digital Rewards would have to address the promotions decline over the last […]
Prepaid Rewards Cards – Is Virtual or Physical Better?
These types of cards have become a popular method of loyalty marketing and employee engagement solutions due to their success in engaging businesses and consumers alike. They allow customers to secure their funds, keeping them in one place, and they give businesses access to revenue before a purchase has even been made. Loyalty programs evolve as technology evolves, and prepaid cards are no exception. They began as plastic gift cards to specific merchants, and have since grown to be universally accepted worldwide. However, unlike gift cards, they can be reloaded and do not expire, making them more reliable and versatile. As e-commerce becomes the preferred shopping method for many customers, companies are offering more virtual solutions for online purchasing. With partners like Visa and Mastercard, they are accepted by most vendors, making them easy to integrate into customers’ shopping routines. From the convenience of reloading value to the benefits of budgeting, prepaid cards are popular amongst a variety of customers. Both virtual and physical prepaid cards have numerous benefits with very few drawbacks, which makes them perfect for everything from corporate incentives and sales motivation to performance rewards and customer retention strategies. Virtual cards offer better security, for example, and […]
How To Create Your Own Loyalty Program
The reason you’re reading this post – is it is likely you are curious about how to launch an awesome loyalty program. And it’s not as complicated as you think – so stop worrying. There are great options out there: Well, if you are looking to spend a lot of money and human resources, the do-it-yourself (DIY) route is where that happens. DIY not only takes a lot of money and time, but it also forces you to invest an enormous amount of time into investigating customer behaviors, UX trends, and the how-tos. You may come up with a truly unique idea for a loyalty program, but it could take months – even years – to complete the process on your own. Unless, of course, you have a whole department of developers focused solely on your loyalty program needs, it’s going to be quite an investment. The first step is looking for an agency with experience working in the loyalty and incentive fields. Agencies can help create custom and attractive loyalty programs. Their expertise is in developing programs from start to finish and managing all the marketing communication surrounding the development. There’s one consideration: How much will it cost. The […]
White Paper: Four Key Components of a Successful Loyalty Program
One of the key tools that your company will use in its arsenal to meet important corporate objectives is a loyalty program. Whether it’s retaining or motivating key employees, motivating channel partners, attracting new customers or building brand advocacy, the incentive program design you choose can make or break the desired outcome. We believe that if the redemption process needs to be well managed and easy on your customers. The end user will demand that the payment is quick. With the ease of smartphones and laptops, consumers are educated enough to know there are very few reasons most rebate claims can’t be submitted online. Companies should offer online redemption even though it will increase the number of submitted claims. The benefits of online transactions is a reduction in data entry costs, turnaround time, and increased customer satisfaction. The opportunity to market additional products or services to the customer while they are submitting their information on your website also makes the ease of electronic program interaction quite valuable. If these goals are understood than the long-term payoff is substantially higher than the cost savings of unclaimed rebates. Customers are still looking for deals provided the promotional price is larger than the […]
Reward Redemption Process is Crucial to Good Engagement
At its core, the purpose of an incentive is to impact the behavior of employees, customers or respondents. Any incentive that does not impact behavior or decision making is simply a waste of time and money. Simply stated maybe, but that doesn’t make the statement any less Accurate. As factual as that initial statement is, it does not present a complete explanation of the true role of an incentive. It is true saying that an incentive must impact initial decision making of an employee; customer or respondent the company using the incentive must also take a long-term view of their ongoing relationship with the recipient. A well-structured incentive plan cannot only positively impact initial behavior and decision making but also solidify a long-term (and profitable) relationship with the target audience…or forever end that relationship and likely the disgruntled respondent’s immediate circle of influence. An incentive plan must take into consideration the impact the reward redemption process may have on the long-term potential of the client relationship. Unfortunately, too many incentive marketing agencies are long on innovative redemption processes but short on the vision for the long-term impact they may have on client relationships to their audience. Many key stakeholders focus […]
Cash Vs Blended Incentive Model: What Performs Better?
The following is a case study regarding a leading global market research company’s incentive reward program. They own and operate multiple research panels that deploy different incentives and delivery mechanisms to recruit, engage and retain panelists for research projects and programs. They actively engage millions of members with various client projects and programs. They have been a client of All Digital Rewards since 2012. All Digital Rewards approached the client to move off a pure cash-incentive-spend to a blended-reward-incentive mix of cash, prepaid debit cards, merchandise, and to apply advanced technologies to achieve a reduction in the overall program cash loyalty spend on incentives while at the same time improving customer experience, efficiencies in reward delivery, analytics and reporting. The client agreed to move one reward program to a blended reward mix. All Digital Rewards recommended an incentive program change due to All Digital Rewards operating other loyalty programs for clients with a blended methodology and saving over of 18% or more on their cash incentive spend and felt that if this client applied the same methodologies to their other programs they would realize substantial savings. A cash-based reward program is where the end-user, upon completing a qualifying market research […]
Loyalty Program Do’s and Dont’s
When it comes to loyalty programs, companies are struggling to figure out what works and what doesn’t to inspire loyalty in customers for their brands. Customer incentives have never been harder to define. According to a recent study from Experian, three out of four (75%) U.S. companies with loyalty programs generate a return on investment. This clearly shows a benefit for most companies who spend money on loyalty programs. There is no denying that loyal customers are more profitable than acquiring new customers time and time again. Actually, according to Experian, 69 percent of U.S. companies with loyalty programs track the lifetime value of each customer for an average value of $1,803. However, getting to the point of customers returning time and time again to shop with their favorite brand is easier said than done. Should brands offer fuel rewards? Or would points off groceries work better? Marketers have to get customers involved and eventually have them advocate for their brands by sharing products on social media and referrals! Below is the ultimate marketer’s list of do’s and dont’s of loyalty programs. Customer goal setting is beneficial for setting either a timeline or a call-to-action. This can be done through […]
How To Drive Customer Behavior Better Than Anyone Else
It is difficult to implement loyalty programs to inspire customer loyalty and retention. Loyalty programs that reward participants (customers, end users, members, consumers, or respondents) for behaviors and attitudes can build deep participant advocacy and a sustainable competitive advantage. Today’s consumers need to feel empowered; the customer has to know what is in it for them, not just for the company, and we (the company) drive that empowerment to advocacy. People who have tried to define loyalty usually approach it from one of two different directions- attitudinal and behavioral. Attitudinal loyalty implies that loyalty is a state of mind. This means that a participant is “loyal” to a brand or an organization if they have a positive, preferential attitude toward it. In terms of attitudes, increasing a participant’s loyalty is virtually equivalent to increasing the participant’s preference toward your brand. It is closely tied to satisfaction, and any organization wanting to increase loyalty should concentrate on improving its product, its image, or other elements of the customers’ experience. On the other hand, the behavioral definition of loyalty relies on a customer’s actual actions, regardless of the attitudes or preferences underlying that specific behavior. Loyalty is concerned with the “re-purchase” activity, […]
