Do they really work loyalty programs?

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The mere fact that a company has a loyalty system, does not mean that generates value.


We all know how important a person’s loyalty. This also applies to companies. Only loyalty programs, American companies spend $ 50 billion a year. And if the program is successful, can generate up to 20% of the profits of a company.

So you might think that, given these shares, the companies develop loyalty programs carefully. But surprisingly, the reality does not match the theory. In many cases, companies build basic programs (systems and rewards points), which often do not generate any value, are easy to copy and have no advantage that warrants be loyal to a particular brand above the rest.

Companies often have a habit of setting the agenda and then forget all about it. Resulting programs are not current with changes in the market. Regardless of the customer behaviors change, products change, competitors change.

To succeed today, it is clear that companies need to start adopting new digital strategies, review the old systems, and move beyond the points and rewards.

Creating loyalty programs that IF function

Three recommendations are suggested for a loyalty program can generate high impact and value:

1. Be clear about the objectives.

Two. Identify customers.

Three. Building a program around customers that create value.

A large number of companies are actively thinking about how to build loyalty. We know that is not always a program “formal” is the answer. It is important to ensure that the ideas that we think are aligned to generate consumers, competition and the market.

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He has over 5 years of experience as Online Media and Marketing Consultant, which allow him to enable companies to enhance and meet their Digital marketing goals. He has experience as both in-house and Agency Digital Marketing Experts. Ha has spent the most recent 4 years of his career focusing building Strong terms of Digital Marketing for his clients. In addition to his strengths on Building Brands and Serving Online Marketing strategy for his clients.

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