Build a Strong Business Foundation, Then Loyalty Marketing Works!

Posted by Brent Harms on Wed, Mar 20, 2013 @ 03:10 PM


Over the years, it is apparent that loyalty programs, if carefully designed and continually enhanced, are effective in driving sales and reducing customer attrition.   But before you go out and start a loyalty marketing program, you need to do a lot of things well and plan carefully.   

 Retail loyalty, loyalty marketing

First, the basics of building a strong business foundation are critical before you consider loyalty marketing.    This includes ensuring that customer service meets or exceeds expectations, you have great products and services, and your pricing is competitive.   


With these building blocks in place, you are in a great position to take advantage of the power of loyalty marketing.    This can set you apart from your competitors and give your customers a reason to buy more and continue to frequent your business.    So, how does this work?   What should you do?  Here are some suggestions:


    1. Make it easy for customers to participate.  Get your customers' permission to market to them by giving them a reason to “opt in”.  A strong communication plan provides great offers or information that customers will find valuable.
    2. When you communicate to your customers, make it easy for them.   Ask them how they prefer to receive updates and offers (mail, email, text, or social).   Then make sure your tools give you the ability to manage those preferences and always ensure that privacy rules are followed.   Without this, the communications to your customers will be ignored; or worse, they will be upset with how you are marketing to them and may ultimately stop visiting your business.
    3. If you decide to implement a loyalty or rewards program, consider the following:
      •  Ensure the benefits are meaningful for your customers.  
      • Understand the financial costs of these rewards so you do not create a situation where benefits are taken back since that can create a lot of customer frustration.
      • Make sure it differentiates you from your competition.  
    4. Keep it simple.   If it isn’t simple, your staff won’t support and promote the program, your operations will be negatively impacted, and your customer won’t participate because they don’t understand how it works.    Like many other operations in your business, ongoing training is critical as well.


      Find the tools that make it easy for you to run a loyalty marketing program.  Technology today has put all of the power at your fingertips.  Now you can design and initiate emails and texts.  You can easily track all purchases and promotions at the customer level and really know how to target your marketing efforts.  Loyalty marketing give you information that will help you grow.   Look at any successful business and you will see this as a key to their loyalty marketing efforts.  Check out our Simpli all-in-one marketing tool to see if it could meet your needs!


      Hope these ideas help you grow your business this year!

      Brent Harms

      Founder & CEO of Tecmark


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      Tags: Loyalty Marketing, Tecmark, Customer Experience