ICLP - the global loyalty marketing agency - is an expert in developing and managing frequency marketing programs (programmes).
Frequency Marketing is a term that relates to marketing programs that aim to maintain or increase the 'frequency' of visits, purchases, orders etc. of customers in order to maximise their profit contribution over-time. Such programs, more often termed as loyalty programs (or loyalty programmes), recognise and reward customers based on purchasing behaviour.
A frequency marketing program is a means to an end; it is the means in which companies are able to identify its 'best customers' and once identified, enables companies to recognise and reward those customers in order to keep them loyal. A frequency marketing programme also enables companies to identify potential best customers and market to them. Customer recognition and reward then come into play accordingly.
Frequency marketing programmes need to be innovative and motivating enough for customers to want to join while volunteering information about themselves, such as name and address, therefore enabling companies to identify and communicate with selected customers. The most basic identifying information could simply be a name and an accompanying email address. Rich information, provided on an application for a loyalty card for instance, will give an address, an age demographic, previous purchase information and a whole range of other specific information, such as consumption of media, frequency of holidays, even income bracket.
Every time a frequency marketing (or loyalty) card is used, this identifies the customer, and links relevant transactions to their record. Companies then analyse this data and turn it into knowledge (either on a non-aggregate or aggregate level) and use this accumulated insight to reward customers with the objective of retaining or growing their profit contribution.