loyalty program - definition
ICLP – the global loyalty marketing agency – is an expert in developing and managing loyalty programs (loyalty programmes).
A loyalty program (or loyalty programme) is a means to an end; it is the means in which companies seek to identify their best customers and once identified, enables companies to communicate with them actively in a drive to foster brand loyalty. A loyalty program (or loyalty programme) also enables companies to identify ‘potential’ best customers and recognise and reward them accordingly too.
The term ‘loyalty program’ can, however, sometimes seem too formulaic. A better term is ‘loyalty marketing initiative’ as given the advances in loyalty marketing technology a ‘loyalty program’ doesn’t have to look and feel like a ‘me-too’ offering. On the contrary, the loyalty program should be innovative and motivating enough for customers to want to join while at the same time volunteer identifying and demographic information therefore enabling companies to identify and communicate with selected customers. Desired information comes in the form of names linked with email addresses, telephone numbers, addresses, age, sex, and more specific information such as income bracket, family make-up, size of household, employment, property details and any other information that could help a marketing department reach and target their customers with relevant initiatives.
In recent times, companies provide customers with a “loyalty card” which rewards holders for repeated purchases with, e.g. points or vouchers. At the same time, every time a loyalty card is used, this identifies the customer and links relevant transactions to their record. Companies can then analyse this data and use the resulting insights in order to recognise and reward customers with the objective of retaining or growing their profit contribution.
To find out more about loyalty programs (loyalty programmes) and how ICLP can help your business, please visit ICLP-the global loyalty marketing agency.