The Loyalty Programs That Aren't A Waste of Time and Ink to Sign Up For

LOYALTY PROGRAMS That Aren't a Waste of Time and Ink to Sign Up for %24 Finding Harmony in Customer to Business Relationships WHAT IS A LOYALTY PROGRAM? A loyalty program is a system wherein retailers or service providers offer rewards to customers who repeatedly use their services or purchase their products. That's the loyalty program in a nutshell – now let's get into the specifics. WHY DO THEY EXIST? Common logic dictates that a business can make more money in two ways: Loyalty programs get existing customers to buy get new or exist because customers they make good business more stuff. sense. You might be surprised to hear that getting new customers is really really hard. According to a paper written at the University of California, Berkeley, most businesses jump for joy if even 1% of their targeted audience responds to promotional campaigns like catalog mailings or expositions. If you're not a business owner... A proven way to do that is to establish a program The solution, therefore, is to do the other thing - get existing that rewards customers for repeated purchases, or encourages them to make purchases that will produce a profit for the business. customers to buy more stuff. BUT WHAT DOES THIS МEAN What this means for you These benefits range from is that by participating in certain rewards FOR ME, THE CONSUMER? saving money on select purchases, programs, you can reap a lot of impressive benefits. getting free stuff, and becoming eligible for new services and benefits. V. BUT WAIT! SLOW DOWN! Isn't that just playing Woah, woah, slow down there. Make no mistake, into the hands of these businesses that want businesses definitely benefit to make more money? I'm nobody's from your participation in their puppet! loyalty programs. But so do you, right? By refusing to take part in loyalty programs, you're only hurting yourself by remaining ineligible for purchase savings, free stuff, vacation opportunities, and more. In this crazy game called capitalism, it's to both your benefit and the benefit of the business to participate in a loyalty program. Well... sometimes. You definitely shouldn't Some programs are sure bets, while others are just sign up for every program blindly. a waste of time and ink. LOYALTY PROGRAMS AND DATA Let's talk about data. Loyalty programs benefit businesses in another way IDENTITY CARD that you might not even be aware of. Think about the last time you signed up for a loyalty program. What kind of information did they ask for? For you the customer This serves a useful purpose - if you ever need to contact someone about your account, you can be identified. For the business This means that they get Rewards cards and programs sometimes track your spending to see what you buy, when, and in what quantity. some information on their customer base. Businesses can use this information to do things like offer you deals based on your purchases, or send you special offers if they notice you haven't shopped with them in a long time. WHAT ARE THE TRAITS OF A WORTHWHILE LOYALTY PROGRAM? All you have to do is keep these three traits in mind when evaluating a loyalty program and you're sure to find a winner. Responsible Use of Data Easily Understood Great Value Benefits Remember, loyalty Some programs spell out your benefits right up front – those are You have to choose how comfortable you are with how your data will be used. You usually have to sign something programs benefit both you and the business. the ones that are worth consideration. to become a member of a loyalty program. Whatever you sign probably If the program involves a point system, it's especially important that there's an easy way for you to convert the money you spend into the "points" you earn. The more you Your job is to make sure has information on it that the program benefits about how your data you just as much as them. will be used. Check out the rewards, If you're not comfortable with the way your data might be used, don't sign up for the program! check out how you earn them, and make sure that you won't be spending understand, the better thousands of dollars to earn paltry $25 rewards. you can take advantage of potential benefits. HERE'S SOME EXAMPLES OF LOYALTY PROGRAMS THAT ARE WORTH IT NAME OF BUSINESS NAME OF PROGRAM THE BENEFITS This is a pretty standard, easy to understand program. For every $100 spent, you get a $5 reward. Petco Pals PETCO Rewards You can redeem your reward on your choice of product. You also benefit from pricing reductions and targeted coupons and savings. Where the pets go Three tiers based on how much you spend at Macy's every year. Macy's Star Rewards *macys You have to sign up for a credit card and pay a one-time fee to gain access - but with responsible spending and monitoring, the benefits are superb and include: special mailing offers, birthday rewards, shipping offers, surprise offers at register and more depending on your tier. CVS ExtraCare Rewards Members earn 2% back on all purchases in Extrabucks Rewards which can be spent on any items in the store. Along with this, members also qualify for additional savings on weekly sale items. CVSHealth Earn points for hotel stays, participating with partnered businesses, or taking advantage of bonus opportunities. Marriott Rewards Points convert to dollars which can be spent on hotel stays, upgrades, or special travel offers like spas and cruises. MARRIOTT Hetz Hertz Gold Plus For frequent business travelers, this program also operates on points. Points can be earned by renting vehicles, and sometimes points can be earned towards participating frequent flier programs as well. Points can be redeemed for more savings. Program members also get benefits like faster pick-up and drop-off, and save money on each rental. Rewards One of the original loyalty programs. American Airlines Points are earned based on miles flown, and can be redeemed for free flights, upgrades, vacation packages, hotel stays, and more. AAdvantage AmericanAirlines My Starbucks Rewards It requires frequent participation, but Starbuck's program is simple to understand and converts to rewards that you can choose. COFFEE Prime involves a fee of $99 per year, but involves benefits like free two-day shipping, instant video and music playing, photo storing, access to a special Kindle lending library, and more. Amazon amazon Prime Comes in debit or credit card flavors. Target REDcard Seasonal giveaways, in-store savings, free shipping from target.com, and other benefits make this a program which is widely admired both within the industry and by its customers. TARGET Many local grocery stores are partnered with a local gas station to offer gas discounts - check with your grocery store for details, but often this involves a dollar to point to cents off the gallon equation which is relatively easy ANY PARTNERSHIP Varies from store BETWEEN A GROCERY STORE to store AND A GAS STATION to understand. HOW CAN I GET THE MOST OUT OF A LOYALTY PROGRAM? Join Programs Focus That You on Value Shop Around Frequently Use Programs are going to have the most value if you use Think about what you want from a program. Some services are exclusively focused on reducing prices. Others provide services or special privileges. Do you want a mix of these? These days, lots of businesses in the same them often. industry have competing loyalty programs. Just one or the other? Are Shop at a particular grocery Check out different ones, there any fees associated with joining the program? Ask yourself these questions. store every week? and choose the best deal. Look at prices, too - Buy sandwiches from a certain shop every day for lunch? Are you a frequent flier on business trips? These are one company's "great loyalty deal" could be a competing company's average price! Beware the kinds of considerations of Confusing you want to make when Terms choosing a program. Even if the program is lackluster, it might be worth it just because you frequently use and Conditions a company's services. Like we said before - make sure that you understand how the program works. The more knowledge you have, the better you can access the deals. DExperian Data Quality Sources: • petco.com • palsrewardshome • bigdoor.com • consumerreports.org • macys.com • walgreens.com • blog.hubspot.com • faculty.haas.berkeley.edu • flyertalk.com • starbucks.com • time.com •moneytalksnews.com •money.usnews.com • amazon.com • colloquy.com • marriott.com • target.com • www.hertz.com ..OR EMAIL ADDRESS. .OR A PHONE NUMBER MAYBE YOUR ADDRESS... PROBABLY YOUR NAME.