Loyalty Program

(noun)

Structured marketing efforts that reward, and therefore encourage, loyal buying behavior — behavior which is potentially beneficial to the firm.

Related Terms

Examples of Loyalty Program in the following topics:

  • Loyalty Marketing

    • To the general public, many airline miles programs, hotel frequent guest programs and credit card incentive programs are the most visible customer loyalty marketing programs.
    • In recent years, a new marketing discipline called "customer advocacy marketing" has been combined with, or replaced, "customer loyalty marketing. " To the general public, many airline miles programs, hotel frequent guest programs and credit card incentive programs are the most visible customer loyalty marketing programs.
    • On May 1, 1981 American Airlines launched the first full-scale loyalty marketing program of the modern era with the AAdvantage frequent flyer program.
    • Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal buying behavior.
    • Discuss the basis, use and impact of loyalty programs as a personal selling and sales promotion tool

  • Brand Loyalty

    • Some fairly well-known examples of brand loyalty promotions include: My Coke Rewards, Pepsi Stuff, and the Marriott Rewards loyalty programs.
    • By creating promotions and loyalty programs that encourage the consumer to take some sort of action, companies are building brand loyalty by offering more than just an advertisement.
    • Below are some of the most popular Loyalty Programs that are currently being used by major companies as a means of engaging their customers beyond traditional advertising.
    • Online points programs – earn prizes for incremental purchase behavior (e.g., JetBlue's TrueBlue and American Airlines's AAdvantage frequet flyer programs)
    • My Coke Rewards, Pepsi Stuff, and the Marriott Rewards loyalty programs

  • Premiums

    • The Better Crocker Promotional ExampleIn 1929, Betty Crocker began a series of sales promotions that blended premiums, coupons and a loyalty program; it issued redeemable coupons that could be traded for free flatware and other household wares.
    • In 1937, the coupons were printed on the outside of packages, and later the Betty Crocker points program produced a popular reward catalog from which customers could pick rewards using their points.
    • With it, one of the earliest loyalty programs ended a 77 year tradition.
    • One of the first loyalty marketing programs ever offered was a premium in which proof of purchase was redeemed for prizes or gifts.

  • Sustainable Competitive Advantage

    • Customer Loyalty: Customers must be committed to buying merchandise and services from a particular retailer.
    • This can be accomplished through retail branding, positioning, and loyalty programs.
    • A loyalty program is like a "Target card. " Now, when the customer uses the card as a credit card, Target can track all of their transactions and store it in their data warehouse, which keeps track of the customer's needs and wants outside of Target.

  • Objectives of a Sales Promotion

    • Reward programs focus on customer retention and repeat purchases, awarding customers points, miles, or credits for purchases and future redemptions.
    • Besides price reduction and loyalty programs, point-of-purchase displays are a common tactic used by brands to prompt "impulse" customer purchases.
    • Training programs - Training instructing dealer employees in selling the brand's product.

  • The Many Goals of Persuasion

    • When running promotional programs, companies seek to clearly and effectively market their product's differential factor.
    • The airline industry's frequent flyer program is a successful example of loyalty marketing.
    • These programs rely on the earned loyalty of current customers to attract new loyalty from future customers.
    • However, exclusive incentive programs must strike a balance between increasing benefits for new customers over any existing loyalty plan they are currently in and keeping existing customers from moving to new plans.
    • Companies such as T-Mobile use special promotions to drive repeat business and brand loyalty.

  • Future Changes in Retailing

    • Different technologies, software platforms and programs will continually refine this concept, honing it to a fine point and placing the consumer's wishes at the top of the priority lists for all businesses.
    • Loyalty programs will flourish and businesses will go to great lengths to secure and keep the loyalty of their customers.
    • The use of concepts used in gaming programs and platforms have already begun to be integrated into retailing technology.

  • Direct Marketing

    • Toll-free 1-800 numbers, loyalty marketing programs, magazine subscription cards, mail order catalogues, and credit card rewards programs laid the foundation for direct marketing's success.

  • Online Sales Promotion

    • Affiliate programs transform site visitors to business partners by offering rewards for referral business.

  • Support and Help

    • Excellent customer service can help differentiate a product or brand and may lead to increased brand loyalty over time.
    • Examine the role of support and help programs as a differentiating factor in product design