Do Customer Loyalty Programs Really Work?
Customer Loyalty Programs have been around for ages. S&H Green Stamps were launched in the 1930s. By the 1980s, nearly every major corporation used wallet cards with some kind of tracking system for loyal patrons. Today, most of these programs use digital tools and have eliminated cards, which consumers today tend to avoid. Customer Loyalty/Rewards programs are still used because they have been proven to attract greater revenue for a business.
When used right.
The Wrong Way to Customer Loyalty Rewards Programs
As with anything marketing, there is a right way and a wrong way.
The Green Stamps and similar programs were largely eliminated by the 1980s in favor of simpler methods. And the programs launched in the 70s which eliminated stamps were largely eliminated by the late 90s for the same reason. The digital age then created newer, better customer loyalty rewards methods.
Today, everything from Frequent Flyer points to food delivery perks can be digitalized with no need of a customer keeping a wallet or purse full of plastic cards. Just enter a phone number or open an app and the rewards points are added to your account. That said, there is still a "wrong" way.
Whereas 3/4 of consumers prefer to do business with a company which offers a loyalty rewards program, most of those will avoid a program that uses an app. This may be surprising to some, given the popularity of apps today, but not really.
Remember that the key to a good customer loyalty rewards program is simplicity. In the 30s, 40s, 50s, and 60s, Green Stamps were simple. By the 70s, stamp collecting had lost its luster and simpler methods appealed to a more active, mobile society. As the pace of business and society increased further, even simpler ways to provide the benefits of customer loyalty appeared.
Today, people have so many apps on their phones that nearly everyone spends a few minutes each month clearing out apps they do not use. Loyalty apps are often the first to go because there are easier ways to earn points.
Customer Loyalty Rewards are VERY Competitive
Today, the simpler method is seen in the programs that request the least information. According to a Harris Poll, 3/4 of Americans prefer a customer loyalty rewards program that only asks for their name and phone number. And, rewards programs that only ask for a phone number have an even greater advantage.
Oakes Marketing Consultants recently partnered with Lonestar Marketing for just that reason. The program they offer is designed for small businesses like C-Stores, Restaurants, and Salons. The program only asks for a phone number and has a solid track record of providing outstanding Returns on Investment (ROI). The average customer sees returns ranging from 10% to 22% over cost.
On seeing the data, we were blown away. These are the best and most consistent marketing returns we have ever seen. This is why we partnered with Lonestar to provide their program to our clients SWLA and beyond.
We Help Small Businesses ONLY
At Oakes Marketing Consultants, we help small businesses. We believe in the importance of small locally-owned companies, which are the backbone of our economy. To this end, everything we do is done to help the local Mom-and-Pop companies better compete.
If you would like to learn more about this outstanding Customer Loyalty Rewards program, let us know by calling 337.660.4774, emailing us at firstname.lastname@example.org, completing the form below, or getting in touch via live chat.
We are here to help you grow and could not be more excited to offer the LoneStar Customer Loyalty Rewards program to all our clients.