Loyalty programs are designed to increase your short-term and long-term profits… even in a recession, inflation, or stagflation economy.

It increases sales if done right.

And it increases the Lifetime Value (LTV) of each customer for the long term.

Loyalty Programs are an effective communications channel that build trust and increases upselling and cross-selling.

A loyalty program creates a database, especially using Transactional Data Modeling (TDM) [see HERE], which gives you a tremendous way to create a 95% or more look-a-like audience from your best customers.

Although not as effective as TDM, it also serves as a powerful tool to have a responsive look-a-like audience for Google, Facebook, and other platforms.

Right now, I bet you belong to one or more loyalty programs.

There are 3 types of loyalty programs:

#1: Paid Loyalty Programs — This is where people pay a premium to belong.

These are probably the highest quality identifying your best customer. Walmart, Kroger, Boost, CVS CarePass, and Best Buy Totaltech are examples of paid loyalty programs.

#2: Paid Subscription Model —There are also paid subscription member models.

This is what, for example, Amazon Prime and wine clubs do. It’s high quality and keeps the cash flow strong… Even in a recession. For example, Walmart is offering half off on a new subscription program at $98 dollars a year.

#3: Free Loyalty Programs — Free loyalty programs are important because they help you collect first-party data and can be segmented by various targeted audiences.

For example, Ultra Beauty, Target, Kroger, and most airlines will have a free loyalty program. Sometimes marketing a loyalty program is based on the “marketing pyramid” I talk about in my marketing seminars.

The bottom level is the free level. Then comes a low-price paid level. Then comes the more exclusive or targeted level at a higher price. Sometimes there are many levels—people love having “gold cards” or being a “platinum” level of frequent flyer clubs. Your job is to move them from one level to the next.

If you would like to talk about building a loyalty program for your company, or if you have one but want better results… please do not hesitate to give us a call at 615-933-4647 or email Craig at [email protected]