Customer Communications Group Shares 5 Ways to Ramp Up Young Loyalty Programs

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Free Loyalty Self-Grader Guides Marketers with Specific Advice

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Next we determine the steps that will push them up the loyalty marketing continuum, like these five steps to help businesses rev up young programs to customers.

Customer Communications Group, (CCG) the full-service loyalty and marketing agency, offers five steps to keep businesses on track during the first two years of their loyalty marketing program. The CCG Loyalty Marketing Self-Assessment -- a free, 5 minute self-quiz that grades loyalty marketing programs -- will help businesses gauge where they are and how to take their loyalty marketing to the next level.

“First, we help clients figure out where they stand, which is why we created the Loyalty Self-Assessment, “ said Sandra Gudat, president & CEO of Customer Communications Group. “Next we determine the steps that will push them up the loyalty marketing continuum, like these five steps to help businesses rev up young programs to customers.”

1.    Big Changes Coming
Marketers should expect to see big changes over the next 24 months as more members join and a greater percentage of transactions are represented by loyalty members. There may still be some kinks in operationalizing your program and that’s par for the course.

2.    What Percentage Loyalty?
If loyalty transactions are 25% of total store transactions, that's a decent start, especially by the end of the first year of the program. However, by the time the program is two years old, member transactions should account for closer to 40% of all transactions. If they are not, marketers may need to reevaluate the program value proposition and benefits to ensure they are relevant and enticing to customers.

3.    Know the VIPs
Many retailers report that the top 25% of their customers represent nearly 70% of total sales — that’s a lot of revenue tied to a comparatively small group of customers. It’s a smart move to have a strategy in place to recognize them.

4.    Talk it Up
Consider what additional customer-facing communications — such as FSIs, promotional emails and social media — can incorporate at least a simple description of the program. Reinforce to customers the rewards ($, members-only sales events, etc.) if they spend a certain level. Whenever feasible, include customers' account status to show how close they are to their next reward.

5.    Be Flexible
Suppose 0% – 10% of members earn the program's primary reward within a 12-month period. If the program is brand new this may not be a concern. But if the program is closer to two years old, members may consider it too restrictive and, as a result, many may have disengaged out of frustration. Change it up.

Is your loyalty program best in class or merely so-so? How does it stack up to other retail loyalty programs? Discover strategies and steps to build loyalty specifically for your business and boost the bottom line; Take the CCG Loyalty Marketing Self-Assessment Here.

Customer Communications Group (CCG) is a full-service customer relationship marketing (CRM) agency that helps Fortune 2000 retailers and financial institutions improve their bottom line by improving their customer relationships, loyalty and retention.

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Jim McNulty
StandPoint Public Relations
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