Video About The Benefits of a Loyalty Program

Here is a link to a video describing the benefits of a loyalty program for a business

YouTube: The Benefits of Loyalty

Disadvantages of Loyalty Programs

Of course everything that has benefits, also has its downs. Which seems to be the case for loyalty programs as well. Many customers think its all paradise when they go shopping and obtain their savings. That really is not the case as most of these businesses have a third party company that manages them. These third party companies hold our information such as our names, date of birth, addresses, etc. Our privacy is not given any protection as these companies track all our movements as to where we shop, what we buy, and our spending habits.
Another disadvantage is that there is a limit on transferring the points between family and friends. It is very difficult to do such a thing and many customers might not be attracted by this.
Furthermore, customers complain that the availability and variety of prizes are not that good. Customers obviously want more, and what a business is offering might not be of taste to the consumer.
Some people say that Loyalty programs are used to lure more consumers into spending more money. More consumers are tempted to use their loyalty cards to spend their disposable income.
All in all, loyalty programs have its ups and downs but its up to you at the end of the day to use it or not.

Source: http://www.iamloyal.co.uk/blog/most-loyalty-programs-annoy-me

http://gtaggar.blogspot.ca/2012/02/disadvantages-of-customer-loyalty.html

Facts and Stats About Loyalty Programs

Some facts and stats about loyalty programs: 

1. Consumer spending is 46% higher with companies that offer loyalty programs
2. Companies can increase profit almost by 50% by retaining 5% more of their customers
3. 78% of cardholders use their card every time they shop 
4. 70% of people that come from higher income households are more loyal to companies that offer a rewards program
5. Since the recession, 32.3% of consumers made their participation in loyalty programs more important

Source: http://www.loyaltyleaders.org/facts.php

http://ackroo.com/loyalty-programs/

Why Loyalty Programs Work?

Loyalty programs work simply because they offer the quickest way for a customer and a business to build a relationship. Over the time, cardholders start to visit you more. With more frequent visits from the customer, the more profitable the relationship becomes  for the business because the consumers feel some sort of connection with the store.

Source: http://ackroo.com/loyalty-programs/

Advantages to Having a Loyalty Program

Some advantages to having a loyalty program include:

• It is easy to implement
• Could potentially increase your sales
• Ability to partner with other companies
• Improve company image and product brand
• Increases the spending from existing customers
• Increases visit frequency 

Source: http://smallbusiness.yahoo.com/advisor/benefits-of-customer-loyalty-programs.html

Companies that use Customer Loyalty Programs

In Canada there are many companies that use loyalty programs. The oldest one in Canada is Canadian tire which started to offer Canadian Tire Money to its customers which can be redeemed as currency. As time time goes by, new trends start to emerge and companies start following this trend. The largest loyalty program known in Canada is Air Miles. With Air Miles you can use it at over 100 locations, and offers a thousand different rewards for its users. Other loyalty programs include Shoppers Drug Mart and its Optimum Card, Petro-Canada and its Petro Points, Staples and its easyRewards savings card, and of course many more.

What Are Customer Loyalty Programs

There are two main goals businesses have when it
comes down to customer loyalty programs. To begin with, there are primary goals that include winning new customers, obtaining customer loyalty, having a strong database, and supporting other departments in a company. Then there are secondary goals. These include having continual visits from customers at point of sale, continual card usage and purchases, solutions to problems, customer support capacity, and lastly help build and improve the company logo and brand.
There are many ways loyalty programs help benefit the consumers. Various programs offer benefits such as sales discounts, benefits to sales and purchases. In Canada, 94% of Canadians belong to some sort of loyalty program. The most common way is having loyalty cards which you could carry in your wallet, or even hang on your key chain.


Daily Motion Video: What Are Customer Loyalty Programs?


Source: http://www.marketingmag.ca/uncategorized/secrets-of-canadas-top-loyalty-programs-2-25684