Comments on: The Power of Loyalty Marketing http://anewmarketingcommentator.com/2005/06/22/the-power-of-loyalty-marketing Written by creative director, copywriter and communications strategist, Bob Cargill, A New Marketing Commentator is an eclectic series of insightful, candid commentaries on direct marketing and advertising trends, developments, topics and issues. Wed, 20 Aug 2008 02:55:38 +0000 http://wordpress.org/?v=1.5.1.3 by: Yvonne DiVita http://anewmarketingcommentator.com/2005/06/22/the-power-of-loyalty-marketing#comment-15 Mon, 27 Jun 2005 20:40:23 +0000 http://anewmarketingcommentator.com/2005/06/22/the-power-of-loyalty-marketing#comment-15 GREAT post, Bob. Loyalty marketing, via cards or personalized discount coupons is a ladies best friend. If folks took time to understand loyalty marketing...it would help improve business dramatically for them. As Bob McCarthy states, it's harder for us little guys -- the technology is still a bit expensive, but...blogging can help that. It's a good way to learn who's interested in you, how often they visit, and which posts gets the most traffic. Someone needs to find a way to track all of this cost-effectively. Maybe someone has??? I don't know, do you? GREAT post, Bob. Loyalty marketing, via cards or personalized discount coupons is a ladies best friend. If folks took time to understand loyalty marketing…it would help improve business dramatically for them. As Bob McCarthy states, it’s harder for us little guys — the technology is still a bit expensive, but…blogging can help that. It’s a good way to learn who’s interested in you, how often they visit, and which posts gets the most traffic.

Someone needs to find a way to track all of this cost-effectively. Maybe someone has??? I don’t know, do you?

]]> by: Bob McCarthy http://anewmarketingcommentator.com/2005/06/22/the-power-of-loyalty-marketing#comment-14 Sun, 26 Jun 2005 13:07:22 +0000 http://anewmarketingcommentator.com/2005/06/22/the-power-of-loyalty-marketing#comment-14 Great Post, Bob I too am a big fan of loyalty cards. Like you, I carry around several loyalty cards, but I wonder how many more I can fit before I just say "no more." I am guessing that some day soon, retailers are going to have to compete for space in may wallet and on my key chain. As a direct marketer, I have been waiting a long time for loyalty cards to take hold. It is the ultimate direct marketing tool for retailers, but it took a while for the technology to make it practical. For many years and still today, small retailers have used "frequency" cards to reward customers after a certain number of purchases or visits. The customer would keep the card and present it to the merchant (to be signed, stamped or punched) with each purchase. These cards do serve one purpose - they can increase customer loyalty. But they fall short in one very important way - the retailer doesn't know who his customers are, what they buy, when they buy, how much they buy or when they stop buying. He might get their name at "sign-up" (although that is seldom done), but he doesn't have any idea who his best customers are -- which is really the key to loyalty marketing. Fifteen years, I created a loyalty card program for a local restaurant that rewarded customers for repeat visits, but we had to do everything manually. We printed plastic, embossed loyalty cards (with unique numbers)and 2-part forms that could be placed in credit card transaction machine. The waitress would process the loyalty card when she handled payment. At the end of the night, someone (usually the owner or the manager) would have to input all of the information into the computer. Obviously, today's loyalty card programs are all part of the Point of Sale system - which is good news for the customer and the merchant. So far, most of the loyalty programs we see are from larger retailers and chains. I am curious to see when (or if) these programs will take hold with the smaller retailers. So much of it depends on the technology (the capability of low-end Point of Sale systems), but it also depends on the retailer's willingness to look beyond the traditional methods of retail advertising. Time will tell. Bob McCarthy The Direct Response Coach Great Post, Bob
I too am a big fan of loyalty cards. Like you, I carry around several loyalty cards, but I wonder how many more I can fit before I just say “no more.”

I am guessing that some day soon, retailers are going to have to compete for space in may wallet and on my key chain.

As a direct marketer, I have been waiting a long time for loyalty cards to take hold. It is the ultimate direct marketing tool for retailers, but it took a while for the technology to make it practical.

For many years and still today, small retailers have used “frequency” cards to reward customers after a certain number of purchases or visits. The customer would keep the card and present it to the merchant (to be signed, stamped or punched) with each purchase.

These cards do serve one purpose - they can increase customer loyalty. But they fall short in one very important way - the retailer doesn’t know who his customers are, what they buy, when they buy, how much they buy or when they stop buying.

He might get their name at “sign-up” (although that is seldom done), but he doesn’t have any idea who his best customers are — which is really the key to loyalty marketing.

Fifteen years, I created a loyalty card program for a local restaurant that rewarded customers for repeat visits, but we had to do everything manually. We printed plastic, embossed loyalty cards (with unique numbers)and 2-part forms that could be placed in credit card transaction machine. The waitress would process the loyalty card when she handled payment.

At the end of the night, someone (usually the owner or the manager) would have to input all of the information into the computer.

Obviously, today’s loyalty card programs are all part of the Point of Sale system - which is good news for the customer and the merchant.

So far, most of the loyalty programs we see are from larger retailers and chains. I am curious to see when (or if) these programs will take hold with the smaller retailers.

So much of it depends on the technology (the capability of low-end Point of Sale systems), but it also depends on the retailer’s willingness to look beyond the traditional methods of retail advertising. Time will tell.

Bob McCarthy
The Direct Response Coach

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