Loyalty Program

(noun)

Structured marketing efforts that reward, and therefore encourage, loyal buying behavior — behavior which is potentially beneficial to the firm.

Related Terms

Examples of Loyalty Program in the following topics:

  • Loyalty Marketing

    • To the general public, many airline miles programs, hotel frequent guest programs and credit card incentive programs are the most visible customer loyalty marketing programs.
    • In recent years, a new marketing discipline called "customer advocacy marketing" has been combined with, or replaced, "customer loyalty marketing. " To the general public, many airline miles programs, hotel frequent guest programs and credit card incentive programs are the most visible customer loyalty marketing programs.
    • On May 1, 1981 American Airlines launched the first full-scale loyalty marketing program of the modern era with the AAdvantage frequent flyer program.
    • Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal buying behavior.
    • Discuss the basis, use and impact of loyalty programs as a personal selling and sales promotion tool

  • Brand Loyalty

    • Some fairly well-known examples of brand loyalty promotions include: My Coke Rewards, Pepsi Stuff, and the Marriott Rewards loyalty programs.
    • By creating promotions and loyalty programs that encourage the consumer to take some sort of action, companies are building brand loyalty by offering more than just an advertisement.
    • Below are some of the most popular Loyalty Programs that are currently being used by major companies as a means of engaging their customers beyond traditional advertising.
    • Online points programs – earn prizes for incremental purchase behavior (e.g., JetBlue's TrueBlue and American Airlines's AAdvantage frequet flyer programs)
    • My Coke Rewards, Pepsi Stuff, and the Marriott Rewards loyalty programs

  • Premiums

    • The Better Crocker Promotional ExampleIn 1929, Betty Crocker began a series of sales promotions that blended premiums, coupons and a loyalty program; it issued redeemable coupons that could be traded for free flatware and other household wares.
    • In 1937, the coupons were printed on the outside of packages, and later the Betty Crocker points program produced a popular reward catalog from which customers could pick rewards using their points.
    • With it, one of the earliest loyalty programs ended a 77 year tradition.
    • One of the first loyalty marketing programs ever offered was a premium in which proof of purchase was redeemed for prizes or gifts.

  • The Many Goals of Persuasion

    • When running promotional programs, companies seek to clearly and effectively market their product's differential factor.
    • The airline industry's frequent flyer program is a successful example of loyalty marketing.
    • These programs rely on the earned loyalty of current customers to attract new loyalty from future customers.
    • However, exclusive incentive programs must strike a balance between increasing benefits for new customers over any existing loyalty plan they are currently in and keeping existing customers from moving to new plans.
    • Companies such as T-Mobile use special promotions to drive repeat business and brand loyalty.

  • Positive Reinforcement

    • Employee incentive programs are programs used to increase overall employee performance.
    • Employee programs are often used to reduce turnover, boost morale and loyalty, improve employee wellness, increase retention, and drive daily employee performance.
    • Dealer incentive programs are used to improve performance for dealer and channel resellers using sales incentive programs.
    • To facilitate the creation of a profitable program, every feature of the incentive program must be tailored to the participants' interests.
    • By adapting each element of the program to fit the target audience, companies are better able to engage program participants and enhance the overall program effectiveness.

  • Reinforcement as a Management Tool

    • One particularly common positive-reinforcement technique is the incentive program, a formal scheme used to promote or encourage specific actions, behaviors, or results from employees over a defined period of time.
    • Incentive programs can reduce turnover, boost morale and loyalty, improve wellness, increase retention, and drive daily performance among employees.
    • To facilitate the creation of a profitable program, every feature of the incentive program must be tailored to the participants' interests.
    • A successful incentive program requires clearly defined rules, suitable rewards, efficient communication strategies, and measurable success metrics.
    • By adapting each element of the program to fit the target audience, companies are better able to engage program participants and enhance overall program efficacy.

  • Childcare

    • The scope of a child care program is up to the business itself, as well as the decision to create this benefit in house or to outsource it.
    • However, not all programs will fit all age groups.

  • Financial Rewards for Managers

    • Incentive programs, also known as "pay for performance," provide employees, consumers, or providers with financial rewards as a way of motivating better performance.
    • The interest of participants plays a vital role in determining an incentive program, as the goal is to motivate their behavior.
    • Pay-for-performance programs are quite common in a number of industries, most notably sales.
    • Like other pay-for-performance programs, the incentive programs for managers are designed to increase their performance as well as the overall performance of the company.
    • These and other incentive programs are often used to reduce turnover, boost morale and loyalty, improve employee wellness, increase retention, and drive performance.

  • Coercive Patriotism

    • The short-term concern was their loyalty to their native countries and the long-term was their assimilation into American society.
    • The states set up programs through their Councils of National Defense.
    • Kellor, speaking for the NAC in 1916, proposed to combine efficiency and patriotism in her Americanization programs.
    • Former president Theodore Roosevelt denounced "hyphenated Americanism", insisting that dual loyalties were impossible in wartime.
    • Thousands were forced to buy war bonds to show their loyalty.

  • Fringe Benefits

    • Other fringe benefits can include employee discount programs at shops, hotels, gyms, movie theaters, and so on.
    • Benefits may also include formal or informal employee discount programs that grant workers access to specialized offerings from local and regional vendors (e.g., movies and theme park tickets, wellness programs, discounted shopping, hotels and resorts, and so on).
    • Companies who offer these types of work-life perks seek to raise employee satisfaction, corporate loyalty, and worker retention by providing valuable benefits that go beyond a base salary figure.