Instead I show my card, get a discount, the end.

What I would love is getting something at home that prompts me to come to the store in order to receive a free gift or significant discount on something I typically don’t buy but is in a category that I buy regularly.

For example, send me a note with “because we value your business, we thought you might like to try these gourmet products – so the next time you come into our store, pick up the following products and then let us know if you like them.”

Those more expensive products are either offered as a free gift or at discount so the price paid is comparable to what I pay for the cheaper product.

I like [ex] Ice Cream A but get to try another ice cream that is more expensive (and hopefully richer, creamier and more decadent). I like it…and (hopefully) I change my buying behavior.

Unfortunately, today, the program typically reacts to my same old product purchases with a discount. I don’t change my buying habits and the store doesn’t proactively manage the relationship with me.

Hope that helps…again, sorry for the lack of clarity.

The bigger question for the consumer, is whether you feel you are valued should you not be able to be a part of the program (I’ve shopped at grocery stores while out of town, & usually, the store clerk is kind enough to offer me their savings through use of a store card held at the register); whether you’re valued should you choose to not be part of the program (for example, Hallmark offers their Gold Crown customers special savings, however, I don’t feel undervalued by choosing to not receive their coupons-based awards in the mail)… I don’t think it really matters if you have the cards, I choose never to carry cards for the sake of conservation of space, I also belong to most, & always receive the savings… (store cards are not points-based, by the way, they’re percentage based I believe… you receive a discount on items they’ve reduced in order to sell more quickly)

I disagree that these programs are reactive, and am unsure how you qualify that statement, it makes no sense… they’re reacting to consumerism? I suppose that’s true, but what should a business react to if not their customers… a proactive response would require that all people respond accurately in any similar situation, and that isn’t a reasonable measurable.

The bottom line, each business situation needs to be evaluated separately, not lumped into a category of ‘card-based’ solution… it really isn’t that they offer special savings for loyal customers, or whether you feel valued by the establishment, it’s whether you value what you receive on any given visit. It’s a personal choice, and you should choose wisely.

Good comments … we may not be that far apart. Note that I am concerned with the “unrealized opportunities with existing programs in the market”, meaning that there are too many programs that don’t work and too many more that aren’t measured well enough to know if they are worth the investment made by the sponsoring company.

On my web site, you’ll find this: “Our belief that while not every business needs a loyalty or rewards program, every business does need a thoughtfully created and well executed Customer Strategy”.

Whether you favor the traditional loyalty model or detest it, I think we can agree that establishing a construct for measuring the impact of marketing investment is good business.

Bill

Loyalty programs are reactive – they need to be proactive.

Currently I fit the research – I have about 15 cards, but only 4 are in my wallet. Two are for grocery stores and I use them in order to get my savings at the register. Not a very customer-centric approach to loyalty since it basically tells me that if I don’t manage the relationship, I get overcharged.

The other cards are for Petsmart and Staples for the life of me, I don’t know why I bother. I show the cards every time and I can’t remember when I got anything of value from either store. Nothing at the register, nothing in the mail (beyond those wonderful “Save 10%” headlines followed by small print that tells me that I have to buy $100 or more.)

I’m certain it won’t always be the vendor or retailer; in fact, I’d venture to say it can’t be; not if the business is to be a successful one. With the expense of loyalty strategy built into the format of the business structure, necessarily, in order to compete at all in the marketplace, are your promotional program business sources considering the fall-out? I don’t believe so, or you wouldn’t be asking this question, “are we profitable,” which is really what you’re asking in attempting to devise an across the board metric for your industry.

The good news?

You are obviously united in your efforts…

The bad news?

I don’t see any… since, the answer is obvious:

You just need to be sure your programs are used.