Loyalty program or how we try to keep

In the context of growing every day competition in any market, be it services or products - companies, entrepreneurs, freelancers - all trying to keep near me, "trick your customer."

Most of us are faced with all sorts of loyalty programs on a daily basis, whether it's a hike for groceries, a gas station, buy tickets (discounts, coupons, cashback, etc.).

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According to statistics the average person about a dozen loyalty cards of different companies, and sometimes more than 30 cards.

The familiar loyalty program with discount cards appeared in 1914 (as the idea of competition of a small network of stores with others), and it would seem that after so many years they had to lose their relevance, but in fact only continue to spread, and the customer's demand for their availability, and benefits - to grow.

Many buyers understand, they only motivate us to even greater consumption.

Remember your experience as with the introduction of loyalty programs in mobile communications (when in balance you have to get the points or the service itself) has increased to 9% and the average revenue per subscriber, and in fact nothing has changed, "warm advantage" subscribers simply have more to spend, and operators received additional billions.

Or the example of a small network of stores of food, issuance of cumulative discounts from the amount of purchases led to sales growth of more than 15%.

Analysts only confirm this that loyal customers are 80% more likely to purchase it in the place in which the most advantageous loyalty program (and in fact often we don't even spend time comparing with places where no such program and the price is initially close to, and possibly below).

The number of loyalty programs only exponentially growing, and as we know with a large choice of accommodation - falls the engagement of participants in such programs.

Surprisingly, businesses are often willing to invest big in creating complicated incentive schemes for the promotion and discounts, while not paying attention to the problems of work and customer complaints, the quality of the service. But most customers leave a company because of bad service (not bonuses).

If to speak about reality in retail we have, in the past year with the development of a business my friends, we renounced any loyalty programs initially did not include these costs in cost of goods openly used this fact in the marketing support and received significant effect.

Admittedly, after some time, many people's reaction on the topic: "what discounts?" "a funded system?" and others, was forced to change the scheme and to introduce this artificial stimulation of a certain loyalty.

It turns out most are not important simplicity and convenience with initially low prices, easier to "hope and believe" that for example a card with a 10% discount is very profitable, I or the most important VIP / GOLD customer...