Customer Satisfaction

Customer satisfaction is one of the most beneficial outcome of loyalty cards and the key to success in an organization.


So how does customer loyalty programs relate to customer satisfaction?


Well consumers generally feel more satisfied when they are aware that they are getting an excellent value. When consumers redeem their built up points, or they receive their free product they have been working towards-- They feel a sense of accomplishment and satisfaction.


This customer satisfaction is vital in maintaining your loyal customers and is also extremely important in attaining new customers, as 80% of your customers come from 20% of your customers.

Sourced From: http://www.greatbrook.com/customer_loyalty.htm

Countless

There are many different types of loyalty programs on the market now-a-days. Below I have listed a few of the most popular forms of loyalty programs to date.

1. Punch/Stamp Cards
2. Points Programs
3. Rebate Offers
4. Box Top Coupons


With all these different types of reward systems, its simple to figure out a system so that you, as a consumer save the most money possible!

Who is really benefiting?

Some of you may be thinking, why on earth do these companies just give away all this free stuff? Well the answer is simple. Companies that offer loyalty programs may in fact be benefiting more than you are.


Companies that offer you these rewards are benefiting in the following way;


1. Better Customer Involvement 
Loyalty programs make customers feel more involved with the brand, and almost act as a game for the customer, challenging them to reach the next level- which means more purchasing!


2. Trend Management
Helps you manage who is buying what, when they are buying it, and where they are buying it.


3. Increased Profitability
Because these customers feel rewarded when they make purchases, they are more likely to buy more products because it gives them a sense of accomplishment.

Sourced From: http://www.business.com/sales-and-marketing/customer-loyalty-programs/

Saying Goodbye

According to marketingmag.ca over 70% of customers who sign up for a rewards card lose interest in at least one program they signed up for.


3 ways to keep your customers interested in your program:


1. Keep your reward levels realistic and achievable!
It is important to have practical reward levels so that it does not take your customers years to reach a reward level.


2. Dont treat all your card members the same!
Use data-mining to observe different shopping patterns of individual customers and segment them so that Joe isnt offered the same rewards as Judy. Maybe Joe wants a new sports magazine, where as Judy wants some new lipstick.


3. Re-ingage inactive customers!
Contact customers that haven't used their card in a while, and ask them why. Once you hear their concern, entice them to return to your store by offering them certain incentives.

Whats app with that?

Now that 2012 is fast passing, its time to see how customer loyalty cards measure up with todays technology. 

After a few hours on Apples app store, I found multiple companies that allow you to collect points via your Apple iPhone. Starbucks being the largest company to offer such features (Ofcoarse, I already had this app before my research). Some of you may be wonder what your iPhone has to do with this, but you will see..

Starbucks Rewards allows you to build points and reach certain levels. Myself being a Starbucks addict have already gained access to the "Gold Level". Being a "Gold Member" gives me perks such as free syrups and soy milk added too all of my beverages, as well as every 15th drink I purchase is free!

And to think, I haven't even gotten to the coolest part yet. Upon downloading the Starbucks Rewards App, I can enter in my pre-paid Starbucks card, and use it as my method of payment! All your barista has to do is scan the bar code on your phone, and all the work is done for you!

Watch the below video on how the Starbucks Rewards app works!

(Video is of an android phone, but works on iPhone's as well)





Video Courtesy of: http://www.starbucks.com/coffeehouse/mobile-apps

'Disloyalty' Cards

Multiple coffee shops in Boston have recently started a 'Disloyalty Card' campaign to encourage customers to visit a variety of different independent coffee shops.


Now this idea may seem obscene - to reward customers for going to different coffee shops, however the creator of this campaign does have a novel idea. 

To encourage and reward customers to visit other independently owned coffee shops, helps emphasize the service and quality you receive when you avoid the big coffee conglomerate's. Also this gives the customers the ability to mix up their routine, and try different items while not being penalized by losing out on rewards.

I think this great idea will catch on.. FAST. Do you?

Sourced From: http://www.metro.us/boston/local/article/1051303--local-coffee-shops-start-disloyalty-card-campaign

A Little History..

Now it is general knowledge that a customer loyalty card is an excellent way to maintain and attract customers, but it leaves us wondering- Who is the genius that started this?


Back in 1872 The Grand Union Tea Company began to give customers tickets that could be exchange for any product in the Grand Union catalogue. This type of premium program was the first of its kind and launched a series of customer loyalty programs such as trading stamps (We still see a bit of this in today's society, such as "Lunch Cards" from Jack Astor's) and box tops (Present day equivalent would be coupons on your cereal box).

Sourced from: Wikipedia.ca/Loyaly_Marketing

Convenience or Con?

Are rewards credit cards as convenient as they claim, or are they really just a scam to earn more money?


This post will examine various credit card offers and their interest rates.


Shoppers Optimum Mastercard:

For the first 6 months, Shoppers Drugmart offers a 1.99% interest rate, with a 21 day grace period. However after these 6 months, the rate jumps to 19.99%! Thats TEN TIMES the original rate! That means that if you have a $100.00 payment unpaid after the 6 month grace period, you will be required to pay approximately $20.00, just in interest charges!






HBC & Capital One Mastercard:
Right off the bat, the Hudson's Bay Company charges you a 29.9% interest rate, with a 21 day grace period. That means that if you have a $100.00 payment unpaid, you will have to pay approximately $30.00 in interest fees! Thats almost 1/3 of your total purchase!




PC Mastercard:
This mastercard seems to me to be the best deal out there! For the first 6 months they offer a extremely low rate of .97%, and after the initial 6 months they offer a rate of 19.97%! Although this is a large increase from the initial offer, considering the premium benefits you are given with this card - Purchase Assurance and Extended 2 year warranties on EVERYTHING you buy- it is definitely worth it!


Although each card has its own individual benefits, and unfortunately their own downfalls- each card can offer extreme savings if you are responsible and make your payments on time.

The D-L

Every loyalty card is different and each company offers unique savings- from free groceries, to free make up! This post will provide you with information on the top three rewards programs;

Optimum Card:

What you earn: 10 points per $1.00 spent before taxes.

Redemption: 75,000 points = $150.00

My Opinion: As an avid Shoppers Drugmart shopper, my opinion may be biased. However I feel that the Shoppers Optimum card is one of the best programs out there as they offer many bonus points events on all of your essentials- food & make-up- and to strategically place the cherry on top of it all, its a one-stop shop!

*Added Benefit: frequent 20X your points events!

PC Points:

What you earn: 10 points per $1.00 spent before taxes.

Redemption: 120,000 points = $120

My Opinion: Because this program is done via a Master Card, it is very easy to earn enough money to redeem your reward savings. I also enjoy this program because you earn points on everything you buy, and it is redeemable for groceries - something you cant live without, so why not get it for free!

*Added Benefit: 40,000 bonus points when signing up!

HBC Reward:

What you earn: 50 points per $1.00 spent before taxes.

Redemption: about 400,000 points = $50 gift card

My Opinion: Due to HBC offering so many points per dollar spent, it is kind of distracting as a consumer because calculations are much more complex and you don't realise how much money you have to spend before you can actually be rewarded.

*Added Benefit: Ability to redeem on gift cards for various locations!

".. and are you a Shoppers Optimum Card holder?"

Lets face it.. we've all been asked the fixed question, "do you have a ________ card?".

From Shoppers Drugmart, to Chapters- it seems as if every company has a rewards program these days, and its hard to differentiate from the good ones, and the bad ones.

Loyalty reward cards DO have the potential to save you money, IF you know how to use them. Most companies reward with such diminutive amounts of points that it seems as if it takes a lifetime to earn $5, however if you shop on the right days, and for the right products- rewards cards will pay off.

For Example, Shoppers Drugmart's Optimum card works like this,

At 10 points per dollar, It would take you about $1500 to save $25. However, if you shop on a 20X the points day, it will only cost you $75 to earn $25- Now thats a deal!