It's no secret that retailer-managed customer loyalty and rewards programs can help establish the right platform to retain and analyze key customer data, while cultivating an ongoing relationship with buyers.
Check out this loyalty program guide by Michael Koploy, an ERP analyst from Texas.
Michael writes on various ERP topics, with particular interests in supply chain management and retail industries.
According to his recent blog, "A Three-Step Approach for Retail Loyalty Program Success," many retailers have some form of a loyalty and rewards system in place, but far too often these are punch card rewards. However, punch cards fail to capture rich data about who customers are and what types of products they are purchasing.
With customer-spending data to analyze, retailers can make better decisions about product inventory and future sales/promotions to offer. Central to a successful retail operation – and loyalty program – is having the right point of sale (POS) software in place, and many of today's POS systems offer customer relationship management (CRM) and loyalty program features to provide retailers with the tools they need.
Whether retailers are looking to develop a new loyalty program or rejuvenate an existing one, here are some best practices to keep in mind.
1. Create a Program that Drives Loyalty
2. Develop Program Membership
3. Collect and Analyze Good Customer Spend Data
Find out more about how to succeed with loyalty marketing at Loyalty World USA 2012!
Let us know what loyalty programs you've found effective! What do you think are the key factors to consider in managing these programs?
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