In this part 1 of 2 series that highlights success and failures of existing loyalty programs, we will look at the successes of loyalty programs.
Many businesses have jumped on the bandwagon and incorporated some form of customer rewards system to retain loyal customers. Needless to say, customer-loyalty programs are aplenty nowadays.
If you are a customer, what do you look out for in customer-loyalty programs? What draws you to constantly go back to one company? If you are a business looking to implement or revamp your programs, what should you keep and conversely, throw out?
TheStreet conducted a thorough research on the term and conditions of numerous loyalty programs and presents readers with 5 best and 5 worst customer-loyalty programs according to existing programs as case studies.
As a quick summary, I will attempt to highlight the winning points of the success stories and the potential pitfalls displayed by the less successful ones, as highlighted by TheStreet. This will be uncovered in 2 posts, so look forward to the next post which will look into the flipside of the story.
Success: Starbucks (SBUX) Rewards – Starbucks scored points with regular customers by rewarding them with free stuff.
Success: Best Buy (BBY) Rewards Zone – While the translation from real dollars spent in store to customer loyalty points may not be that generous, customers enjoy exclusive perks such as members-only offers and access.
Success: Neiman Marcus InCircle – Neiman Marcus focuses on rewarding committed customers who spend large amounts instead of targeting the average masses.
Success: National's Emerald Club - National offers good and speedy service and reward customers at the same time. At times, it is not just the rewards that matters, but the customer experience as well.
Success: Intercontinental Hotels Priority Club Rewards – The extensive locations, brands and low-bar perks offered by the Intercontinental group is what makes its loyalty program competitive.
To find out more about CRM and the issues critical to the agility, resilience and adaptability for Asia's customers, join like-minded professionals at Loyalty World Asia 2012.