Business understands that building customer loyalty is the key to powerful retail marketing. Once you have captured a customer\’s loyalty they are yours to lose. The correct analysis of customer buying trends is a basic way to build this loyalty but a business must be clever how it obtains and uses this data.

The use of reward programs, loyalty cards and similar. They go by many names but they all operate in the same way. They build loyalty by offering an incentive to the customer. The incentive comes in the form of a discount or a free item. Modern technology has made these programs quite intricate. Business is able to collective useful data from customer purchases. Business is also able to use the technology to spark customer interest and direct customers\’ purchases via these successful rewards programs.

The pervasive influence of the internet plays a synergistic role. A customer reward card account can be accessed on the store\’s website. Emails contain coupons, discounts and information about upcoming sales and special deals. The rewards program is totally integrated with the web.

The beginnings of the reward card system have humble roots. Coffee shops would distribute punch cards to customers. When the card was punched a certain number of times the customer receives a free cup of coffee. Some supermarket chains would have a discount club. The store would track customer\’s purchases via the cards. This enabled the store to stock items that were in high demand by their customers. It was a win win situation although some claim it was an invasion of privacy.

Reward programs have grown ever increasingly sophisticated. From a paper punch card they know are like a credit card with a readable magnetic strip. The card is integrated with the internet and the business\’s web site. It is hard to find a major retailer who does have a rewards program or a customer loyalty program. They have many different names given by their sponsored but they are all quite similar.

While the customer certainly derives benefits from participating in the rewards program, the motive\’s of the business are not completely altruistic. The business derives definite benefits from running these customer programs. You can be assured that if the business did not get something worthwhile from these programs they would not be doing them.

A rewards program allows the business to compile data regarding consumer preferences and buying patterns. This data is employed for highly efficient inventory management. The discounts and coupons offered is a method to target customer interest to specified products. The business will collaborate with their suppliers to focus on certain products that they wish to promote.

While customers definitely benefit from rewards programs, customer ought not be so naive to think that business is doing it out of the goodness of their heart. Business gets tangible benefits from sponsoring these programs as well. In the final analysis, these promotional customer loyalty programs are only going to grow and become more sophisticated in the future. Clearly, both customers and businesses benefit greatly from these innovative and successful sales promotion programs.

Author Bio: Creating Reward program since 1981, we\’ll design a loyalty strategy to meet your goals, surpass your customers\’ expectations, and inspire long-term loyalty and growth.

Category: Marketing
Keywords: marketing, sales, business, merchandising, product launch, customer service, purchases, management