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This is the very first in a series of articles we will be publishing relaying thoughts and tips from the Web Retailer Conference in Chicago, which occurred June 5th through June 7th. Mark Goldstein, CEO of Loyalty Lab (a organization that implements loyalty programs for merchants), and Gary Korotzer, CMO of Red Envelope (a organization that specializes in selling gift items), delivered a presentation about loyalty applications. Red Envelope presently has a loyalty system managed by Loyalty Lab.

Loyalty applications are taking off. If you have a retail internet website and you do not have some sort of loyalty system...chances are that by the end of next year you will. Jupiter Investigation expects that by the end of 2007, 78% of retailers undertaking company on the internet will have a loyalty plan, compared to 24% now. So what is the massive deal?

It fees a lot far more to create a new consumer than to sell to a repeat client. Loyalty programs allow you to develop a customer base that is loyal to your products, and will continue to obtain from you, rather than your competitors. A loyalty program is some sort of plan that makes it possible for your buyers to develop up credit to apply to additional purchases, or to redeem for cash. For example, a retail internet website could grant a client "points" for each and every buy he makes. When he has adequate points, he can redeem them for a discount on a lot more merchandise, or possibly redeem them for cash.

To implement a loyalty system, you need to have some way to preserve up with your customers' accrued points (or whatever sort of measurement you use). This ought to be completed by maintaining records of a customers' transactions in a database. Goldstein and Korotzer recommended tying the data to a customer's credit card quantity. Every single time a consumer tends to make purchases with a certain credit card, a record of the acquire is recorded along with the credit card quantity. In this situation, if a consumer employed a various card than in previous purchases, her existing loyalty account would not get additional credits.

You ought to try to make it simple for a consumer to know how several points they have. Out of sight, out of thoughts, as the old saying goes, so make sure your consumers are conscious of how a lot of points they have and how numerous more they need to redeem their rewards.

When you begin the procedure of deciding on the specifics of your loyalty system (specifically what participants will get, and how much they have to buy for redemption), Goldstein and Korotzer argue that you should discover your company's economics as deeply as achievable. Two crucial statistics to examine are the lifetime worth and acquisition price of your customers. This will better help you determine how significantly you can afford to give to your customers. An additional vital consideration is exactly who gets to participate in the plan. You could select to only extend an invitation into the plan to the prime 20% (or whatever percentage generates the majority of your revenue) of your consumers. If there is a segment of your client base that represents the majority of your income, then it tends to make sense to concentrate your advertising and marketing dollars on that group.

One more point that Goldstein and Korotzer emphasized is that your loyalty system must be cross-channel. In other words, if you operate a physical retail location and take orders by phone in addition to your web web site, the loyalty system ought to extend to all of the channels. Steer clear of confusing your consumers. Make it straightforward for them to obtain credits and cash in on their loyalty regardless of what channel they use to make purchases.

Loyalty programs have been around for years in particular industries (i.e., airline frequent flyer miles) but are just beginning to obtain traction with a lot of retailers. If you sell retail, you must start the method of researching the implementation of a loyalty program now - before your competition does. Feel free to contact Work Media for info on implementing a loyalty plan for your internet internet site. get app for business loyalty program remove frames