The document discusses reasons for businesses to implement customer loyalty programs and tips for launching a loyalty program. It notes that there are over 3 billion loyalty program memberships in the US, with more than 71% of households earning $100,000 or more enrolled in a program. Successful loyalty programs are focused on customer engagement and retention rather than just transaction-based rewards, and increasing customer retention rates by 5% can increase profits by 95%. The document provides examples of different types of loyalty programs and gives 11 tips for launching a simple, easy-to-use program focused on customer needs rather than corporate goals.

1. Customer Loyalty
Programs
BOOSTING YOUR BOTTOM LINE WITH

2. FOLLOW ME ON TWITTER
@DARRENDEMATAS
BY DARREN DEMATAS
Darren DeMatas has 10+ years of professional marketing
experience working with large corporations and small
businesses.
In addition to having an MBA in Internet Marketing,
Darren is a Copyblogger Certified Content Marketer and
Google AdWords Certified.

3. Reasons Why
Customer Loyalty
Programs Matter7

4. There are 3.3 BILLION
loyalty program
memberships in the
US, an average of 29 per
household. (Colloquy)
1

5. 2
More than 71% of those
making $100,000 OR
MORE a year are enrolled
in a loyalty program.
(Software Advice)

6. 85% of retailers are
in search of ways to
add value outside of
discounts. (Colloquy)

7. It is 6-7 TIMES more
expensive to acquire a
new customer than it is
to keep a current one.
(White House Office of Consumer Affairs)

8. 75% U.S. companies
with loyalty programs
generate a return on
investment. (Experian)

9. 83% of members agree
that programs make
them more likely to
continue doing business
with certain companies
(Bond)

10. Increasing customer
retention rates by 5%
increases profits by up to
95%.
(Harvard Business Review)

11. Big Reasons Why
Customer Loyalty
Programs FAIL4

12. 97% of loyalty programs
are based on spending
money to earn money
(transactional rewards)
(Cap Gemini)

13. 77% of transaction-based
programs fail in the first
two years.
(Cap Gemini)

14. Overall, ONLY 25% of
companies reward any
form of engagement.
(Cap Gemini)

15. 56% of people don’t
join a loyalty program
because of privacy.
(Bond Brand Loyalty)

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17. Types of Customer
Loyalty Programs
5THAT WORK

18. POINTS PROGRAMS
REWARD CUSTOMERS WITH REDEEMABLE POINTS
FOR MONETARY OR NON-MONETARY ENGAGEMENT.

19. POINTS FOR ENGAGEMENT
(NON-TRANSACTIONAL)

20. POINTS FOR ENGAGEMENT
(NON-TRANSACTIONAL)

21. SPEND PROGRAMS
REWARD CUSTOMERS WITH STORE CREDIT BASED
ON DOLLAR AMOUNT SPENT.

22. EARN POINTS FOR
TRANSACTIONS ONLY

23. EARN POINTS FOR
TRANSACTIONS ONLY

24. TIERED PROGRAMS
INCENTIVIZE CUSTOMERS WITH STATUS BASED
REWARD LEVELS
BRONZE SILVER GOLD
Free
Products
Birthday
Gifts
Birthday
Gifts
Free
Shipping
Free
Shipping
Free
Shipping2X
Points
3X
Points
Exclusive
Items

25. THREE TIERED
PROGRAM

26. #VIBROUGE TWITTER SEARCH =
ENGAGEMENT & EXCITEMENT

27. GOLD
MEMBERS
GET FREE
SHIPPING

28. PAID PROGRAMS
CHARGE AN UPFRONT FEE FOR VIP BENEFITS

30. PUNCH PROGRAMS
CUSTOMERS MOVE TOWARDS A GOAL WHEN
PURCHASING CERTAIN ITEMS

31. BUY 5, GET 1 FREE

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33. Tips For
Launching A
Loyalty Program11

34. SIMPLE
start
1

35. start with your
EXISTING
EMAIL LIST
2

36. JOIN
make it simple to
3

37. LIKE THIS

38. NOT LIKE THIS

39. EARNING
make
rules simple
EARN 1 POINTSPEND $100
4

40. 100 POINTS IS WORTH $1
SPENDING
make
rules simple
5

41. launch in
digestible
chunks6

42. Don’t Overwhelm
Customers’
With Options
7Coupons
POINTS
Tiers
Fees
Punch Cards

43. END GOAL
have your
8 in mind
IMPROVE CUSTOMER ACQUISITION?
DECREASE CUSTOMER CHURN?
INCREASE ORDER SIZE?

44. EMAIL
AUTOMATION
use
9Automated Emails Get
119%HIGHER CLICK RATES
Than Broadcast Emails (Epsilon)

45. make it about
your customer
10 not about money

46. 11

47. LEARN ECOMMERCE
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