Steven Wallace
I reviewed several surveys and studies, all compiled within the last several years, to find out the pro’s and con’s of customer loyalty programs. Here are some of the direct quotes and research summaries:
— National Restaurant Association: 50 percent of customers surveyed said they would be more likely to patronize a restaurant that had a loyalty program.
— AC Nielson Survey: More than 68 percent of U.S. households said that loyalty programs were important in their shopping decisions.
— Colloquy Talk: Despite the recession, more consumers across all demographic segments are participating in rewards programs than ever before.
My research showed that individual consumer participation in rewards programs was flat unless consumers found a value that would help them stretch their household budgets by earning rewards, gift certificates, fuel rebates, and cash back on their purchases.
For example, when I took my family to Gifford’s Ice Cream on Sunday, I was promptly given a $1 off certificate for my next visit. As much as I eat ice cream, this program could translate to $10 off before the year is over. Maybe that amount does not make you go “hmmmmm,” but what if I make a habit of shopping at 10 or 15 vendors that have the same types of programs. Now my $10 savings easily turns into hundreds.
If you do not have an attractive loyalty or reward program, your products and/or services will never get considered.
Two key demographic segments of the population are looking for loyalty and rewards programs harder than ever before: women’s participation has jumped 29 percent and Millennials (age 18-25) participation has jumped a whooping 32 percent. If you are a business owner and these two groups are shopping in your store, it might make sense to look at a loyalty program to ensure you keep them in your store. If you do not, I guarantee you sooner or later your competitor will.
Of special note, the Small Business Administration estimates that half of America’s small businesses will look for new marketing strategies in the next 12 months. Why not consider a loyalty or rewards program? If you have one, the Southern Midcoast Maine Chamber will advertise it for free on its new website as part of our Regional M2M Loyalty Program.
You may be wondering to yourself, “What is the chamber getting out of this?”
That answer is very simple: by connecting our local community members with local business, our region prospers. People stay employed, tax revenue increases, and business can expand and grow in a place where quality of life is important to us all.
By helping to accomplish these things, the chamber fulfills its vision and mission as an organization. I call that a win-win. If you want to see these things happen, too, please visit our website and consider membership in our chamber. At the end of the day, when we work together, we all win.
See you at a local business soon.
UPCOMING EVENTS: Back by popular demand is a Business Success Seminar “How to Write, Grow and Sustain a Blog” Tuesday, Nov. 27, 5 to 7 p.m., at Priority Group Business Center, 2 Main St., Topsham. The presenter is Jennifer Barbour. Registration is required by going to http://skl.sh/Paa5Ze.
Byrnes Hospitality Group hosts the Wednesday, Nov. 28 Chamber After Hours. Come to Byrnes Irish Pub, Station Avenue, Brunswick, anytime from 5 to 7 p.m. Make use of the networking power of the SMMC. Enjoy refreshments, cash bar and door prize drawings. This event is free to attend. Please register.
MEMBERS IN THE NEWS: The chamber welcomes Maine Veterinary Referral Center. To discover more about this business, go to www.midcoastmaine.com or download MyChamberApp for use on your mobile phone or tablet.
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