What is an online customer loyalty program? It is an Internet based fulfillment service that promotes a business to its existing customer base to build brand, loyalty and awareness. Online customer loyalty programs typically include online coupons and special offers that are only available to existing customers.
The delivery of these programs can be through a company's website or vie their newsletter. A company may also work with a third party provider that offers services for loyalty programs online.
The reasons these programs offer dramatic cost savings is the elimination or reduction of a businesses dependence on direct mail. Coupon mailers like Valpak, clipper or newspapers typical create coupon redemption that is 50-75% existing customers. With distribution costs of 410-20 per coupon redeemed, these direct mail and print media can be very expensive and not very effective. Using an online distribution vehicle like a website or email newsletter eliminates the print and mail costs.
Loyalty programs, by their nature, are designed to increase traffic to your store or restaurant from existing customers. Loyal customers tend to spend more, tell more friends about your store increasing word or mouth and are less likely to leave you over a $.50 cent coupon from one of your competitors.
Online loyalty programs also solve the issue of timing that so greatly limits the effectiveness of direct mail. By making your offers available at the convenience of your clients, rather than at the mercy of the USPS, you ensure that you wont see them across the street at a competitors' store because your mailer arrived last week and his arrived this week. Train your customers to go online and print their coupons at their convenience and you won't lose customers to timing.
An online customer loyalty program and coupon distribution system can save your business thousands per year in direct mail costs, increase your customer loyalty, word or mouth advertising and lock out your competition.
TJ Goulet is President and Co-Founder of Bythezip.com Directory, Inc. http://www.bythezip.com Operating as a business owner and sales manager since age 16, TJ has over 23 years of leadership experience and has hired and trained over 1,000 sales professionals.
Bythezip.com Directory, Inc. is TJ's seventh company. TJ's career has varied with businesses ranging from Insurance and Industrial Sales to Direct Marketing and Restaurants. Bythezip.com Directory, Inc. is TJ's first Internet Company. All of TJ's companies have been highlighted by a strong sales and marketing strategy that relies on the unique capacity of professional sales people and the idea that greater value and income can be derived from a sold product that a bought one. TJ Goulet has B.A. degrees in Economics and Management with emphasis on Mathematics from the University of Minnesota.