Loyalty Programs on the Rise
Wednesday, April 8th, 2009
Companies are hard at work trying to lure consumers over to their side of the fence. Lower prices and better service were the two main ways to accomplish this task in the past. Tightening economic times have meant that companies have had to become more creative to get the consumer into their camp. Loyalty programs are on the rise in an effort to meet that need.A loyalty program is set up o that consumers register with a company and provide the company with a name, address and other pertinent information that the company uses to promote events, special packages and other programs. In return for registering with the company, the customer usually gets discounts on purchases, builds up points to go towards vacations, free travel options, or other special rewards.
Companies have used similar programs in the past where consumers paid for the privilege of being part of the loyalty program. Most of these paid programs have been replaced by free programs. The travel industry has recognized that customer loyalty is more important that a few dollars for a membership fee.
The main problem with loyalty programs is that they all tend to issue a card for consumers to present when using the company that sponsored a particular loyalty program. That means that as the loyalty programs continue to grow and more companies add them, consumers will be walking around with more loyalty cards than a wallet can hold.
Despite the annoyance of carrying around a wallet or purse crammed full of loyalty cards, it is likely that consumers will continue to register and take advantage of all the discounts and specials that loyalty programs provide. The tighter these economic times come then the more consumers will be looking to the travel industry to see what is being provided to make travel worth their time and their limited money resources.
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