Are Loyalty Programs Worth It?

Yes, they are according to our small business and consumer research. Seventy percent (70%) of consumers are willing to share personal information to obtain loyalty points, coupons, deals or some sort of reward in return (2015 Local Search Survey). This personalized data allows businesses to know when consumers have been in their stores, what they purchased, and how often they redeem promotional offers. This priceless information affords businesses the opportunity to run analytics to determine what promotions are driving more sales. Through testing, businesses can determine what promotions change consumer behaviors and which ones don’t and just reward consumers for things they would normally do.

The good news for Loyalty providers is small businesses need help in this area as well. According to our 2015 small business advertising survey, one in five businesses (20%) stated loyalty marketing was a top area they need help with in 2015.


So, how can a small business implement a program?

When Choosing Loyalty Providers Consider the Following:

Integration between systems is key. Find out how well the loyalty system integrates with your POS and CRM systems. This is important to ensure you gain the optimum capabilities. Your CRM system could be something as simple as MailChimp, Constant Contact or more robust systems like Whatever, you choose you want a loyalty system to work with what you already have.

Basic functionality is critical. Make sure the platform offers and tracks loyalty points, statuses, and lets you print promotional messages on your receipts. Utilizing these basic functions will allow you to get started with a program that you can build on.

Integrate with your current marketing plans. Work on your marketing plan to determine how you want your loyalty program to interact with your customers. Will you use email or some other form of outreach? Customer loyalty programs alone don’t create loyalty, they only serve as part of the process. At the end of the day, forming strong, healthy relationships with consumers does more for loyalty than anything else.

Finally, you need to be able to afford a program. You should expect to see a positive ROI within ten to twelve months.


For more information on how we can help small businesses or service providers working in the local space, just send us an email Here.



Jason Peaslee

Jason Peaslee is the Managing Partner of Thrive Analytics, a marketing research and analytics consulting firm. His career spans more than 20 years in marketing, advertising, product development, research, and business management. Before founding Thrive Analytics in 2010, he held several senior leadership roles at AT&T, Reynolds & Reynolds, Berry Network, & The Berry Company.

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