CBA: Membership has its rewards

These days the loyalty of consumers and contributors often depend on the consumer rewards program in which they are enrolled.

Be it the purchase of a product or service or a gift to a favorite charity, consumers feel entitled to receiving something of added value or recognition for their action. The benefit should be something of value that people want and will use. Many nonprofits and companies offer gifts (premiums) or benefits related to the product or service delivered, but to engender a real sense of belonging and loyalty individual perks or benefits should be part of a complete loyalty program that begins with special treatment of customers and donors, like:

a warm welcome and thank you to new and repeat customers/donors
special communications like, Presidents Reports or Memos to Members, birthday, anniversary greeting cards or emails
special “insiders” sales or offers
gifts to encourage automatic renewals and monthly giving

The Make-A-Wish Foundation® has a special arrangement with a number of airlines, hotel chains and Loyalty programs in which donors may contribute back airline miles and loyalty points to the Foundation, this program enabled it to grant more than 5,800 travel wishes last year.

A recent study by research firm InsightExpress (www.insightexpress.com) says that 50% of consumers in the country belong to one or more loyalty programs and of them, 56% said these memberships influence their purchases. It appears that more people now enroll in credit card reinstatement and car rental programs than airline programs. Consumers especially appreciate "preferred customer benefits" that offer products and services they enjoy and use frequently.

Non-profits that have restaurant/theatre member cards appear to be on the right track. Companies and not-for-profits would do well to design loyalty programs unique to their services and their markets.

The survey also reports that two-thirds of loyalty programs enrollees joined online, while 14% joined via email.

So, look for more information about loyalty programs from CBA’s LoyaltyeMarketing division.