Jennifer DiPietro has been managing B2B gift card programs since 2010. A lover of social media, she has recently decided to get back into blogging as well as delve deeper into the world of marketing. Native to New England, she enjoys the beauty of the coast, but also loves the cold, snowy winters. She is obsessed with Boston sports and the Denver Broncos.
It's the ultimate question that marketers would love to have the answer to, how can retailers deliver winning strategies for their own loyalty programs? Loyalty drives sales, today, tomorrow and in the future, but how does a retailer keep loyalty fresh? Currently, U.S. households participate in over 20 loyalty programs, but less than 10% are actively using their accounts. Retailers need to produce winning strategies to have a successful loyalty program. Based on the existing loyal customer base, 37% of retailers believe that customer retention will be the #1 contributor to growth in the next 3 years. This customer retention correlates to same-store sales. 73% of smartphone users would like to connect their loyalty programs directly to their mobile devices. Recognition and rewards need to be differentiated. There is no one size fits all with rewards. In fact, lack of differentiation hinders program adoption. 69% of loyalty program members want to receive personalized discounts. Tracking technology allows retailers to gather shopper purchase history, spend, and browsing behaviors, allowing for retailers to offer personalized discounts. Lastly, well-planned implementation for loyalty programs is critical; the first 6 months of the launch being the most critical time for a loyalty program. Almost 30% of retailers rank store loyalty as a top 5 technology-related challenge in their industry. Read the infographic “How Sweet It Is: The Satisfaction of a Successful Loyalty Program” here!
New research suggests that the best companies (top 20%) are a third more likely to use non-cash incentives, such as travel, merchandise, and gift card awards, in their sales incentive programs. The study, which was unveiled last week, indicates that these awards are critical in getting the best performance out of sales teams. The respondents surveyed were asked to identify their top three choices that are most effective at yielding the strongest sales performance. While financial compensation is still tops, the trend has really changed over the last year. Back in 2012 98% of respondents preferred financial compensation, compared to just 76% this year. The impact of financial compensation is being considered less of a dominant “no-brainer” in sales. The runners up include the non-cash incentive programs, gift cards, travel, merchandise, etc, designed to augment the financial leverage that employers have over their front-line sellers. The highly successful organizations recognize that today’s sales personnel and account managers require a far more complex managerial landscape than their predecessors. They are aware that there is a need to manage on a more holistic level and not just consider meeting quota expectations. To Review the complete study along with recommendations for your company, visit the IRF here!
Considering setting up a wellness program for your employees? New evidence shows that an investment in a wellness program returns two to five times the cost, directly to the bottom line. For every dollar invested companies are saving between $2 and $5 on healthcare benefits and sick leave payouts. Wellness programs also improve overall employee engagement.
Millennials, those who currently are in the 18-33 age range, will make up 75% of the workforce by 2025. This generation posses an entirely different outlook on workplace culture than the generation before them. Technology is the primary Millennial influence, both in and out of the workplace. What are the best incentives for millennials to be motivated? Growing research shows that point system incentive programs have the highest success level, especially with Millennials. These employees want to not only be recognized, but they also want choices in how they are rewarded as well. Points programs are virtually foolproof, easy to understand, appeal to the interests of many different types of participants, tend to have higher participation rates, and are just plain fun! One amazing employee points program incentive model is the Values In Action program at CVS/pharmacy. An online rewards system where colleagues and managers can recognize one another by granting points that are redeemable for merchandise, travel vouchers, gift cards, and even the option to make a charitable donation. While points programs work best for Millennials, they can be customized for any diverse workforce. For more information on why points programs are so popular check out this article by Quality Incentive Company.
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