According to Jupiter Research, a worldwide Internet research and analysis company, almost 75% of the United States shoppers belong to at least one loyalty program. Loyalty programs are truly the trend these days, but one has to wonder, are they really worth it? Yes, they are.

Loyalty programs use basic logic. Offer an incentive to your customers and they will keep coming back for more. And why not? Think about it. If Joe’s coffee offers you a free cup of coffee after purchasing 11 cups, and Wanda’s Coffee does not offer you anything, what is the caffeine-addicted consumer going to do? I think the answer is obvious. He or she is going to visit the coffee shop that offers a free coffee in return for customer loyalty. It really is that simple.

Incentive programs are all in the execution. Remember, when you decide to incorporate a loyalty program, make sure potential customers know about it. Advertise it! Create a fun, engaging campaign to ensure your potential and returning customers know, off the bat, that they are going to receive a reward for returning to your business. After all, what good is an incentives program if no one knows about it?

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