What Are Loyalty Programs? Freebies! Every $50 spent earns the customer a free item. Use a tier system to reward initial loyalty and encourage more purchases. Gold Level, platinum level, etc. Charge an upfront fee for VIP benefits. Amazon Prime Non-monetary programs PATAGONIA’S “Common Threads” helps customers resell their highly durable Patagonia clothing online via Patagonia's website.

Loyalty Programs Partner with another company to provide all-inclusive offers. Dog food points and vet clinic discounts Make it a game! If you earn enough points you are eligible to compete in a game for a chance to win prizes.

Customer loyalty programs should increase customer happiness and retention, and there are ways to measure these things Customer Retention Rate This metric is an indication of how long customers stay with you. With a successful loyalty program, this number should increase over time as the number of loyalty program members grows. Run an A/B test against program members and non-program customers to determine the overall effectiveness of the loyalty initiative. A 5% increase in customer retention can lead to a 25-100% increase in profit for your company.

Negative Churn Churn is the rate at which customers leave your company. Negative churn, therefore, is a measurement of customers who do the opposite: either they upgrade, or they purchase additional services. These help to offset the natural churn that goes on in most businesses.

Net Promoter Score NPS is a customer satisfaction metric that measures, on a scale of 1-10, the degree to which people would recommend your company to others. NPS is calculated by subtracting the percentage of detractors (customers who would not recommend your product) from percentage of promoters (customers who would recommend you). A score of 70% or better is what you want!

Customer Effort Score Customer Effort Score (CES) asks customers, "How much effort did you personally have to put forth to solve a problem with the company?" Some companies prefer this metric over NPS score because it measures actual experience rather than the emotional delight of the customer. 48% of customers who had negative experiences with a company told 10 or more people. In this way, customer service impacts both customer acquisition and customer retention. If your loyalty program addresses customer service issues, like expedited requests, personal contacts, or free shipping, this may be one way to measure its success.

Watch the Dragon’s Den episode for Magical Whiteboard. What suggestions would you make for the following promotional areas? Trade Show Set Up (WOW FACTOR) POP Displays (for stores) Sales Force Promotions Loyalty Marketing Promotional Tie-Ins Product placement Commercial Idea

Other Uses Turn it into wallpaper (like the chalk wallpaper) Kids rooms Nursery’s Brainstorm areas – workplace Toy Stores (Kids wallpaper for their doll houses, forts. Etc.) Commercial Idea Winner MKT PRINCIPLES– For Kids: (Amusement/Excitement) Somebody surrounds themselves with drawings and creates another universe with their drawings. For Adults: (Humor) Someone doesn’t like the situation they are in so they say “Hold on” and snap their fingers. They summon a couple of people to come in and (in a quick time lapse) cover the area with drawings and change the surrounding’s” The conversation then continues as the second person looks around in bewilderment and the first perosn is obviously delighted. Scenes: Business meeting turns into a beach.