Prairie Trail Logo Prairie Trail Software, Inc 3821 Beaumont Lane
Plano Texas 75023
Main Office: 972-618-4199

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Types of Loyalty Systems

Making Loyalty Profitable
A discussion of how to profit from different types of loyalty functions

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Loyalty Systems for Profit

Loyalty Programs: A way to increase profit

So, you think you want to do a loyalty program. What type do you want to do? There are many different types of loyalty programs out there; Discount cards, points systems, multiple ways of providing rewards to the customer, multiple prize awarding systems, coupon tracking systems, and more. Will you make a profit with your choice?

We always ask first what the cost will be. We are only human. We need to have a feel for whether or not we can afford to do something. So, we explore what it means to offer a loyalty program hoping that it will bring in more sales and thus, more income.

However, once we have made the decision to do some kind of loyalty program, the next important question has to be: how can I make a profit from offering a loyalty program to my customers? A loyalty program should be a profit generating system and not just a cost to you.

To answer that, we need to dig into what types of loyalty programs are available, what makes for a successful loyalty program, and what management systems are needed in order to make the loyalty program successful not just for the shrewd customer who figures out how to cut their costs but also for you, the merchant who is offering the loyalty program.

As with any new venture, we learn a lot from doing the venture. We start out often with just a broad idea. Then, we learn more about it and what could be done. In each case, the resulting business case will be unique to our market and how we want to operate. This is especially true for loyalty programs.

The best loyalty programs are integrated into the marketing efforts and help identify those to whom special offers will pull back in.

The other main aspect is to use the loyalty program to find out what our best customers buy, get them to try new products, and track the sales to make sure that we are providing the right products for our customers.