Customer connection is arguably the most important aspect of running a business. Regardless of the industry, product, or service, the goal is to make money. Marketing 101 dictates that maintaining existing customers is far more fiscally rewarding than courting new ones. Therefore, customer satisfaction is always top of mind.

In addition to providing quality products and convenient service, businesses must look for innovative ways to connect with customers. Loyalty and incentive programs are one common method to encourage repeat business, increase customer consistency, and promote brand loyalty. These programs are generally a win-win for both the customer and vendor. Taking a step beyond loyalty programs, customer retention involves more than purchasing incentives; it’s about understanding the customer, constant and consistent branding, and investigating new marketing channels such as social media and email.

The range of value from a customer loyalty program is broad. At its most simplistic model, retailers promote in-store reward programs that are tracked on business card-sized punch forms or through an index card filing system. Smart marketers with the necessary resources are able to take the programs one step further to capture more information on current customers. Either at the point of sale, on the receipt, or through a Web site visit, consumers are prompted to enter a loyalty program by providing an email address in order to receive frequent promotions, announcements, and coupons. In addition to email addresses, residential and survey help a business create more personalized and targeted direct marketing campaigns.

A 2009 marketing census published by LoyaltyOne and Colloquy suggests the average U.S. household is enrolled in 14.1 different loyalty programs, and is active in 6.2 of them. From the simple to complex, they are designed to offer some form of incentive to an active base. Program goals should be determined up front, as well as the level of promotional marketing accompanying it. Keep in mind that the advent of social networking encourages a dialog for consumers. Mixed with traditional methods of coaxing customers, Web-based initiatives provide an exceptional combination.

Frequent Customer Cards

Businesses are able to engage customers with frequent customer incentives. Easy for retail- or restaurant-based companies to create, customers appreciate a reward for loyalty.

Point- or punch-based card systems are managed internally and are ideal due to the easy implementation, management, and low start-up cost. However, technology does pose a disadvantage to printed cards, as they run the risk of being counterfeited. Businesses weary of managing paper have the option of a card-based system, typically provided by a third party.

For example, eCard Systems supplies gift, loyalty, and stored-value card systems to the retail, restaurant, and service industries. Servicing small, single-location merchants and franchise companies, eCard offers loyalty card programs that function on point of sale (POS) equipment, but operate independently from credit card processing agreements. The eCard system requires both a start-up cost and monthly fee.

LoyaltySpace is a complete system designed for businesses to setup and manage a customer loyalty card program. The system provides businesses with online software that acts as a database that tracks customer points while also allowing businesses to contact and market to these customers. Attractive and durable plastic cards allow businesses to provide customers with a way to represent membership. An optional hardware terminal allows the organization to capture sales details at point of purchase. Additionally, an optional barcode scanner speeds up transaction entry at the POS. LoyaltySpace is a hosted software solution, so users don’t have to install software. An Internet connected PC or wireless Internet access at POS is required for the terminal.

For card-less rewards programs designed for storefront businesses, Sterizon offers wiRewards. The company’s wiZit handheld is all that is needed to implement the program. A customer’s email address or phone number acts as a membership identity. Once signed up, on each subsequent customer visit, an email address or phone number is mentioned to a business representative to receive reward points for the visit. The business representative uses the Sterizon wiZit device to validate the membership and credit the points accumulated. Business owners are able to view and analyze activity using the Sterizon Web Portal. Customers can view accumulated points online. Reward points redemption is also completed through the Sterizon wiZit device.

Social Networking

One of the easiest ways for companies of all sizes to remain in tune with their customer base is through social media. While not loyalty programs per say, customers that sign up for Facebook, LinkedIn, or Twitter feeds are privy to special sales or promotions offered by a business at a given time. These sites promote loyalty by offering a public forum for consumers to “follow” or “like” a company or brand. Additionally, they provide a communication channel for marketers to hit a target group of current or potential clients that are interested the company.

In an in-depth loyalty study of its members, the National Restaurant Association—in partnership with Loyalty 360 and rDialogue, investigated the level of penetration of loyalty programs in the restaurant industry. The study found that 77 percent of respondents said loyalty programs helped drive business during the economic downturn. Additionally, it was unveiled that 74 percent use social media to support loyalty programs. Facebook was the most common social networking site used, with 65 percent of respondents; Twitter second at 40 percent; and blogging at 17 percent.

Often free, these outlets enable customers and businesses to interact on a daily basis, whether it’s offering promotions, discussing new products, or simply sharing relevant industry happenings.