Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Give Loyalty Program Members Prestige

Posted by: Today's Tip Contributor on September 8, 2010

Customer loyalty programs—sometimes called frequent shopper programs—reward customers for their continuing business. When well-designed, the loyalty programs motivate customers to keep coming back in order to obtain the rewards. Overall, the reward most popular with customers is a percentage discount on future purchases of items selected by the customer. Other popular rewards include discounts on items selected by the retailer and a free gift when a certain number or dollar value of purchases have been completed.

One selling point for shoppers often overlooked by retailers is the sense of prestige that participation gives. According to researchers into frequent shopper programs at the University of Pennsylvania and University of Southern California, people like to be recognized for store loyalty.

So to get the most from frequent shopper programs, be able to answer "Yes" to these questions:

1. Do the enrollment materials, the enrollment procedures, and the participant card all clearly refer to the customer as a "member?"

2. Do you have multistep programs, in which a member can move from green to gold status, for example, by increasing the total amount and/or the frequency of purchases?

3. When the customer shows the card to the cashier at the time of checkout, does the cashier give extra acknowledgement, such as looking at the customer, smiling, and saying, "Thanks for being a green step member?"

Bruce D. Sanders, PhD
Consulting psychologist
Vacaville, Calif.

Post a comment



Want to improve the way you run your business? Entrepreneurs, academics, and consultants from diverse industries offer practical advice on a variety of topics each business day.

To submit a tip for consideration, first check our archive of previous tips to make sure you're not repeating a tip someone has already contributed. Then send the tip to Small Business channel contributor Michelle Dammon Loyalka. Because of the volume of material she receives, she may not respond to each individual.

BW Mall - Sponsored Links

Buy a link now!