Loyalty programs help businesses maintain steady profits
November 21, 2013

High-quality gift card programs and loyalty programs can help small and medium-sized businesses experience continued revenue growth even after the rush of the holiday shopping season. The end of the year comes and goes relatively quickly, meaning many retail organizations may suddenly find themselves struggling to retain such large sales numbers in the weeks and months immediately following the end of the season.

As a result, stores must think of creative ways to both retain existing customers and attract new demographics to ultimately rest easy knowing that a spike in sales during November and December isn't merely a flash in the pan. The marketing association Loyalty 360 recently cited data from the "2013 COLLOQUY Loyalty Census" that said department stores and other retailers have witnessed significant benefits from implementing engaging loyalty programs. The study found the average U.S. household is an active member of nearly 22 different membership programs offered by their favorite brands. Department stores across the nation have measured 70 percent growth in loyalty program membership since 2011.

"As the economy slowly breathes new life, loyalty programs have gained increased awareness," Bulking Up author Jeff Berry, senior director of knowledge development and application at LoyaltyOne and research director at COLLOQUY, told the organization. "We expect continued growth as increasingly sophisticated programs revitalize engagement with existing members and attract new participants."

Aside from department stores and larger retailers, small and medium-sized businesses also have the potential to leverage the full benefits of loyalty programs. However, innovation news website PSFK said these initiatives should always be a reflection of the brand's dedication to a quality customer experience.

Investing in tools that make it easier to process rewards and payments through loyalty programs can make all the difference in allowing retailers to retain the revenue levels acquired during the holiday season well into the future.

Nexus: G-WEBCD5