Is this the perfect time for loyalty programs?

Despite this year’s grey economic landscape, experts note that there will be a surge in consumer loyalty. Consumers, who know what they like, are looking to have their money work more for them and get them the greatest value possible.

Last December, in the midst of news about disastrous financial losses, falling stock markets and bank collapses, Airmiles (the oldest loyalty program in the United Kingdom) issued a little-publicized but very promising press release. The header read: "Airmiles predicts loyalty boom for 2009."

English style
In the press release body, the company supported the headline with the results of its latest market research conducted in United Kingdom during November 2008, which uncovered the following findings:

• 95% of Britons have collected points in loyalty programs.
• 9 out of 10 people plan to redeem their points during 2009.
• 61% plan to take advantage their loyalty programs to stretch their budgets this year.
• 96% of Britons are members of a loyalty program.
• 64% belong to three or more loyalty programs.
• More women than men have a high probability of taking advantage of most of loyalty programs in 2009: 65% women vs. 59% men.
• Belonging to three or more programs is more popular among women than among men: 72% women vs. 51% men.
• Membership loyalty programs are more common as age progresses: 46% of people between 18-29 years belong to three or more programs, vs. 56% of people between 30-39 and 67% for people 40 and older.
• 25% of the population expected to take fewer vacations in 2009, vs. 14% for Airmiles members.

Although the details of the information disclosed on British loyalty have little relevance to the Mexican market, the general sense of its release does. England, being one of the hardest-hit countries by the global economic crisis, is seeing this as the perfect time to prove the relevance and effectiveness of its loyalty programs.

Andrea Burchet, the Director of Relationship Marketing for Airmiles, reported: "In this adverse economic climate, people are looking for ways to make their money work more for them and get the most value possible. The loyalty programs are ideal for expanding the value of your spending.

"We have begun to see an increase in the number of new members joining the program ... and predict that members who have forgotten their Airmiles balances will return in 2009 to see the benefits of receiving rewards ... for their daily spending."

More value
Like the UK's Airmiles, in Mexico and the rest of the world there are hundreds of companies that are tackling this difficult year with optimism, knowing that their loyalty program is a key tool for retaining customers.

American Express, Hotel Fiesta Americana, Mexicana and Soriana, are just some examples of companies in Mexico that will benefit most from their loyalty programs to retain customers and even gain market share from their competitors.

Similarly, a greater number of companies that currently do not offer the added value of a loyalty program to their customers are accelerating development of such programs. Although this latter group will not see the same extensive benefits as will companies with programs already in place, in the long-term, their results will be great.

Consumers that are aware of their spending appreciate the rewards that come with their purchase. This year’s circumstances can set, re-affirm or destroy the lasting relationships between consumers and businesses.

Mexico is still far from reaching the levels of penetration and relevance revealed by Airmiles in United Kingdom. Here the figures are found only in the dreams of the most ambitious marketers that will take the time to get there. However, this year has already seen more and more companies in all industries use this economic crisis to position themselves in the market.

Is your company taking the boom that Airmiles predicted seriously for 2009?

ampersand dentro de las 50 empresas más innovadoras de México

Luis Miguel Díaz-Llaneza L. D, Director General de ampersand
en la alfombra roja de la ceremonia de premiación de las 50 empresas más innovadoras de México.

Luis Miguel Díaz-Llaneza Director General, Juan Carlos Bribiesca Director Comercial, Blenda Medina Gerente de Calidad y Homero Ozuna Sub Director de Tecnología

(Personas en esta foto de izquierda a derecha)

Luis Miguel Díaz-Llaneza, Director General de ampersand

recibiendo el reconocimiento de ampersand como una de las empresas más innovadoras de México.

Este reconocimiento lo recibe ampersand a través de su proyecto amperbono, ¡la solución integral de incentivos para las empresas! http://www.amperbono.com/.

How can you retain customers?

With the right approach, you can develop and implement a loyalty strategy to strengthen the relationship between your product and your customers, and in doing so, raise the profitability of your business.

Believe in loyalty!
If we transport ourselves into the world of management, statistics, major tactics and methods, I’m sure you will read or hear much about focus groups, consumer-focused organizations, one-on-one marketing and many other concepts and models that teach how to create relationships with customers.

If you have read all of these concepts, I am sure that you have wondered exactly how they can be applied to your business or how you can make them work for your clients and your actual business practice.

The truth is that all these concepts can be extremely beneficial for business, but the accurate and systematic implementation of the concepts is not what make them successful. They are successful if they are used as tools to achieve a broader strategy: to connect with customers and create loyalty.

Establish a real connection
In today’s world you can establish a real connection with buyers, meet their needs each day and learn more about their preferences through a well designed and focused loyalty strategy. http://www.8ampersand.com