Loyalty and the Economy - The New R Word!

The R word is being bantered about from Wal-Mart to Wall Street. Are we in a Recession? Is one coming? Who knows! One thing we do know for sure, the economy is slowing down and there has never been a more important time for business owners to lead by example with innovation, value and customer service.

When the going gets tough, the tough go shopping! How can we deliver this message to a value strapped consumer looking to reduce or eliminate certain aspects of their budget? How can we rise above the crowd of competition to drive consumers to our brand? Can we attract MORE customers during a slow down? Can we offer more value and better service without discounting? How can we deliver this message without spending a fortune on advertising?

Whenever the R word of Wall Street surfaces, another R word in marketing becomes even more important. That R word is Rewards. A properly designed rewards program not only delivers value, it avoids discounting at the same time. When protecting the profit margin becomes paramount, Rewards are key! Another important R word for marketing is Reminders! A recent consumer study indicated the two most important reasons in helping consumers choose certain brands were Rewards and Reminders. When these two are combined, the potential for increased profits and visitation are almost guaranteed.

No matter which company or options we might choose, an effective rewards and loyalty program is essential during these economic times. Instead of acting behind the curve, maybe we should lead by example. There are a number of low cost solutions customized for small and micro business owners that are simple, inexpensive and proven. If we are concerned about our bottom line and the forecast ahead, the time to implement these solutions is right now!

Michael Layne
Michael.A.Layne@gmail.com


(Thanks to Mr. Steve Schroeder for his thoughts in this article)