NOW mag looks at the idea of why associations should use and think about loyalty reward programs to drive member engagement and increase suppport.

1. Loyalty programs continue to help small- and medium-sized
businesses generate regular customer engagement, according to
a recent survey. It’s a model that works in associations too.
If you were to audit the contents of your wallet, chances are
good that you’d find at least one grocery store rewards card or
frequent-visitor punch card—those ones where, after you buy
five ice cream cones, the sixth is free. Possibly, you’d find quite
a few more than one.
Loyalty programs like these have been around for a while and
likely won’t be going anywhere anytime soon, according to
recent research.
A BIA/Kelsey survey of small- and
medium-sized businesses (SMBs) found
that 38 percent of small businesses offer
some kind of loyalty program, with an
additional 21 percent saying they will
probably start one in the next 12 months.
Those numbers are nearly identical to
surveys from years past, the group
reported. Small businesses also
estimated that over 17 percent of their
total business would be generated by
customer acquisition programs such as
discounts or daily deals, which may or
may not be part of a loyalty program.
“The data indicates solid interest and
intentions in loyalty programs, which are
becoming an increasingly important tool
for customer retention,” Steve Marshall,
director of research at BIA/Kelsey, said
in a statement.

2. “Going forward, we believe the proportion of business
generated from both loyalty programs and promotions
will rise significantly, as SMBs increasingly tailor their
offerings to frequent customers and specific customer
segments.”
Member loyalty programs are a natural in associations,
too, where they can give a boost to meetings and events
and increase member involvement in association
activities. “In our research we’ve found that most
Americans belong to over 10 loyalty programs, and
roughly 180 billion memberships and loyalty programs
exist in the U.S. alone,” said David Carrithers, founder,
president, and managing director of Affinity Center
International, which runs a loyalty program for
associations. “It’s part of our culture; it’s part of how
people do business nowadays.”
A successful loyalty program is one that goes beyond
tactical thinking—relying on conferences or products or
training seminars as ways to build relationships with
members, Carrithers said.
“A well-thought-out, strategic loyalty program allows an
association to stand out 365 days a year and allows the
member to build positive engagement memories,” he
said. “One size doesn’t fit all though, so make sure you
are thinking of all your members and what will drive
their behaviors. Think through the whole program and
build it into the overall value of membership.”
Employing a loyalty program that gives members
positive engagement experiences will only benefit the
organization, said Carrithers. “Associations will see
more committed, proactive members who connect
with the organization more frequently, which in turn
drives up renewals.”
Despite the benefits, in a recent informal poll of
attendees during a session at ASAE’s Annual
Meeting & Exposition in Atlanta, “only 13 people out
of the 250 there said they offer a loyalty program,”
Carrithers said. “Then I asked how many personally,
or for the office, are members of a frequent flyer
miles or credit card points program, and all but two
raised their hands.”
What approach has your association taken with
loyalty programs? Answer our poll question below
and share your story in the comments.
Read Online http://associationsnow.com/2013/08/small-businesses-stay-loyal-to-
customer-loyalty-programs/