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Promotional Products and Loyalty Programs
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Posted On :
Mar-26-2010
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Article Word Count :
459
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The knowledge organization Incentive Marketing (IMA) have taken a closer look at customer loyalty and how purchases are influenced by for instance Promotional Products. They interviewed over 1,000 American companies, both large and small with some stunning, relevant results.
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The knowledge organization Incentive Marketing (IMA) have taken a closer look at customer loyalty and how purchases are influenced by for instance Promotional Products. They interviewed over 1,000 American companies, both large and small with some stunning, relevant results.
In the study, Incentive Marketing (IMA) concluded that 43% of the respondents said loyalty programs led to more frequent purchases, and 16% said the programs cause them to choose one company exclusively.
In the study, it was concluded that loyalty programs were an effective way to gather data about customers. But not only that - members of loyalty programs gave away some interesting information about purchasing habits:
43% of members said loyalty programs lead to more frequent purchases. 16% said loyalty programs caused them to choose one company exclusively. Once a customer joins a loyalty program, they tend to increase spending by an average of 27%.
Respondents also commented extensively on the giveaways and Promotional Products available and that could be redeemed through Loyalty Programs.
In the study, respondents stated that Non-cash awards are more difficult to attach a monetary value to. This is not a bad thing. Therefore, when participants focus their thoughts on the positive attributes associated with the award, it is ascribed a higher value. This is extremely positive, since Promotional Products are a generally very cost competitive.
Cash incentives tend to be aggregated with overall compensation. Non-cash incentives tend to be kept separate from compensation, thus standing out as rewards for performance. When a non-cash award is something that a participant would not purchase with cash on his or her own, the participant can justify the award. Being able to justify the award means it has greater power to be motivational.
Non-cash incentives have trophy value and are more likely to be acknowledged than a cash award. There are social taboos associated with discussing cash. Thus, cash lacks the social reinforcement attributes which increase the perceived value of the award over cash.
These findings are significant for Promotional Marketing companies and crafting marketing Strategies. Never before have such valuable information been available clearly showing how important, and well perceived the Promotional products are.
If you are currently running a loyalty program in your organization or with your customers, you are well advised to consider increasing the Promotional Product Element and cut back on the cash rewards as they tend to be aggregated with over all income. You will, as the study shows have better results with Promotional Products.
If Loyalty marketing has previously not been practiced in your marketing mix, this study is a clear indicator that Loyalty building is good for business that that Promotional Products will help establish the success rate of the program.
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Article Source :
http://www.articleseen.com/Article_Promotional Products and Loyalty Programs_14645.aspx
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Author Resource :
DiscountMugs.com is a large distribution company based in Miami, Florida. They are web-based and factory-direct which allows them to keep prices lower than the rest of the competition. They also have a huge selection of promotional products from wine glasses and champagne flute to martini glasses and tote bags.
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Keywords :
promotional products, tote bags,
Category :
Business
:
Marketing
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