Now Is The Perfect Time For Loyalty Marketing

The economic downturn has transformed a nation of spenders into a nation of savers. Merchants have to fight for every penny they earn, as well as cut back everywhere possible. This is what we hear again and again — that businesses need to keep the status quo, don’t make major changes and ride out the bad economy.

While being conservative can be good advice, this is actually a perfect time to start spending money!

The Time Has Possibly Never Been Better

While it may not be the time to spend $150,000 in a new fleet of delivery trucks for your catering company, it is absolutely the time to think about loyalty marketing. This is the type of marketing that keeps customers coming back to your business time and time again. A true understanding of loyalty marketing will help you see that the time to create a new program or improve an existing campaign has never been better. Customers are eager to find value and with businesses struggling or disappearing left and right, you have less competition for your products. It’s a favorable climate to give consumers a value-added incentive. Business owners can try tactics such as a “Buy-One-Get-One-Half-Price” campaign or maybe offering a free soda with the purchase of a sandwich and chips, etc. Give people a valuable reason to spend money at your business.

The Competition is Hiding

Many merchants — those who have not already closed their doors — are wary of spending any amount of money to attract customers. They are hoping to scrape by and weather the economic storm. This can be a smart move, especially if you have little capital to work with. After all, you don’t want to spend your last $2,000 creating a brand new loyalty marketing campaign or even worse, lay off an employee in order gather enough money to start a new promotion. My message is mainly for those business owners who have used loyalty marketing in the past and have found success. If you already have budgeted for loyalty marketing, this is an absolutely ideal time to step up your efforts. Customers, now more than ever, are searching for value.

That Value Message Really Works in Today’s Environment

There is no question that consumers are tightening up and that’s a good thing. Yet restaurants and bars are still open. Families still go out to dinner, albeit a little less frequently. All those folks eating at home still need groceries and they need gasoline to get them to the store. Believe it or not, the American public is still spending money. It just has become a little more prudent in doing so. And this is where you come in.

Consider increasing your loyalty advertising to let your customers and give them a reason to bypass the competition and buy from you instead. If you don’t have a loyalty program in place, now might be a good time to create one, at least within your existing customer base. During these times, people are always looking for deal, so give them a reason to come to you.

Don’t Wait – Strike While The Iron is Hot & The Economy Is Not

This is a limited-time offer. We’re Americans. We don’t stay down for long. The economy WILL recover and merchants who have been patiently waiting on the sidelines while their unspent marketing money gains interest will decide to re-enter the game. And when they do, YOUR program will be established with consumers. YOUR program will be performing. YOUR program will be growing as theirs is just beginning.

Less competitive noise and consumers out there looking for every deal they can find. If you understand that, let your loyalty program work for you. And do it soon.

Al Duggan is a specialist in loyalty card marketing and the VP of Business Development for Valutec Card Solutions, LLC, a Metavante (NYSE:MV) company, the country’s largest provider of gift card programs to small merchants. For additional details, please go to the Valutec website today.