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Loyalty following

Loyalty following

Customer loyalty programmes are a tried and tested way to build a following, but if you’re just starting out should you do it in house, or join an established provider?

December 29, 2010 4:40 by

“For example, in the old days, people used to have their own in-house advertising departments. Nowadays, most brands serious about advertising use an agency because the agency has the specialist skills,” he adds.

”A hotel, for example, is very good at hospitality and looking after their customers, but in terms of the operations and other services you would go to an accounts specialist,” he says.

Browning stresses that the expertise can be of particular help when a supplier has a number of brands around the world as part of the program, which gives the supplier global experience in various sectors.

While business knowledge and expertise in the field are deciding factors, marketers say that the decision also depends on the size of the business. LaBelle says that it may be difficult for a small business to make the kind of investment needed for developing an in-house loyalty program.

Joining a third party program could be far more cost-effective for a small business that does not have a massive marketing budget, and it can benefit from the database and information available through partners in the program. As for large businesses; well, they have a choice, as always.

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