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Happy Customers

3/31/2005

Consumers may see loyalty programs as a necessary evil for getting a sale price at a grocery store, or as a chance to belong to an elite group. Consumers may see loyalty programs as a necessary evil for getting a sale price at a grocery store, or as a chance to belong to an elite group.

Regardless of how they position it, loyalty marketing is important to brand marketersóespecially since new technology is helping contain costs.

Loyalty marketing programs have seen an annual growth rate of about 5% since 2002, according to Colloquy, a newsletter published by Frequency Marketing, Milford, OH.

Research by Maritz Loyalty Marketing, St. Louis, suggests that 66% of consumers say that discounts are the reason they participate in loyalty programs. But another Maritz poll hints that consumers just as easily cancel out of loyalty programs because of the length of time it takes to build up reward points. In the crucial 18-24 age group, 79% of consumers drop out from impatience.

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