Do Customer Loyalty Programs Really Work?

It’s widely known that acquiring new customers is far more costly than keeping existing ones—anywhere from 5 to 25 times more expensive. Additionally, one recent study found that companies can increase their profits by a whopping 25 percent through a mere 5 percent increase in customer retention.

These are just some of the reasons why more and more companies are investing time and money into loyalty programs for their customers.

What is a customer loyalty program?

A customer loyalty program is a marketing strategy that retailers and other businesses use to reward repeat customers who purchase and use their goods and services. The benefits provided to the customers can come in different forms, such as rebates, discounts, coupons, merchandise or other promotions.

This marketing approach recognizes these repeat customers and encourages them to be loyal to the company. The more customers buy or engage with your brand, the more rewards they get.

Benefits of loyalty programs

Even though customer loyalty programs differ in their approach, they all have the potential to impact your sales. Each reward program is aimed at achieving the following goals:

  • Improve your company’s sales
  • Increase business through recommendations and referrals
  • Strengthen your relationship with your customers to retain them
  • Entice customers to keep returning to your company
  • Build your brand’s image
  • Encourage cross-product purchasing by existing customers

Types of loyalty programs

There’s no shortage of loyalty programs to choose from, so you’ll want to consider which one is best for your business and your customers. The following are 7 loyalty programs you may want to consider:

Point-based loyalty

Point-based loyalty programs are perhaps the simplest and most popular reward programs. In these programs, your customer base can earn points for things like repeat purchases, reviews or sharing a product on social media that can be redeemed for customer rewards and discounts on their next purchase.

Tiered loyalty

Tiered loyalty programs reward customers for their brand loyalty and for reaching certain milestones, which are usually based on the amount of money they spend. This type of program encourages customers to get to their next goal (by making more purchases) so they can get better perks, early access to deals and other loyalty rewards.

Paid loyalty

Paid loyalty programs, also known as fee-based programs, offer customers continuous advantages for a specified one-time or recurring fee. Companies that can convince customers to sign up are generally rewarded with customers who are actively engaged and frequently return to take full advantage of the benefits the program has to offer.

Value-based loyalty

Value-based loyalty programs are a way to incentivize customers based on their particular passions and values by offering to donate a percentage of their purchase to their favorite charity and enhancing the customer relationship. While these programs don’t reward customers directly, they tend to give customers a positive view of your brand and leave them feeling good about their purchases because they know they’re also helping a cause close to their hearts thus increasing customer value.

Cash-back loyalty

Cash-back loyalty programs operate through points whereby after spending a certain amount, a customer is entitled to money back that can be used toward future purchases at your business. These types of loyalty programs encourage customers to return to your business again and again, where they often spend additional money beyond their reward amount.

Another version of cash-back loyalty is when businesses offer credit cards designed to meet customer needs by evaluating the customer’s behavior and insights from customer data. For example, big box retailers may offer a credit card where customers save a percentage on their purchase every time they shop rather than reward points.

Punch card loyalty

While punch card loyalty programs were more popular when people did less of their shopping online, they can still be a fun and useful in-store incentive for certain businesses based on purchase frequency. In these loyalty programs, customers are typically issued a card that is “punched” every time they make a purchase that can be redeemed for a free treat after a specified number of purchases.

Coalition loyalty

Some companies may find it beneficial to join forces to offer a shared loyalty program where customers can earn combined rewards while shopping at both businesses. Partnering with another business that offers related products or services (such as a yoga studio and an essential oil company) not only increases cross-promotion, but it can show your customers that you’re attuned to their needs and thus increase customer engagement and create stronger brand advocates.

How to implement a loyalty program into your business

As a business owner, you need to prioritize the types of loyalty programs you want to implement to ensure you’re getting the best return on your investment. Here are a few tips for choosing the reward program that suits your business.

Use the right tools

The internet has made implementing loyalty programs easier since there are a variety of apps and platforms you can use to integrate them with your existing payment system. Remember to ensure that everything you schedule, digitally or offline, meets your budget target and is simple to apply.

In addition, it should provide a better customer experience.

Simplify your program

Try to keep it simple. Dealing with different types of customers requires that you implement a program that’s easy to use for everyone. For example, younger customers might not want to use older loyalty programs like punch cards, while older customers might feel uncomfortable with the modern app reward programs.

Consider the demographic of your customers, and try to choose a successful loyalty program that best suits their diverse needs.

Working with a professional marketing agency

Customer loyalty programs can help build your brand’s reputation, boost sales, create more awareness and emotional connections, and increase the number of loyal customers. If you’d like help creating a loyalty program or are interested in other marketing or design services to grow your business, the professionals at Brown Bag are here to help.

A great web design and marketing company should be dedicated to ensuring your site stands out among the crowd. Brown Bag is a full-service Atlanta marketing agency that is passionate about helping companies achieve their goals and reach that next level of success. Contact us today to see how we can help your business grow.

Elizabeth Roos

Account Manager

What’s in my bag?

“My bag is filled with a pen of every of color, three different snack options, a small multi-use tool kit, a game of travel Yahtzee, and … oh wait … I had to take that out because my bag was over the weight limit! Needless to say, I’m ready for anything life throws at me.”

No two days look alike for Elizabeth. She wears many hats to support the client services team, and rumor has it, she can switch them out using only her mind, just like Eleven from Stranger Things. She honed her mental powers at Washington and Lee University with a bachelor’s in art history. Prior to Brown Bag, she worked as an intern for Camp Twin Lakes, a local non-profit, and Tribe Inc., an internal communications agency.

When Elizabeth’s not running around our Buckhead office, you can find her hitting the pavement for half marathons, hiking, hanging out with friends and family, or checking out the latest exhibit at the High Museum.

Laurie Michaels

President

What’s in my bag?

“Family photos, assorted lists (with 6 kids, there are lists of lists), and depending on the day, the family pup, Lotto.”

During Laurie’s career, she’s worked in virtually every operational capacity, from strategy to execution to marketing to training. She can plan, she can evaluate, she can write things, she can manage things and she can sell things. She’s taken what she’s experienced and used it to synthesize comprehensive insights into how operations work well: that means equipping people, establishing processes, and driving results.

Basically, Laurie is a can-do gal with a lot of heart. She looks at Brown Bag’s goals and applies her talents to making sure we have what we need to reach them. Call that role what you will: Driven Leader, Level-Headed Project Manager, Committed Quartermaster, or One-Woman-Optimization Machine. We’re just thankful she looks out for us and our clients.

So, really: how can she help you?

Lindsey Lynes

SVP, Strategic Accounts

What’s in my bag?

“All the (cool) mom things, a quick laugh, an old school calculator, a professional book or two, and a stubborn refusal to fail.”

The only thing larger than Lindsey’s role at Brown Bag is the size of her heart. Coupling her enthusiasm with her deep concern for the people around her, she is a driving force that keeps Brown Bag moving successfully forward. As our VP of Strategic Accounts, Lindsey leads brand and business strategy for a portfolio of clients, as well as a team of marketing professionals. Aligning her client’s goals with the roadmap to get them there, she is focused on developing the right people and the appropriate solutions to ensure long-term success. Ever evolving and multi-dimensional, Lindsey leveraged her technical and business acumen to lead Vetlocity, a loyalty-based rebates and rewards start-up, and her passion for growing talent as the VP of People and Culture, before heading up her current team. With Brown Bag since the beginning, Lindsey combines her experience across marketing, HR, operations, and finance to bring the right mix of creative solutions to meet an organization’s needs.

When she isn’t guiding her clients or the next generation of professionals, Lindsey stays busy leading her two young children in many of the same things—positivity, showing up, and leading with grit and grace. Lindsey was born and raised in Georgia, but now enjoys calling coastal Connecticut home. She holds a BS in Marketing and Sales and a Certificate in Business Leadership from The University of Georgia and is SHRM certified.

Proudly Supports

Kids in Crisis, a non-profit organization in which trained Crisis Counselors help children and families cope with unsafe situations, family conflicts, substance abuse, mental health issues, school problems.

Jerry Lewis

SVP, Creative

What’s in my bag?

“A competitive nature is in my bag. I’m a very involved, hands-on kind of guy who would rather be an active participant than sit on the sidelines and watch. This is evident at my job. And it’s the experience I’ve gained by working with great people for many years.”

Working on multiple projects while being in several places at once may seem impossible, but not for Jerry Lewis. Although he’s never admitted to having been cloned, how else do you explain his ability to successfully lead a creative department, attend countless meetings, field thousands of emails, teach design classes and coach about a dozen different sports? Okay, we’re not sure how he does it either, we’re just glad he does. During his tenure as a Creative Director, Jerry has worked on big name clients like Pfizer, Allergan, Bridgestone Sports, Precept, Carvel Ice Cream, E-Z-GO, and Piccadilly Cafeteria to name a few. He has also received ShowSouth, Addys, CTAM Awards and has had his work featured in Communication Arts and PRINT.

One glance into Jerry’s office is all it takes to realize he’s a huge Gator fan, which makes sense considering he graduated from the University of Florida (which also helps explain his love of jean shorts and tank tops. Just kidding, he would never wear a tank top.) Jerry is also an esteemed graduate of the Portfolio Center where, as mentioned before, he teaches design. Outside of work, he is a devoted husband and dad as well as an amazing golfer.

Izzy Barrett

Senior Account Executive

What’s in my bag?

“A notebook, chocolate covered espresso beans, a book of jokes and the NY Times Best Seller magazine.”

If you’re looking for fierce enthusiasm with full attention to detail, you need Izzy. And with phrases like, “that’s Izztastic” or “let’s Izzify it” floating around the office, it’s clear she’s made a positive impression on all of us. As an Account Executive, Izzy’s skillset is golden. Day-to-day, she facilitates successful initiation, planning, execution, monitoring and delivery for her clients. She’s always open to a new challenge or helping her colleagues with a complex project. Izzy is sharp, eager to succeed and a compulsive over-deliverer. Prior to taking on her current role as Account Executive, Izzy led the sales team for an animal health start-up.

Outside of the office, Izzy enjoys staying active and playing in sports leagues, traveling and spending time with family.

Kelly Campbell

Account Director

What’s in my bag?

“My journal of quotes and ideas, a book, a snack, and some lip gloss because I like to do everything with an extra bit of style and sass.”

Witty, intelligent, and up for any challenge, Kelly brings her enthusiasm to everything she does. Whether she’s planning her next trip or preparing for a new business pitch, she keeps her passion for helping people at the top of her list. Prior to business development, Kelly lead talent acquisition and still drops in the talent office from time to time. Before Brown Bag, Kelly was an Executive Recruiter for The Intersect Group. She graduated with a degree in Intercultural Studies of Business and French from Wofford College where she was also a member of the women’s soccer team.

Outside of work, Kelly enjoys spending time outdoors, adding stamps to her passport, reading, writing, and dancing—and she’s always up for a new adventure!

Jen Cole

Senior Designer

What’s in my bag?

“Sticky notes, colored markers and miniature succulents to inspire creativity.”

Jen’s love for color and creativity is apparent in every project she touches. We say, ‘shine on, wild woman!’ And after you experience Jen’s inquisitive and vibrant personality, we’re confident that you’ll feel the same. Jen is a Senior Designer on our creative team. She digests requirements and deliverables in a snap, likely due to her experience with creative agencies and teaching at the Creative Circus. Jen attended the University of Georgia and received her Bachelor’s in English and Women’s Studies, as well as the Creative Circus where she studied Graphic Design.

Outside of work, Jen likes to play tennis, watch anime and hone her amateur gardening skills.

Jessica Gorman

Copywriter

What’s in my bag?

“Creativity, a giddy passion for beautifully written prose and a pack of gum for fresh breath.”

Jessica makes her role as an Account Supervisor look easy. She’s a creative thinker, team player and always up for a new challenge. Before becoming a Bagger, Jessica was a writer and on-camera personality for NASCAR. She graduated from the University of Alabama where she earned a bachelor’s degree in Public Relations.

Outside of work, Jessica enjoys traveling, taking Pilates classes, cheering on the Alabama Crimson Tide, curling up with a good book or trying a new local restaurant.

Kirsten Humphreys

Senior Front End Developer

What’s in my bag?

“A hard working, positive attitude with the uncanny ability to take whatever is thrown my way.”

A resourceful and astute problem solver, Kirsten has never met a challenge she couldn’t handle. As our Software Developer, Kirsten is responsible for front-end development and QA testing. No matter the task, if Kirsten’s on the job, it’s as good as done. Kirsten previously worked at Marc Jacobs and graduated from Savannah College of Art and Design.

Outside of work, Kirsten enjoys searching for her next favorite restaurant, exploring new cities and spending time with her nieces and nephews.

Dave Kuhn

Associate Creative Director

What’s in my bag?

“A trove of random references, movie quotes and impressions.”

As Associate Creative Director, Dave translates the strategic goals of each client and transforms them into thoughtful, clever and effective creative. Prior to joining Brown Bag, he worked on projects for well-known brand identities such as King of Pops, Clemson University, and notable spirit, beverage and industry clients. Dave also conceived and directed custom video content for Cox Automotive’s NASCAR driver teams and created award winning corporate design for Woodruff Arts Center in Atlanta.

Outside of work, Dave enjoys traveling with his lovely wife, visiting coastlines, single malts, playing with his dogs, listening to vinyl records and seeing live music.

Brandon Levoy

Director, Digital Marketing

What’s in my bag?

“My phone, wallet, a protein bar – and probably a dog toy or two.”

As a Senior Account Supervisor, Brandon strives to hone his talents at the intersection of thoughtful strategy and creative solutions. The combination makes him a skilled client partner -and one of our favorite players at company game nights. He is a designer and strategist at heart, with client experience across several industries, including campaigns for Publix, The Home Depot, Michael Kors, Whole Foods and Disney.

There’s no question about it – this guy is sharp. Brandon was Valedictorian of his high school before going on to graduate top of his class from the University of Florida. Outside of work, Brandon enjoys working out, eating healthy, drinking margaritas and hanging out with his fiancé and two golden pups!

Tricia Peters

Senior Account Director

What’s in my bag?

“A planner to stay organized, coffee for unlimited energy, a positive attitude and a sense of humor to keep things light.”

As Director of Strategic Accounts, Tricia (“TP”) manages projects with a cool, calm demeanor. Her determination to help others shines in her projects and random needs around the office. And her resilience is commendable. Not only has Tricia been in the Brown Bag family more than 12 years, she’s held several different positions during her tenure. But that’s not because she’s indecisive – she’s a quick learner and eager to bridge the gap whenever necessary. Simply put, Tricia is a dream come true for our team and clients.

Tricia enjoys traveling, spending time with family and friends, pushing herself at boot camp, spending time outdoors and cheering on her favorite football team, the Alabama Crimson Tide.

Brandon Sisia

Designer

What’s in my bag?

“I like to travel light and only stock up on the essentials. A MacBook computer, pair of headphones, a water bottle and my love of all things design.”

A young creative with an old-soul, Brandon comes to Brown Bag all the way from New York City where he attended Fordham University and graduated with a BA in Visual Arts. As a Junior Designer, he will be developing engaging design solutions while collaborating with our awesome team of creative Baggers.

Outside of business hours, you can find Brandon listening to various genres of music, learning to fish, or shooting hoops.

Rob Williams

Lead Front End Engineer

What’s in my bag?

‘Everything . . . it’s a big bag!’

Although he describes his role as that of an Interactive Henchman, Rob is an affable curmudgeon whose role at Brown Bag is continuously expanding because he not only meets every challenge, he crushes them like an SEC team playing in the national championship. Before Brown Bag, Rob worked for Internet Gaming Inc., where he did UI design for online gaming. He also worked for Virtual Magic where he specialized in Web and Flash development. Rob has a degree from AIA in 3D Modeling and Animation and a degree from SPSU in Game Design and Development.

Outside of Brown Bag, Rob is into volleyball, old cars, and collecting lawn trolls.

Randall Wunder-smith

Senior Copywriter

What’s in my bag?

“Empathy, honesty, a yearning for transformative truth and a sense of humor. Also: a terawatt-powered BS detector, which I self-apply regularly. Every creative needs one.”

Does Randall work at Brown Bag? Well, yes. But it’s more than that. Randall writes at Brown Bag. There’s a big difference – as big as the ideas he uses to propel our clients into brighter, more compelling stories for their businesses. And don’t let his penchant for wit and deadpan fool you. Randall’s a deep guy, ready to pour himself into understanding a client’s industry and build authentic connections with their customers, all with the right selection of the right words. It all started when he completed his BA and MA in English from Auburn University. He’s also got years under his belt as a retail grocery worker, even more time spent in college-level faculty development and a fair amount of freelance canoodling in web design.

When Randall’s not translating great ideas into impeccable copy, he’s got no shortage of hobbies and interests, including, but not limited to: tabletop gaming, speculative fiction, miniature painting, miscellaneous nerd culture, beer, etymology, Icelandic sagas, the intersection of secular humanism and mystical thinking, and relationships worth investing in. And cats. Lots of cats.

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Hunter Abell

Front-end developer

What’s in my bag?

“A board game to break the ice, a book with a great story, some tickets to an Atlanta United game, and an adventurous, can-do attitude.”

A hard worker with a real propensity for Google-Fu. Hunter excels at problem solving and meeting challenges head-on. He has never met a challenge he couldn’t tackle. As a Front-end developer, Hunter is in charge of building badass websites to meet all your needs. He is passionate about creating fun and memorable pages. Hunter has previously worked for Laneway Education in Sydney, Australia and graduated from Berry College with two degrees: Creative Technologies and Business Management.

Outside of work Hunter loves all things hiking, biking, ultimate frisbee, board games, bourbon, and finding new adventures wherever he goes.

Aimee Simmons

Project Manager

What’s in my bag?

“Color notecards/pens for jotting down creative solutions, sunglasses to see a new perspective, and a funny take on life.”  

As a Project Manager for Digital, she builds strategic puzzle pieces into BIG picture realities. She has 8 years of experience as a marketing project manager. With her sharp eye for detail and creative problem-solving skills, Aimee manages numerous integrated deliverables for a variety of digital marketing strategies, initiatives, and communications for our clients. She also brings extensive experience working with non-profit organizations and development teams. 

Aimee is an Atlanta native. Outside of the office, she enjoys exploring historical sites with her hubby, attending Broadway plays at the Fox Theatre, taking her shichon pup on sniff ‘n strolls, writing, and mentoring younger women. 

Hollie Rivers

Account Manager

What’s in my bag?

“Chapstick, a notebook, PILOT pens, dog treats (you never know when you’ll meet a new friend), and also a snack.”

Hardworking, clever, and a creative problem solver at heart, Hollie is known best for ultimately being of help in any way she can. With 5+ years of experience in creating and implementing effective marketing strategies and campaigns for Atlanta-based nonprofit organizations, and developing relationships, she is skilled in all facets of marketing, and always actively looking to learn more to help better serve clients. 

When not in the office, you can find Hollie hiking with her dog Kylo, storytelling at a local farmer’s market, caring for foster kittens, or grabbing a drink outside on a rooftop somewhere.

Maddie Rosenbaum

Graphic Designer

What’s in my bag?

“My bag is a black duffle, and over the weight limit. Filled with an outfit for every occasion and a planned color coded itinerary… My OCD travels with me everywhere.” 

Maddie’s role at Brown Bag Marketing is to create and produce content to be posted online, increase traffic to clients’ social media and appeal to target audiences. Creating posts, pages, and applications to attract consumers. Coworkers describe her as “the one with the color coded calendar” or “large iced coffee in hand”. After attending Mississippi State University, she moved to Atlanta to pursue her Graphic Design career.

Outside of work she usually is taking a nap, binge watching another season of Real Housewives, or cheering on her bulldogs with a cowbell in hand. 

Victoria Petrosky

Designer

What’s in my bag?

“X-acto knife, quarters for the nearest pinball machine, and chicken red curry… doesn’t matter the time of day, I will devour it.”

Victoria’s goal at Brown Bag is to unveil new and surprising design solutions through hard work and happy accidents. She is a go-getter who loves doing creative deep dives. She takes critiques and runs with them, all while being her goofy and wildly supportive self. Victoria graduated from Emerson College where she received a bachelor’s in Theater Studies. She then went on to attend the Creative Circus with a focus in Graphic Design.

When Victoria is not designing, you can catch her in North Georgia hiking or relaxing at a winery. 

Ellen Regan

Account Coordinator

What’s in my bag?

“A book, coffee at all hours of the day, and pop-culture knowledge that no one asked for.”

As a Social Media Specialist, Ellen is all things social strategy. She coordinates our organic social accounts and is always thinking of creative ways to implement forward-thinking strategies. An Auburn University graduate, she studied Public Relations and Marketing and is constantly trying to further her knowledge! 

Outside of work, Ellen enjoys trying a new restaurant (specifically Italian), watching tv shows that will probably get cancelled, or grabbing a drink with a friend.

Ally Nastasi

Digital Marketing Analyst

What’s in my bag?

“Purple pens (because why use black?), emergency candy, and a deck of playing cards.”

As a digital marketing analyst, Ally is powered by consumer research and data analytics. She uses audience insights, site analytics, and more to win new clients and support digital strategy for existing clients. Ally is a proud graduate of the Georgia Tech Scheller College of Business where she earned a B.S in Business Administration and a minor in Engineering and Technology.  If she could have a superpower, she would be mermaid who can control water and hold her breath like a fish –Think H2O meets Katara from “Avatar, the Last Air Bender!” 

Outside of work, Ally is likely watching reruns of Survivor, playing Settlers of Catan with friends, or seeking out the best ice cream places in Atlanta (or even making her own)!

Ashley Nix

Director, Social Media

What’s in my bag?

“Gratitude journal, gum, calculator to determine result rates, and my phone loaded with social apps!”  

Since the days of AOL chat rooms and MySpace, Ashley’s fascination for the sense of community built through social media drives her passion for social strategy and engagement. That said, Ashley wants to help your brand nurture and grow your social community with support of insights and analytics that informs content strategy.

Long before Brown Bag, Ashley studied Television Production at The University of Florida and is a proud Gator grad, never missing a football game. She started her career at The Weather Channel which ignited her now passion for weather (tornado chasing is on her bucket list) and social media marketing as she Tweeted weather updates throughout her shift.

When Ashley’s not on social for her clients she’s engaging with her personal followers and probably sipping on a glass of red wine with a reality show on in the background.

Dan Michaels, CEO

What’s in my bag?

“A laser focus on showing how Brown Bag Marketing can radically improve the future for our clients. And, if I’m honest, a bunch of really cool costumes that I picked up at Party City.”

Probably 50 percent of Baggers know Dan as the guy who went full Grinch for Halloween (his favorite holiday); the other half sees him in his everyday costume, Mr. Enthusiasm.

He’s here to make people’s work develop to its full potential, as fast as he can make that happen. He’s all about helping others grow. Not surprisingly, Dan doesn’t talk much about himself. He wants to talk about whomever he’s talking with. Hey, you could be next.

And if so, you should know he’ll bring unparalleled sales acumen to the conversation. Hold up: that doesn’t mean schmaltz. Turns out they don’t teach that at Emory’s Goizueta Business School, where Dan earned his MBA. Instead, whether he’s talking with a designer, a client, or a prospect, he’s always hunting for a way to take what they do and make it great. You will not find a more energetic, innovative cheerleader for your business’s success.

Put simply, the guy’s a human accelerator. Just don’t ask him to present to your Board on Halloween, unless they’re into gorilla suits.

Proudly Supports

Turning Point, a non-profit organization that improves the quality of life for women with breast cancer by providing, promoting and advocating specialized and evidence-based rehabilitation.