Read on TwitterToday, more businesses are coming up with loyalty programs to & #39;retain & reward& #39; loyal customers.
If you think these were the doings of technological advancement in the past 2 decades, here is a thread on the history & evolution of loyalty programs -
#loyaltyrewards
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The origin of loyalty program can be traced by to 1793 when a merchant in New Hampshire started distributing copper tokens redeemable for future purchases.
The idea caught on and merchants started using this technique to identify and nurture their returning customers.
The origin of loyalty program can be traced by to 1793 when a merchant in New Hampshire started distributing copper tokens redeemable for future purchases.
The idea caught on and merchants started using this technique to identify and nurture their returning customers.
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But, copper coins were expensive, retailers started transitioning to less expensive ways like certificates & tickets.
A business named & #39;Sweet Home Laundry& #39; used the invention of color lithography to their advantage by distributing certificates redeemable for color lithographs
But, copper coins were expensive, retailers started transitioning to less expensive ways like certificates & tickets.
A business named & #39;Sweet Home Laundry& #39; used the invention of color lithography to their advantage by distributing certificates redeemable for color lithographs
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In 1872, Grand Union Tea company gave away tickets with purchase which could later be exchanged for merchandise from their store catalogs.
In 1886, the Larkin soap Company also distributed certificates with soaps that could be redeemed for soaps from the company& #39;s catalog
In 1872, Grand Union Tea company gave away tickets with purchase which could later be exchanged for merchandise from their store catalogs.
In 1886, the Larkin soap Company also distributed certificates with soaps that could be redeemed for soaps from the company& #39;s catalog
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Then came "Trading Stamps - small pieces of glue-backed colored paper distributed in proportion to purchases made.
When customers had a certain amount of booklets filled with these trading stamps, they could redeem it for products from the company& #39;s catalog.
#loyaltyrewards
Then came "Trading Stamps - small pieces of glue-backed colored paper distributed in proportion to purchases made.
When customers had a certain amount of booklets filled with these trading stamps, they could redeem it for products from the company& #39;s catalog.
#loyaltyrewards
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Schuster& #39;s - a departmental store in Milwaukee, Wisconsin was the first to give trading stamps to customers in 1891.
In 1896, Sperry & Hutchinson Company launched "S & H Green stamps" for supermarkets & gas stations making them the 1st 3rd-party loyalty provider.
Schuster& #39;s - a departmental store in Milwaukee, Wisconsin was the first to give trading stamps to customers in 1891.
In 1896, Sperry & Hutchinson Company launched "S & H Green stamps" for supermarkets & gas stations making them the 1st 3rd-party loyalty provider.
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S&H started providing booklets for customers to paste their “green stamps” & redeem them for household products, kitchen items etc at a redemption center Kiosk launched in 1897.
The S&H Green stamps can arguably be called as "America& #39;s first frequent shopper program"
S&H started providing booklets for customers to paste their “green stamps” & redeem them for household products, kitchen items etc at a redemption center Kiosk launched in 1897.
The S&H Green stamps can arguably be called as "America& #39;s first frequent shopper program"
7/
In 1929, Betty Crocker, a General Mills company started inserting redeemable coupons in bags of flour which they later (1937) started printing on the outside of boxes giving birth to the term "BoxTops".
This program ran for 75+ years before its termination in 2006.
In 1929, Betty Crocker, a General Mills company started inserting redeemable coupons in bags of flour which they later (1937) started printing on the outside of boxes giving birth to the term "BoxTops".
This program ran for 75+ years before its termination in 2006.
8/
In 1981, just a week apart from each other, American Airlines & United Airlines launched their loyalty programs "Frequent Flyers" & "Mileage Plus" respectively.
Flyers could accumulate miles & spend them for special privileges like - discounted fares, coach upgrades etc.
In 1981, just a week apart from each other, American Airlines & United Airlines launched their loyalty programs "Frequent Flyers" & "Mileage Plus" respectively.
Flyers could accumulate miles & spend them for special privileges like - discounted fares, coach upgrades etc.
9/
Over the coming years, loyalty programs continued to evolve beyond airlines into different verticals.
The 90& #39;s saw a rise of card based loyalty programs when Tesco (a U.K based supermarket) used technology to track consumer behavior.
Over the coming years, loyalty programs continued to evolve beyond airlines into different verticals.
The 90& #39;s saw a rise of card based loyalty programs when Tesco (a U.K based supermarket) used technology to track consumer behavior.
10/
The early part of 2010 was when loyalty programs backed by technology gained prominence.
With technology to their aid, retailers could now create loyalty program tailored to their business needs. POS integration, rewards based previous purchase history became commonplace.
The early part of 2010 was when loyalty programs backed by technology gained prominence.
With technology to their aid, retailers could now create loyalty program tailored to their business needs. POS integration, rewards based previous purchase history became commonplace.
11/
The last decade saw the rise of e-commerce & a plethora of services providing turnkey solutions to set up loyalty programs & retention marketing.
With mobile disrupting the tech & communication landscape, many big players launched loyalty apps making loyalty cards obsolete
The last decade saw the rise of e-commerce & a plethora of services providing turnkey solutions to set up loyalty programs & retention marketing.
With mobile disrupting the tech & communication landscape, many big players launched loyalty apps making loyalty cards obsolete
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~60% of shoppers treat mobile as a part of their shopping experience making it important for loyalty programs to be available on mobile - both web & in-app.
3rd-party loyalty providers have also started ensuring that they are able to integrate with retailer& #39;s existing app.
~60% of shoppers treat mobile as a part of their shopping experience making it important for loyalty programs to be available on mobile - both web & in-app.
3rd-party loyalty providers have also started ensuring that they are able to integrate with retailer& #39;s existing app.
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The current landscape is being transformed by omni-channel loyalty programs that encourage earn & burn across multiple channels.
Personalization using location data, purchase history, seasonality, sending relevant communication form the crux of today& #39;s loyalty programs.
The current landscape is being transformed by omni-channel loyalty programs that encourage earn & burn across multiple channels.
Personalization using location data, purchase history, seasonality, sending relevant communication form the crux of today& #39;s loyalty programs.
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In the future, loyalty programs will become more dynamic and robust with the help of data & A.I
More relevancy of rewards & communication, multiple ways to earn & burn will provide users an empowering experience in turn helping businesses understand users in a better way.
In the future, loyalty programs will become more dynamic and robust with the help of data & A.I
More relevancy of rewards & communication, multiple ways to earn & burn will provide users an empowering experience in turn helping businesses understand users in a better way.
If you liked this thread, here are a couple of articles that talk about the evolution of loyalty programs in detail
1. https://www.futureofbusinessandtech.com/loyalty-and-rewards/the-history-and-future-of-loyalty-programs/
2.">https://www.futureofbusinessandtech.com/loyalty-a... https://www.loyaltymarketing.com/simpliblog/the-evolution-of-loyalty-programs]">https://www.loyaltymarketing.com/simpliblo...
1. https://www.futureofbusinessandtech.com/loyalty-and-rewards/the-history-and-future-of-loyalty-programs/
2.">https://www.futureofbusinessandtech.com/loyalty-a... https://www.loyaltymarketing.com/simpliblog/the-evolution-of-loyalty-programs]">https://www.loyaltymarketing.com/simpliblo...
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