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Why loyalty programs need consumable content
With loyalty clubs in high demand, businesses are looking for better ways to offer rewards to consumers so that they remain not only club members but engaged club members. In the beginning, loyalty clubs used big-ticket items - frequent flyer miles, free meals, free hotel stays. The problem? Many of these incentives go unused and consumers lose interest.
The answer - and one new trend in loyalty marketing - is to offer consumers more relevant items. Rewards such as books, music downloads, software and games are making an impact with retailers and consumers alike.
According to a recent AdGenesis poll 11% of consumers joined six or more loyalty/rewards programs in 2010, and 61% joined between one and five rewards programs during the year.
"[Consumers] want more value from every dollar they spend, and when it comes to loyalty and incentive programs, they also want value and rewards they can use - immediately. the first club™ solution helps airline, hotel and retail brands build more value into their programs by offering instant and relevant rewards, through an exciting catalog of downloadable digital content to suit all tastes, cultures and lifestyles," said Jill Goldworn, President and co-founder of the first club™.
From music to games and ebooks, the club gives brands the chance to connect with consumers through content the consumer chooses - and important factor.
How big are ebooks? Barnes & Noble, one of the largest book dealers in the US, is reporting larger than expected growth for Q4 2010 and is attributing that growth to digital book sales and B&N's Nook reader. The company is reporting revenue of $1.32 billion, up from estimates of $1.28 billion reported earlier in 2010.
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