July 30, 2008 | Debbi A. Ballard | Comments 0
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MLM Loyalty Marketing Tips

by Debbi A. Ballard, MLM Consultant, copyright, 2008, Debbi A. Ballard

MLM loyalty marketing can help you succeed in today’s competitive environment. These days both customers and MLM networkers can be extremely fickle. Hence, the loyalty factor plays a key role in the success of any MLM company .

Securing customers and independent MLM network marketers mean little if they are not retained. Integrating MLM loyalty programs into your overall marketing efforts can make a noteworthy difference in your retention rate.

Incorporating MLM loyalty marketing programs for your customers and/or independent reps can look like a daunting task if you have never done so before. Michael Greenberg, who is vice-president of marketing for Loyalty Lab out of San Francisco, offers many excellent tips in articles he has had published online. (Loyalty Lab helps companies to develop successful loyalty programs.) In this article you will find some thoughts shared by Greenberg and myself on this topic.

If faced with similar product offerings, customers have an incentive to keep purchasing from a company that has a rewards program versus one that does not. This is a critical element of any reward program and important to remember in our highly competitive MLM industry .

Reward programs can incentivize not just direct purchasing behavior but other behavior activities. For example, Greenberg writes about giving rewards for customers who set up gift reminder settings. The idea is that for those who do, sales can escalate as those people will choose to order gifts from your product line.

Also, a rewards program can be useful for empowering many other corporate strategies. One illustration is that if you are conducting an online survey among your customers and/or reps, you can tie in rewards for completing the survey and realize higher returns.

Greenberg states that reward programs greatly increase the number of email messages read. If you have periodic updates on what rewards a person achieved, this entices them to open and read your emails. If you are good about continually adding new and exciting rewards, this, too encourages them to read your emails.

As an MLM consultant , I appreciate how MLM loyalty marketing programs can make an MLM company’s products and opportunity more attractive. I suggest considering tying new product introductions to receiving loyalty rewards. This could be tied to both customers and reps and can help launch new products with far greater sales. In addition, tying rewards to consistent buying by customers or to consistent sales made by reps can obviously increase sales volume. Reps can be rewarded for a variety of other activities like attending various training sessions and/or conventions, consistently providing excellent customer service, etc.

Just like most MLM compensation plans have breakage in their payouts due to unearned income, so, too do loyalty reward programs. People have earned loyalty rewards that they do not redeem. People fail to reach certain purchasing earmarks to redeem various rewards. Hence, Greenberg reports that the overall average reward promoted on a 5% reward program is really around 1.5%-2%.

There are many opportunities to exploit with a quality, well-designed loyalty reward program. Whether you are a corporate manager or an independent MLM network marketer with a growing customer/rep base, you can take advantage of the numerous established loyalty marketing programs available or just create your own MLM loyalty marketing program. Good luck!

"Empowering the Lonely Loyalty Champion," by Michael Greenberg

"Five Things You Need to Know About Loyalty Marketing," by Michael Greenberg

This article is from the MLM blog at .

(The above article can be published offline and in your newsletters sent via email as long as it is published in its entirety with all copyright notices and reference information.)

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Filed Under: MLM ArticlesMLM Compensation PlansMLM LoyaltyMLM Marketing


About the Author: MLM Consultant, Expert Witness, Author, Blogger, Speaker and CEO of International Network Liaison Corporation...but more importantly, wife, mother, daughter, aunt, cousin and friend.

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