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MDG Advertising – Branding / Marketing / Lead Generation

Franchises Turn To Loyalty Programs To Boost Business

Loyalty programs are growing in popularity as major consumer brands struggle through a sluggish recovery. Direct Marketing News reports that brands are implementing loyalty initiatives in an effort to meet consumer expectations, ease corporate pressure for ROI, and strengthen their overall customer base.

Dunkin’ Donuts is one of the brands using loyalty programs to meet customer expectations. The doughnut franchise recently launched its first loyalty program which gives members one ‘Dunkin Dollar’ for every $20 spent.

Travel and hospitality brands are dealing with the stagnant economy by focusing on loyalty efforts to solidify their customer bases. Over the last few months, brands such as Virgin America, Intercontinental Hotels Group and Southwest Airlines have introduced or re-launched loyalty programs.

"The recent economic crisis created more interest in these programs for marketers," said Luca Paderni, VP and principal analyst at Forrester Research. "A few companies that weathered the crisis said it was due to retaining customers through existing loyalty programs."

Companies know that loyal customers provide a steady revenue stream and strong word of mouth. They also realize that loyal customers want to be appreciated. Through loyalty programs, brands are able to show these customers how much they are valued by giving them greater value within their brand experience.

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MDG Advertising is a full-service South Florida advertising agency, with offices in Florida and New York, that specializes in developing targeted franchise marketing solutions, exceptional online executions, and solid branding and media buying strategies that give franchises a real competitive advantage. MDG Advertising handles creative, media, and interactive marketing for Coverall, one of the world’s leading commercial-cleaning franchising companies, with a global network of more than 90 support centers and 9,000 franchisees.

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