Loyalty Programs Help You Raise Funds With Everyday Purchases

You can turn your everyday purchases into fundraising profits by taking advantage of loyalty programs offered by different retailers and fundraising companies.

Loyalty Programs—The Basics

Most people are familiar with loyalty programs; they are common among major retailers, manufacturers, and grocery stores. In the U.S., CVS, Target and Kroger's are two recognized stores that offer customer loyalty programs.

The most common form loyalty programs take are bonus savings or reward point accumulation. Loyal customers can apply for a customer or courtesy card of some kind (often resembling a credit card) which has a magnetic strip or bar code to identify the customer. Each time a customer makes a purchase, their associated reward is recorded in a computerized database. When enough points have accumulated, the customer is eligible for the reward. Rewards may come in the form of discounts on purchases, cash back, or free product.

Why Companies Offer Loyalty Programs

Companies benefit by offering loyalty programs because they build their customer base and encourage regular and continuous patronage. Customers appreciate that they are appreciated, and will choose the rewarding company over a competitor in an effort to build up their points and earn the reward. For successful loyalty programs, the loss is negated with increased sales, positive word of mouth, and expanded customer base.

In the case of loyalty program partnerships, companies benefit in much the same way. Rather than make a payout to the purchaser, though, the company agrees to pay a portion of sales to the fundraising group of the purchaser's choice. The store or retailer gets the consumer's business because they are helping support their favorite organization just by buying their normally needed purchases from the designated store.

Loyalty Program Partnerships For Fundraising

Fundraising loyalty program partnerships are varied. The most common arrangement is for a group, such as a school group, to partner with an area retailer. Customers usually need to register with the store and designate the group that they want their funds to go to. Then every time a qualifying purchase is made, the group gets the associated bonus rewards.

Loyalty programs can take other forms, too. For instance, discount card fundraisers could be considered loyalty programs of a sort, as could coupon books and sales events where a percentage of sales go to the promoted group.

Benefits Of Fundraising With Loyalty Programs

Loyalty programs benefit fundraising groups because they are virtually cost-free. A simple registration process is all that is needed to set the program up. Other than that, all the group needs to do is get the word out so customers can designate the group as recipient and so that customers know to shop supporting retailers.

From the supporter's perspective, there is the advantage of raising funds without spending on excess product; the idea behind loyalty programs is that money can be made with purchases that people need to make anyway, and with the resources of many pooled together, the profits can add up effortlessly.

This is an article created by the FundraisingIP.com Editorial Team. For more fundraising ideas and fundraiser help, go to our article directory at FundraisingIP.com/articles.

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