Loyalty Programs thrive in challenging economic times.

In challenging economic times, individuals are flocking to customer loyalty programs as consumers increasingly value benefits and amenities. Loyalty programs, in which repeat customers are rewarded with products, services or discounts, have been injected with new life with the proliferation of improved data-mining marketing technology. Today, according to COLLOQUY, a loyalty marketing consulting firm, the average US household is enrolled in 12 loyalty programs.

“In a downturn, companies need to get closer to their customers – and show their appreciation – as competition for every dollar heats up. The companies that prosper in tough times remain active, data-driven marketers — and these firms are respectful of their customers, nimble and strategic, and true to their brands,” said Bryan Kennedy, COO and President of Epsilon Marketing Technology.

An example is the Hilton HHonors Loyalty Program, which is poised to pass the 25 million member milestone next month. As one of the largest customer reward programs in the industry, Hilton HHonors is constantly looking for ways to provide its members with a highly rewarding and comprehensive loyalty program.

By collaborating with Epsilon, and using its real-time interface, SONAR, Hilton HHonors has developed highly customized communications. These communications provide members with information about new earning and redemption opportunities that are most relevant to them, based on their preferences, behavior and buying patterns. The SONAR platform accomplishes this by providing a higher degree of targeted and personalized content delivery in real-time messages.

“When you are working with savvy travelers, you need to constantly be looking for creative ways to expand your relationship with them,” said Adam Burke, Senior Vice President, Customer Loyalty, Hilton Hotels Corporation. “The Hilton HHonors program is committed to providing travelers with a rewarding experience whether they are redeeming their points for free nights with no black-out dates, one-of-a-kind experiences such as sky diving, or even merchandise.”

As a result of the Hilton HHonors program, HHonors stays have increased by almost 200% since 2000.

In addition, banks and credit card companies invest in their best clients in down markets with the hope that the relationship will expand when markets and the economy improve. One major banking loyalty program has more than 12 million active members and is growing at 15% a year.

“More and more, customers are demanding recognition and rewards in return for their loyalty. Now – more than ever – loyalty innovators must be creative in the rewards value proposition they offer customers. And, it is imperative that they execute them flawlessly,” said Kelly Hlavinka, Managing Partner at COLLOQUY.

For more information at http://www.epsilon.com