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Home Business

Should Your Business Center Run a Loyalty Program

byMike Sullivan
August 12, 2011
in Business, Marketing
Reading Time: 2 mins read
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There are many ways to incentivize customers in the business center world, from free trials to discounted rent to bonus services. But you may want to consider an emerging trend in the serviced office space industry: loyalty programs.

Doubtless, you are familiar with loyalty programs. Loyalty programs are part and parcel of the travel industry. (Think frequent flier miles and hotel rewards.) The credit card industry also taps into the loyalty program mindset with cash back on purchases, or, again, point systems that let you earn rewards. Even grocery stories have loyalty programs.

The goal of these marketing programs are, of course, to encourage customers to buy your products and services again and again. But what does this look like in the business center world? Although it may take on many different faces, Servcorp is rolling out a loyalty program that should give business centers something to think about.

Advertise on Allwork.Space 2023

The Servcorp Loyalty Program is designed to reward customers of the Bangkok Virtual Office, and the Virtual Office Thailand packages. As Servcorp describes it, joining its loyalty program can help companies maximize profits and minimize costs. Instead of paying for Servcorp virtual office services during slow business seasons, for example, loyalty program participants could apply the rewards points they earn to stretch their budget.

Here’s how it works: Companies have to earn eligibility for the loyalty program. (Servcorp did not indicate how companies can become eligible.) After entering the loyalty program, companies receive rebate points at the end of every month they use virtual offices. The rebate points are equal to 20 percent of the cost of the virtual office. The rebate points earned are visible on the tenant’s monthly statement. Companies don’t have to use the rebate points for free virtual office space. The points can be used to increase service packages, including transitioning into serviced office space.

As you craft your own loyalty program, consider revealing research from the CMO Council. When asked to outline typical customer complaints about loyalty programs, nearly 30 percent of marketers report that some customers see little or no added value to becoming a loyalty member.

Another 24 percent indicate rewards lack substance, and similar percentage feel they don’t get enough personalized attention. Twenty-one percent have problems with receiving too much spam e-mail and junk mail. Customer complaints also touch on a lack of individualized communication (23 percent) and issues with redeeming points and miles (18 percent).

The lessons: Find out ahead of time what your tenants want and craft your program accordingly, be sensitive to their communications styles, and be sure to deliver on the loyalty promise. Making tenants jump through hoops to redeem rewards could send them looking for another business center.

Tags: Marketing
Mike Sullivan

Mike Sullivan

Mike Sullivan is an entrepreneur and marketing professional who tries to keep things humming along as best as possible. From time to time, he updates Officing Today, but mostly he can be found on Skype talking with someone about virtual offices.

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