By Elizabeth Boineau
Contributing Writer

Most of us are inclined to seek character, integrity and loyalty in both personal and professional relationships, in part because we hope they’ll be long term and bring many benefits in the years ahead.

We certainly hope the personal relationships we put stock into will provide lasting satisfaction and reward.

On the business front, the price of loyalty is difficult to quantify in today’s marketing arena full of competitors offering perks and pluses, such as discounts, free shipping and gifts, in return for your business and for demonstrating your loyalty through repeat visits and/or purchases.

It has been said we all can be “bought,” and increasingly, these so-called loyalty or “affinity” programs aim to do just that.

 Typical programs include the combo of Gap, Banana Republic and Old Navy, where purchases with any one of those cards at any of the three stores combine for points that lead to discount cards/certificates for future purchases.

Talbot’s offers the same basic program, and both outfits also have clever rewards for additional savings during your birth month.

One early loyalty program trendsetter aimed at building same-store sales was Chico’s. The women’s retail store started its program in 1991 with Passport, which entitles anyone who spends more than $500 at one of its stores to a lifetime discount of 5% off all future purchases at that store, in addition to free alterations, shipping and invitations to special events and sales.

Chico’s says that 70% of its regular customers are Passport members and tend to spend twice as much per visit and shop more often than non-members.

 Some programs, such as Best Buy and numerous credit cards, charge an annual fee in return for bonus points and discounts on purchases. Best Buy, in return, offers its customers select, private sales and advance notice of other promotions, as well as goodies like a free holiday CD.

Amazon.com has a program that combines with Visa to give users $25 discounts through points earned off an Amazon Visa card that carries no interest for six months.

 In the online arena, an August 2005 Jupiter Research study shows that 24% of U.S. online retailers now have loyalty programs, and another 43% will have them within 12 months, which means more than two-thirds of these retailers will soon offer their customers various bonuses for their business.

 Overall, the Jupiter study concluded that, in spite of a frenzy in rewards programs, there is a lot of sameness among the programs, and they don’t typically do a good job of differentiating the brand.

Moreover, it is hard to demonstrate whether the return on investment is significant.

Those businesses who aim to offer more unique, well-branded programs are using them to aid the crossover of in-store and on-line shopping, which is where they appear to be going to pay off in the future, according to analysts from Jupiter Research.

 The survey further notes that retailers who can track gross margins by customer and assess the lifelong value of that customer through the use of surveys and tracking e-mails are more likely to see a return on investment with these programs.

 When a portfolio of company brands come together, as in the Gap et. al. retailers above, or in the example of travel giant Carlson Hospitality Group, these umbrella loyalty programs can create efficiencies for the company and more opportunities for the buyer.

Rather than slowly building points at Radisson, Park Plaza, Park Inn or Country Inn & Suites, all Carlson properties, with their new Goldpoints Plus program, give points for any of the properties in the family, yielding more rewards and more returns for all parties.

 The other major benefit of these programs is how much more information the retailer learns about its customers. The more the company can track spending habits and offer products and services that fill a customer’s need, the more loyalty builds, with or without the points.

Since the retail trade purports that 20% of customers represent 80% of sales, you should gather a “rich profile” and get to know your favorite, loyal and best customers intimately and turn that knowledge into power with marketing strategies that more precisely target and cater to your best customers’ every whim.

Now what could be more rewarding than that?

Elizabeth L. Boineau runs E. Boineau & Co., a Charleston-based strategic marketing communications and public relations firm. E-mail her at eboineau@eboineauandco.com.

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