CINCINNATI (July 19, 2010) — In its most recent issue, COLLOQUY magazine, the voice of loyalty marketing since 1990, poses the question of the “carrot” and the “stick”: Should health care use a positive approach that offers incentives to encourage pro-health behavior, or punish consumers for bad health habits?

“With the Patient Protection and Affordable Care Act, there is a new support of the use of incentives and rewards by health and wellness programs. Starting in 2011, the law authorized grants totaling $200 million over five years for small companies that start wellness programs. We see that loyalty marketing tactics are becoming an important tool in the health care reform,” said COLLOQUY Managing Partner Kelly Hlavinka. 

Some tried-and-true loyalty tactics that COLLOQUY says will soon be driving the health care “carrot” renaissance:

    1. Short-term incentives can mean long-term payoffs
    2. Understand your objectives if you want to offer the right benefits
    3. Communicate. Communicate. Then, communicate some more
    4. Strike a balance between hard and soft benefits
    5. Stay relevant if you want consumers to stay motivated
    6. Raise the bar.

The principles and best practices of loyalty marketing have helped companies across industries drive behavior shifts toward a wide variety of goals, from customer acquisition and retention to increased sales and data gathering. “The health care industry is no exception,” said Hlavinka. “Companies are using loyalty tactics to help reduce health care costs, prevent chronic disease, and encourage healthy behavior change.”

COLLOQUY magazine, published by LoyaltyOne, explores critical best practices, innovations, trends, opinion and strategies in relationship,  dialogue and database marketing. Coverage in the latest edition also includes:

Cover Story: The Wellness Prescription
After years of wielding only the “stick” (fear, uncertainty and punishing fees) to drive healthier behavior, the nation is waking up to the effectiveness of offering the “carrot” to motivate consumers. Stick tactics didn’t deliver enough immediate “what’s in it for me” to make a noticeable impact. Add the health care bill, mix in the wisdom of loyalty marketers, and suddenly the metaphor of an apple a day resurfaces.

Anniversary Report: 20th Anniversary Retrospective — Loyalty Truisms and Falseisms
Sometimes it can take years for a good idea to become a best practice,  and even more years before it is recognized as such. Other good ideas quickly prove themselves to be not-so-good practices. Re-explore eight truisms that deserve crystal clarity.

The Practitioner’s Perspective: Bursting Bubbles — Discovering New Worlds of Loyalty
Loyalty marketing is entering a new generation of “engagement strategies” that reward customers for a myriad of word-of-mouth activities, healthy behaviors, ecologically-responsible activities, and much more. Is this new generation of rewards and incentives for non-purchase behavior here to stay?

Strategy Report: Bridge to Value — Finance and Marketing Can Build Common Bridges
While they don’t always take the same approach to reaching common goals,  Finance and Marketing must work well together for any loyalty effort to take off. Read how two often-opposite teams can collaborate to build a bridge toward program value for the greater loyalty good.

Retail Report: Stepping Out — The Loyalty Steps of Designer Shoe Warehouse
The revamped DSW Rewards program has increased its use of segmentation models, developed robust offerings with multiple tiers and special benefits for select customers and invested significant time and effort in the social media space. Discover how DSW’s data-driven loyalty efforts take footwear fanatics to new heel heights.

COLLOQUY comprises a collection of publishing, education and research resources devoted to the global loyalty-marketing industry. Owned by LoyaltyOne, COLLOQUY has served the loyalty-marketing industry since 1990 with over 30,000 global subscribers to its magazine and the most comprehensive loyalty web site in the world.  COLLOQUY’s research division develops research studies and white papers including industry-specific reports, sizing studies and insights into the drivers of consumer behavior. COLLOQUY also provides educational services through workshops, webinars and speeches at events throughout the world and is the official loyalty-marketing partner of both the Direct Marketing Association and the Canadian Marketing Association and a content provider to the American Marketing Association. COLLOQUY also operates the COLLOQUY Network, a global consortium of practitioners certified in COLLOQUY’s proprietary methodology.  COLLOQUY magazine subscriptions are available at no cost to qualified persons at or by calling 513.248.9184.

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