Visual Marketing: 99 Proven Ways for Small Businesses to Market with Images and Design

89. High-End Rewards: Offering Upscale Coupons Grows Loyalty, Prevents Cancellations, and Sells Add-Ons

Groucho Marx never wanted to be a member of a club that would have him as a member. There are lots of reasons to avoid joining a club, so Manchester Athletic Club in Cambridge, Massachusetts, set out to attract new members and keep them with a welcome packet of coupons worth $270 in services.

Why It Works

The MAC Rewards Program provides a packet of coupons delivered in a handsome cardboard carrying case designed by Brian Conway. These are not your mother's supermarket coupons. They look more like award certificates, complete with ornate border designs in an upscale carrying case that brings a certain level of caché. The case encourages you to hang onto the coupons and use them over a period of months, instead of tossing them aside. Jay Herson, MAC's marketing director, says the investment in design has paid off by highlighting the value of the offers. These are high-end offers, not cheap discounts or leftovers. The research shows that the more members participate, the more invested they become in the club. The coupon packet increases membership loyalty and reduces cancellations.

Success Metrics

• Record numbers of new memberships were sold while the promotion ran, and overall membership revenues have increased by $100,000 for the two years the program has been running.
• The program ...