Rewarding loyal customers and encouraging repeat business is crucial for any company. Loyalty programs can be an effective tool to achieve this, but not all plans are successful. A poorly designed strategy can end up costing more than it benefits. To ensure customer satisfaction and loyalty, it is important to follow our two-part series on the do's and don'ts of running a loyalty program.
This week we bring you the 5 do’s of successful loyalty schemes:
1. Do keep it simple
Simplify the signup process by removing any complications or obstacles. Ask customers for only essential information and provide them with multiple options to sign up, whether it's in-store, online, or through your app. Ensure that earning points is straightforward and clearly explain how the reward system works. If customers can't understand how to obtain the rewards you offer, they will be less likely to sign up.
2. Do promote the program to your customers
Spread the news about your loyalty program far and wide to ensure people sign up. Engage your staff and make sure they are well-informed about the program and its benefits. Encourage them to promote the loyalty scheme at the point of purchase. To maximize effectiveness, make it effortless for customers to share the program with their friends on social media. Recent studies have shown that shared content online holds more sway than price or brand, and has the power to inspire consumers to shop more and spend more.
3. Do use your customers’ data to improve the service
Harness the power of your loyalty program to gather and analyze invaluable customer data. By connecting the dots between your online and offline club members, you can gain a comprehensive understanding of your customers. Utilize these valuable insights to deliver tailored offers and personalized recommendations that will keep your customers coming back for more. Research demonstrates that a staggering 80% of shoppers exhibit greater loyalty to retailers who provide personalized offers. Don't let concerns about privacy deter you, as a recent study reveals that 75% of loyalty club members are comfortable with having their purchasing behavior monitored in exchange for exclusive, personalized deals and offers.
4. Do reward your customers across the channels
Say goodbye to the days of old-fashioned punch cards. Today's consumers are seeking a seamless brand experience, and your loyalty program should be no exception. Utilize your program to not only reward customers, but also to create a thriving community across various touch points. Make sure that loyalty and rewards information is easily accessible in a variety of formats, such as push notifications, SMS messages, emails, or through your loyalty app. Tailor these options to cater to your customers' preferences. Additionally, allow users to redeem their rewards across different channels, whether it's through your app, online portal, or in-store. By offering this level of flexibility, you can ensure that your loyalty program provides a truly cohesive and rewarding experience for your valued customers.
5. Do measure your success
What do you want to achieve with your loyalty program? Do you want to increase basket size, get more repeat visits, gain new customers? Identify your goals by establishing key performance indicators (KPIs), and track your progress. Make sure that your loyalty scheme is designed in a way that helps you achieve your goals. Before you start building your successful loyalty program, make sure to read also the second blog in this series about what NOT to do when building your loyalty campaign.
