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Run a successful loyalty program in 5 easy steps

Loyalty programs can be an effective way to reward regular customers, drive repeat business and deliver great customer service. However, not all programs hit the mark.

Loyalty programs can be an effective way to reward regular customers, drive repeat business and deliver great customer service. However, not all programs hit the mark. A badly designed loyalty scheme can become a money pit for companies, bringing in more costs than benefits.

To keep your customers satisfied and make sure they come back to your store, be sure to follow our two-part series of 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

Remove all complications and frictions. Make signing up easy: ask only for key information, and give your customers the possibility to sign up through multiple channels – at your physical and online stores, as well as through your app.
Keep the process of earning points straightforward, and explain clearly how the reward system Your customers will not sign up if they can’t understand how to obtain the rewards you offer.

2. Do promote the program to your customers

People will sign up for your program only if they know about it. Spread the word, and get your staff on board: make sure that everyone who works at your store knows about the loyalty program and how it works. Ask your staff to promote the loyalty scheme at point of purchase.

To be even more effective, make it easy for customers to share the word. Include features and incentives to encourage existing users to share the program with their friends on social media. As a recent study showed, content shared online can be more influential than price and brand, and motivates consumers to shop – and spend – more.

3. Do use your customers’ data to improve the service

Use your loyalty program to collect and analyze key customer data. Tie together online and offline club members’ information to gain a complete image of your customers. Use these insights to send members relevant offers and personalized suggestions. Studies show that over 80% of customers are more loyal to retailers who have been sending personalized offers.

Don’t let privacy concerns stop you: according to a recent study, 3 out of 4 loyalty club members are ok with having their shopping behavior monitored in exchange for personalized deals and offers.

4. Do reward your customers across the channels

Gone are the days of old-fashioned punch cards. Consumers look for seamless brand experience, and your loyalty program is no exception. Use the program to create a community for customers across touch points. Make loyalty and rewards information available in different formats – for example push notifications, SMS, emails, or through your loyalty app – depending on your customers’ preferences. Let users retrieve their rewards across different channels, for instance allowing vouchers to be redeemed on your app and online portal as well as in-store.

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.

From the original “Run a successful loyalty program in 5 easy steps” ↗