A loyalty and rewards program offers the possibility to solidify existing relationships, initiate new ones and convert your one-time visitors, consumers and prospects into repeat business and long-time contributors. Implementing a successful customer loyalty solutions is all in the process.
Nearly 60% of worldwide purchasers stated that loyalty programs were available where they shopped, and of those, a whopping 84% stated they have been more likely to visit these ones again.
Here are five steps you need to take as a way to build an effective loyalty program, and why they’re so essential to your achievement.
1. Target your most loyal customers
Analysing statistics collected through loyalty and gift card programs can help.
In reality, the blended facts flowing from POS, e-Commerce systems and loyalty companies carries treasure troves of client insights — revelations which could help stores to increase basket size, form advertising campaigns and perceive their most treasured loyalty members based on spending habits and preferences.
2. Segregate based on patterns
Determining a customer’s value need to never be a guessing game. Fortunately, data collected by loyalty program company can offer an exclusive insight into customer segments and the way to strategically allocate advertising money to every group.
It’s certainly one of big data’s most vital uses as evidenced by a recent Maritz Loyalty Report. The paper reveals that 94% of loyalty members opt to receive communications from their programs, yet only 53% describe the communications they acquire as relevant.
3. Establish program goals
Once a retailer has created customer segments, the subsequent step is to choose a couple of retention metrics to target with this system. Imagine being capable of delivering personalised reductions based on repeat purchase rate, common order value and purchase frequency.
Once you’ve picked your metrics, measure them to set up a baseline and in the future to test if this system is going on the right course.
4. Determine program structure
If you are honestly executing a custom method to loyalty marketing, imparting the right rewards will usually come naturally.
5. It must be obtainable.
Getting it right means that rewards have to be both unique to the brand experience and tailored to the purchase behaviour.
Random on the spot rewards drive pleasure, interest and momentum in the program and remember the fact that monetary-based rewards like gift cards are each highly-priced and common.
Reward with creative intent to provide a touch point with the intention to differentiate your brands in the minds of the customers.
You’ll be surprised on the goodwill this could engender
Promote
Establishing a loyalty and rewards program permits you to proactively communicate with your existing members, prospects or members instead of passively waiting for them to return to your website or stop by a shop to buy your product.
Talk to your clients and confirm whether your loyalty program is hitting its mark or not.
Don’t be afraid to experiment and continuously evolve to hold a unique place that caters to your consumer base. Your customers and bottom line will appreciate it.
Once you’re off and running, the sky’s the limit with loyalty.
