Create a rewards program that really works
Loyalty programs have been topping client retention initiatives for years, but how many of them are actually convincing clients to commit?
Recent research from Bond Brand Loyalty, analysed by eMarketer, found that while US internet users belonged to around 11 loyalty programs on average, they only actively participated in 50 percent of them.
With so many rewards initiatives failing to persuade buyers to stick with a brand, even when they've already taken the plunge and signed on, it's clear that for your loyalty program to work, you need to offer something compelling.
Simple and enticing
Encouraging clients to sign up is the first step of any program and the best way to do it is to make the process as simple as possible. Let people join whichever way suits them best by offering sign-ups in store and through social sites as well as email entry.
You also need a rewards system so easy to understand that people can grasp it in a matter of seconds. Does every dollar spent equal a point? Every $10? Are rewards tied to specific purchases? The benefits should be crystal clear.
Pain-free participation and rollicking rewards
Help clients stay active by making participation something they don't have to worry about. Allow them to accrue points seamlessly whenever they spend online or in store. All they should have to do is pay via their login, card or app and watch their rewards accumulate.
And those rewards need to be something worth having. A first look at future deals isn't enough, you need to offer participants exclusive offers and real discounts they can't get without signing up.
If you want clients to continue interacting with your program in the long-term, create rewards that get better the more active they are, and let them see the progress they're making.
Latest tech and savvy data use
For a loyalty program to really shine, you also need to think about leveraging the latest technology and customer relationship management systems to make use of the data you're collecting. By looking at the way your loyal customers interact with your business – from abandoned shopping carts to picking up on specific special deals – you can mould your strategy to meet their needs.
Aim to understand and then solve the kind of customer and industry pain points that are a barrier to business and use them to not only improve service company wide, but also to bolster your loyalty program – by offering rewards that go beyond discounts and straight to the heart of what your clients want.
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