A study by mobile marketing company CodeBroker reveals that three-quarters of respondents said that they would like to engage with loyalty programs using their smartphones. This stat shows why digital loyalty programs are the need of the hour.
As the name suggests, digital loyalty programs are the digital version of traditional loyalty programs. By using digital loyalty programs, businesses can enable customers to sign up for the programs easily, keep track of their points and rewards, and redeem those conveniently.
This blog post details four effective steps to implement a successful digital loyalty program. If are curious to know how you can implement effective digital reward programs, read on and thank us later.
1. Select the right loyalty platform
When it comes to creating successful and effective digital rewards, it is crucial to choose the right loyalty platform and join hands with a reliable and reputable loyalty solution provider. The right platform will not only help you craft engaging digital rewards but will also monitor your sales as well as your loyalty program’s performance.
Before choosing a loyalty platform, make sure it’s easy to use. A user-friendly platform will help your customers navigate through the app and efficiently collect loyalty points. After making sure the app works well, check how easy it is to install and customize. Is setting up the app easy and fast? And does the app provide sophisticated features and robust technical support? After considering all the key factors, check out the price. Quality platform indeed comes at a price but many affordable options in the market provide all top-class features for the best price.
2. Choose a system to provide the loyalty rewards
A loyalty system is a brand’s form of currency through which customers can collect loyalty points and redeem those. Selecting the right customer loyalty system can help you provide loyalty rewards efficiently and effectively.
You can choose a product-based loyalty system if you want a simple and flexible loyalty rewards system to set up on your digital platform. It is also the fastest and easiest system compared to all other loyalty systems. You may consider a points-based system, which is the most common reward system used by a majority of brands. If you intend to increase the footfalls in your store and encourage customers to view more of your products and services, you can consider using a visits-based loyalty system. Last but not the least; you can try a cashback-based loyalty system if you want to increase your customers’ cash spending.
3. Handpick your loyalty rewards
Based on the loyalty system, you can choose multiple loyalty rewards. The loyalty rewards can be a mix of monetary rewards and non-monetary ones. Striking the right balance between financial and experience-based rewards is the key to a successful digital loyalty program. Before selecting the right digital rewards, ask the following questions:
- Who are my customers?
- What rewards do they value the most?
- What rewards can fulfill their needs and wants?
- Can customers avail of the rewards easily?
- How many transactions do customers need to make before they get a reward?
- How much discount can you provide?
After getting satisfactory answers to the above questions, choose a bouquet of rewards to provide options as well as for better customization.
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4. Promote your digital rewards program
The last but most important step is to promote digital reward programs. No matter how exceptional your loyalty platform is and how great your loyalty system and rewards are, if you don’t promote your programs then it’s just a sheer waste of time, money, and effort.
Social media gives you the freedom and the power to reach a large group of people with just a click of a button in almost no time. Using social media, you can create attractive and engaging posts on your digital rewards program. It is the easiest and fastest way to attract the attention of existing customers, followers, as well as new prospects.
Another reliable way to promote your digital reward programs is to send text messages and emails to your existing customers. If you don’t have the phone numbers and email ids of your customers, you can request the same. Provide a signup reward to motivate customers to join the program. You also can consider promoting your digital loyalty program on Google Ads. You may advertise your digital loyalty program on flyers or in your local newspaper.
Taking everything into consideration
As customers become more tech-savvy with each passing day, digital loyalty programs are extremely crucial in the present age. Businesses that have digital reward programs in place have a massive advantage over the ones that use traditional loyalty programs.
At LoyaltyXpert, we have crafted highly effective brand loyalty programs, channel loyalty programs, and influencer loyalty programs for a wide range of companies. If you are considering implementing digital reward programs, contact our team to know how we can help.