Loyalty programs are everywhere these days; from giant businesses to local retail stores. Businesses now have understood that retain current customers are more profitable for a company rather than gaining new customers. In fact, according to a study, acquiring new customers costs five times more than nurturing existing customers. Hence, companies are investing more in offering extraordinary value to their customers and keep them loyal to the brands. Most of the time customers are offered some kinds of rewards such as points, coupons, discounts, cash back, etc. to keep getting the repeat business from existing customers.
Let’s understand the basics of Loyalty programs;
Loyalty programs are structured marketing strategies to increase repeat business. Usually, merchants introduce schemes in the market that entice customers to make a repeat purchase.
Generally, loyalty programs are customized to match the explicit needs of your business. Each time the program is designed, customers are at the focal point. Depending on your industry verticals and demand of customers, a loyalty program is intended. For instance, retail businesses are offering loyalty cards, which add points after you make any purchase. Also, customers can redeem those points on the next purchase.
Now, you must be wondering how to create a successful loyalty program?
As every business is unique, a loyalty program should be unique according to your requirements. Go through this article to get in detailed knowledge of creating a loyalty program that generates fruitful results for your business.
First and foremost, you should ask these questions before creating the loyalty program.
1. Does your business need a loyalty program?
2. When is the right time to launch the program?
Once you get an understanding of whether you need to introduce a loyalty program to boost your sales, now you need to follow the steps to create the successful rewards program.
1. Understand your audience
When you are creating a program to reward, potential customers, you need to understand what they want. Obviously who do not like to get free perks and rewards? But, if you know exactly what your customers are looking for, you have an add on benefits to increase sales. Before implementing the program, do research about what your customers would like to receive as a free gift. For instance, when you provide what customers like, you are not only getting more business but also building strong relations with the customers.
A giant banking service provider in India, ICICI bank offers rewards points when a customer uses the bank’s credit card to make a purchase. In addition to the purchase, the terms & conditions are also in favor of customers such as no limit to earning rewards points, no expiry of the earned points, and many more.
2. Offer a distinct value
Create a loyalty program that offers exclusivity. By administering rewards, you are inviting sales along with offering distinct values to your customers. As a rule of thumb, humans would like to make repetitive actions, if they find some kind of values in it. You understand your customers, products, and services better than anyone else, so leverage that knowledge to create an elite valuable experience for your customers.
Further, most successful businesses offer a discrete value to the customers, and that why they are victorious. For example, because of its unique proposition, Apple is one of the most successful American multinational technology companies. The company always offers values of ‘uniqueness’ with the different features of the mobile devices to their target audiences. Hence, your loyalty program should have a different yet important value proposition for your customers.
3. Strive a mixture of rewards
The mixture of rewards is another way to add more value to your loyalty program. Other than offering a discount, you should use a variety of rewards options such as free tickets to the event or movie, organize a contest, free subscription to products or services, etc.
Depending on the type of your business, and industry vertical opt for multiple customer loyalty programs to gain more brand loyal customers.
4. Establish customer engagement agendas
You need to let your customers know about the loyalty programs you are offering. Hence, you should make multiple ways to keep them informed about the program. You may use different ways to keep your consumers about the loyalty program that includes email, direct mails, SMS, social media posts, advertisements, etc.
Moreover, customers easily forget about the earned points, so remind them to use the programs. For this, you can use any strategies which are convenient for your business. As execution is the most crucial part of any process, identify and define the strategies you are going to use for the loyalty program.
5. Add social connections
Combining a social component to your loyalty program is one of the most immeasurable ways to keep customers coming back. When you establish a substantial community around your brand, customers will have grounds to connect with your company. Be it transform monetary benefits or gifts.
With the chat rooms and forums, you can always gauze what your customers like and what they think about your brand. Moreover, it also gives you the enormous benefits of word of mouth publicity. This is an exceptional step for a loyalty program, although it can generate true acumen and longevity. So, whenever you are about to launch a loyalty program, do not forget to include social connections.
The bottom line is that a loyalty program is essential to keep retaining your current customer base. In order to increase the brand loyal customers, you should offer them some kinds of rewards. Thus, loyalty programs are introduced in the market which is a great way to get repeat business from your potential customers.
So, do you want to adopt a loyalty program for your business?
LoyaltyXpert offers eminent loyalty programs for your business that will help you to extend the scope of profitability. Our expert team will analyze your business offerings and according to that, we deliver the customized solution for your business. We offer loyalty programs that help to retain more customers for every brand. Get in touch with our expert team at LoyaltyXpert and embrace the brand new loyalty programs to expand your business growth.