It takes a quick peek into anyone’s wallet or e-mail inbox to know which loyalty programs they’re subscribed to. What’s more amusing is that these programs work effectively, whether or not customers take advantage of them. Reward systems and loyalty programs are a great way to retain patrons to your business. Returning customers spend two-thirds or 67% more than new customers.
However, not all businesses have them. If you’re thinking of adopting one, talk to the experts about their membership marketing services for UK-based businesses. Here are what companies ought to do to pull off a powerful customer loyalty program.
Dive deep for a reason
Before thinking about starting a reward system for your customers, ask yourself, “Can my business afford to dole out rewards?”
In general, businesses can be better suited to implement a loyalty program if they have a profit margin of above 10%. This ensures that the net increase in customer lifetime value can cover the outlays of a loyalty program.
You can also look at your sales. If your product or service tends to be patronized repeatedly, then you might be suited to start a loyalty program. But if you deal with different customers daily, then the brand recall might not work in your favor.
Pick the right program
If you do decide to start a loyalty program, pan out all the mechanics of your plan. Establish the program’s goals. It’s usually something quantitative such as garnering more registrations, seeing more repeat customers, or getting more mileage for your social media presence. Align your plan with your resources and solicit suggestions for improvement and implementation from all departments, especially your front liners.
Identify the critical customer persona for your program. While it makes sense to look into your customer database, it doesn’t necessarily mean that everyone there is willing to join, so find the right segment.
Launch to loyal patrons
While anyone can join your loyalty program, try to please your most loyal patrons first. Try conducting a market interview with them to know their pulse on the matter. You can leverage e-mail marketing for this.
Here are some questions that you might want them to answer: Would they consider paying for an exclusive membership or reward system? How long would they be willing to comply to redeem something? Do they prefer an in-store system or a partnered system? Will tiers work for them?
Remember, these are your first few brand ambassadors, so building a relationship is essentially a loyalty program.
Don’t confuse your customers
If you’ve fleshed out your idea, make sure that your marketing team implements the program in the simplest way possible. Keep the program regulations, qualifications, and restrictions to a minimum for both loyal and new customers. Not only does this ensure that you can comply with your reward system; this also sets up your business for more repeat purchases.
Bear in mind that everyone in your storefront has to be able to explain the rules of the program. Even your back offices, namely post-sales customer support and digital marketing team, has to be in the loop.
Once your program is up and running, never forget to stay true to its purpose of providing value to repeat customers. Remain generous and personal while staying within the regulations of the program. In time, your most loyal customers will do most of the talking for your business.
Remember that a reward system isn’t the only means of providing excellent service and value to both new and old customers. Great customer service, efficient checkout systems, and accommodating staff are just some other aspects that will influence a second visit.