In this article, we’ll outline 10 questions to ask yourself that are essential to the success of a loyalty programme.
1. How is the programme structured?
Structuring your loyalty programme will be essential to its success. When structuring the programme some things to consider are the goal of the programme, the on-boarding and redemption processes when are rewards redeemable, what loyalty strategy is appropriate in order to keep customers happy and to avoid excess cost to your business. Are all customers treated equally in the programme? The questions below will look at answering some of the questions posed above.
2. What do I want to achieve with my loyalty programme?
Loyalty programmes should align with business goals. Is your loyalty programme designed to help your business with Customer Retention, Customer Acquisition or simply to boost revenue? Whatever goal you decide upon, ensure your loyalty programme is built to further that goal.
3. How do I make my loyalty program profitable?
Ensuring profitability is essential when running a loyalty programme. However, profitability can look different depending on the goal of the loyalty programme. If your goal is Customer Acquisition, your profitability might be reflected later in the customer life cycle rather than at the start. If your goal is revenue, then your loyalty programme needs to start generating revenue immediately. Clearly define the goal of your loyalty programme in order to accurately measure profitability effectively.
4. What Loyalty strategy is best for my business?
When you creating a loyalty strategy for your business you must consider your business goals, customer needs, your resources and your budget. These will help you decide what strategy is best for your business. Sometimes it can be a mix of points programme and rewards programme or gamification and rewards partnerships. It’s really what will engage and excite your customers best and help you achieve business goals. Often B2B companies leverage reward partnership strategies to engage and reward customers.
5. What are the rewards partnerships?
What does your reward partnership system look like? Are you rewarding your customers with more of what they frequently buy, like discounts for high street brands? Or are you using the rewards to bring your customers to another aspect of your business? For example, wholesale companies are in a highly competitive market, selling an array of brands. To retain their customers they can use reward partnership loyalty strategy to increase the value of their service for their customers and differentiate their company from their competitors.
6. When are the rewards achieved?
Rewards must be within an achievable timescale in order to ensure customer loyalty. Rewards which are too easily attained will end up costing your brand and trivializing the experience for the customer. Rewards which are too difficult to obtain will frustrate customers and drive them away. Conduct research amongst your existing customers and use the data gathered to determine when rewards are achieved in order to best benefit you and your customers.
7. Who deserves what rewards?
Is every customer worth the same to your brand? Should your most loyal customers feel like their loyalty is being acknowledged? Offering exclusive “Platinum” level rewards for customers who are most loyal will further encourage their loyalty to your brand.
8. How do I measure success?
What makes your programme successful? A loyalty programme has to benefit both customer and business. Clearly define what success looks like in your loyalty programme and ensure it is easily measurable. As an example, some metrics to use when measuring success are Revenue and Customer Engagement. These metrics will give you a high- level view of whether your loyalty programme is working or not.
9. Are my staff properly equipped?
As the face of your business and its biggest ambassadors, your staff are going to be a massive driving force in ensuring the success of your loyalty programme. Equipping your staff to onboard customers quickly and efficiently will be essential to your programme’s success. Staff also need to be trained to handle each stage of the loyalty programme including reward redemption and issue resolution. Having cloud-based software to quickly grant access to any customer account for any member of staff will help to streamline the operation of the loyalty programme.
10. How can I encourage programme adoption amongst customers?
Initially, the focus of any loyalty programme will be programme adoption. Incentives are a great way to increase the rate of programme signups at the beginning of the programme. Offer customers a fast pass route to their first reward to grant them a taste of what your loyalty programme can do for them and encourage loyalty. Target your competitor’s customers by offering a reward to customers who switch loyalty programmes. Use your own customers as your brand ambassadors and incentivise referrals between family and friends.
For more on getting started with Loyalty Download our 5 steps to Loyalty Programme success Ebook