How to set up a loyalty rewards program?

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Loyalty Rewards Program

How to set up a loyalty rewards program?

Loyalty programs have a number of advantages such as increased company revenue and the ability to collect new customers. They are an important marketing tool and a valuable weapon for your company to differentiate itself from its competitors.

A good loyalty program can further the impact of a good customer experience- however, it will not compensate for a bad one. Companies need the right metrics to measure customer experience in a multichannel retail marketplace and they need to make that experience the starting point for strategy. The loyalty program, as part of that experience, also needs metrics including Key Performance Indicators. A great loyalty program uses the customer data it acquires to drive value across the entire business.

The first step in implementing a successful loyalty program is to choose a great name. The name of the program needs to arouse curiosity and interest to encourage customers to participate. It also needs to be easily distinguished from the numerous loyalty programs that consumers are probably already a part of. Create a deeper meaning for the program. It’s your job to make it more about values and less about the money, getting your customers excited about it.

Another important step are the rewards. Your customers should receive rewards for their purchases, as well as for other actions like:  watching product videos, engaging in your mobile app, following and sharing social media content, and subscribing to your blog. Offer more than discounts, customers who spend at a certain threshold or earn enough loyalty points could turn them in for free tickets to events and entertainment, free subscriptions to additional products and services, or even donations in their name to the charity of their choice. 

In today’s customer-centric and data-reliant business landscape, a loyalty program is often only as good as the technology that supports it. The main goals of any good loyalty program (customer acquisition, customer retention, gathering customer data and insights, building brand affinity etc.) all rely on technologies to be realized. Companies often lack the resources and expertise to implement the technological capabilities needed to optimally reach customers. This makes choosing the right loyalty technology partner one of the most important decisions a company can make.

It is also important that each department within your business fully understand, support and embrace the loyalty strategy that you’re going to unveil. Once your plan is in place, provide training at all levels within your business. The training program should be an ongoing employee obligation. This will offer the highest possible success rate to impact your company’s loyalty program.

Deploying a loyalty program is a great first step. However, measuring the results you are generating for your business is vital. With this, you can detect what is right and wrong and always have the ability to improve it. An analysis every three months will provide the insights needed for the program adjustments.

Customer loyalty programs are crucial to building a better business, no matter how big or small your enterprise is. By creating a program that is attractive to your consumer, analysing your results and training your employees correctly, you can insure that both your loyalty program and your business reach their full potential.

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