Top tips for planning the best loyalty promotions for your business
Loyalty programs have become intrinsic to smart business strategies. With integrated loyalty software, rewards systems are even easier for customers to engage with. Customer retention time and time again proves cheaper than attracting new customers, and loyalty programs are the perfect way to keep consumers interested.
Having the right promotions within your loyalty program is paramount, if consumers don’t feel motivated by your campaign, you will lose customers. Providing appropriate promotions starts with knowing what your consumers want.
1. There are a number of good examples of personalised loyalty strategies that have worked for large organisations to make their customers feel valued, and more importantly, feel like they can make substantial savings on products that interest them.
Walgreens ‘Balance Rewards’ is a notoriously profitable example of the personalisation approach, with 80 million active participants. Walgreens uses the personal data collected from the consumer, along with past purchases to market promotions that consumers are more likely to engage with. This type of promotion strategy is very successful as the organisation knows what the consumer might want, and is, therefore, more likely to buy.
Personalised marketing can also make customers feel valued as promotions are tailored to their interests.
We’ve established that the best loyalty programs understand the wants of their customers, what next? A business needs to investigate the possible successes and losses of their promotion strategy. When done correctly, a promotion can transform a business.
There are five elements to running a successful loyalty marketing program: target audience, measurable goals, limited availability, sufficient promotion, and value. We have already discussed the importance of personalised marketing and target audiences.
2. Measurable goals are equally as important for a business attempting to widen the reach of their loyalty program. Setting goals are proven to improve the effectiveness of loyalty programs: when goals are set and recorded, they are 10 times more likely to be reached.
As a business, you need to set clear and specific goals in order to inspire ambition. Remember that the main objective of a loyalty program is customer retention. When possible, try and translate this goal into exact numbers. This will make it easier to recognise progression and failure.
3. Limited availability comes in the form of a tiered program in loyalty offers. Behavioural psychologists have noted that humans attach more value to things that are less common. Incentivising people to engage with your loyalty strategy can be done through exclusivity. People are far more likely to commit if they think they are getting a limited offer.
4. A basic top tip that frequently gets overlooked by employers is a simple one: train your staff to promote your loyalty program. Sufficient promotion is an underrated aspect of loyalty programs and it begins in-store.
Once you have your best loyalty promotions in place, make sure your customers know about them! Your staff interact with every customer on a personal level, and this is the best way to make sure every individual customer is aware of your loyalty program.
You can have the best sales promotion in the world but if your customers don’t know about it, your business won’t benefit. Your loyalty program has to be seen and understood by your target market, make sure you run a visible campaign.
5. Value is the most fundamental aspect of all customer transactions: when all is said and done, customers want to feel like they’re getting value for their money. Your loyalty program needs to offer real value to customers, otherwise, the fish will never bite. You need to recognise where customers need to save the most money, and then decide whether you can afford to give it to them or not; simple.
Running a successful loyalty program can make, or break a business. Wasted efforts lead to money lost. Make sure you understand who you are marketing to, why they buy from you, and what you can give them. Set yourself goals, and your business will be operating a successful loyalty program in no time!