Not all loyalty reward programs are created equal.
The most effective loyalty reward program offers a reward system that
is quick, exciting, and efficient. Participants in a customer loyalty program
must enjoy an unparalleled selection of brand-name merchandise, gift
certificates, travel rewards and in-kind rewards that motivate them to return
time and time again.
Here are five suggestions for putting a loyalty reward program to work for
your company:
Build a Database
Every loyalty reward program begins with a database of customers who
provide and share information with you during enrolment. The biggest
opportunity of retaining and growing your business is acting on this
knowledge. By compiling customer data throughout the life of your loyalty
reward program you can target your offers based on their past preferences and
purchase histories. If your original database contains a large number of
customers that have lapsed or have declined the amount of business they are
doing with you, offering an instant reward on activation is a great way
to bring them back.
Raise Customer Expectations
The best loyalty reward programs build excitement by letting customers know
exactly what rewards they can expect and how to earn them. If you
signed up for a rewards program but didn't know exactly what you might earn as
opposed to another company that offers a gift with purchase at enrolment and a
bonus with every third buy you would find the site with the clear rewards more
enticing.
Offer Readily Obtainable Rewards
To encourage maximum participation in your program, make your rewards
readily obtainable and graduate them so that you transform a higher percentage
of your database from low-value to high-value customers. This will avoid the
drawbacks of programs that reward primarily on enrolment, which tend to
attract low-value price switchers who join to take advantage of first-time
buyer rewards. Graduated rewards can invigorate sales of your higher ticket
items and can provide cross-selling opportunities for other products or
services that your company offers.
Provide In-kind or Soft Benefits as Rewards
A loyalty reward program enables an organization to identify and categorize
their customers and create a connection between customer loyalty drivers and
the events, interactions and experiences that impact loyalty. Companies should
identify three to five key areas that their customers or customer segments
value. Doing this will help determine what in-kind rewards and soft benefits
can be used in your program. Offering benefits such as access to
faster-moving lines or special parking space can cost little, but carry with
them a perceived prestige An example may be an airline reward
program that provides in-kind frequent flyer travel points and for those that
travel regularly the soft benefit of pre-boarding prior to other passengers.
Communicate Often
Communicate often. The key to success is to send frequent communications
that introduce new perks and special offers via email or direct mail. Since
customers are actively interested in news about their rewards, they’re
receptive to receiving ongoing interaction which ultimately leads to more
sales..
An effective loyalty reward program recognizes and rewards customers
based on their purchase behaviour.
Consumer Loyalty Program
Customer Loyalty Program
Customer Loyalty Program Web
Discount Loyalty Program
Employee Loyalty Program
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Loyalty Program Software
Loyalty Reward Program
