There are few things more valuable to a business than loyal customers, but how do you attract those shoppers and keep them coming back?
Naturally, delivering great service and products is one way – but a loyalty program is even better.
Offering loyalty benefits is a great way to say 'thank you' to returning shoppers, as well as attract new ones – and there are other benefits for businesses, too.
Forging a connection
Today, customers want to connect emotionally with brands, which is why you may have noticed that many businesses prioritise open and honest communication with shoppers.
The business tells its story, hoping customers will identify with them and support them accordingly.
Loyalty programs provide a platform for that long-lasting connection; it is not just about ‘freebies’, discounts and rewards, but also communicating and connecting with customers in a positive way.
Harnessing technology
Traditionally, a loyalty program may have been confined to email communication or even the classic ‘snail mail’!
Now, businesses can provide an omnichannel experience for their customers. When setting up a loyalty program, these are some of the ever-expanding points of interaction at which you can provide benefits for and communicate with customers:
Apps: Send alerts, discounts, or offers to customers through your business’ app; alternatively, an app can offer a fun and convenient way to interact.
Social media: Social media is now a necessity for loyalty programs. It is not only convenient but also gives customers a chance to share and promote your business to like-minded shoppers.
Email: We all hate spam, but when your customers are engaged enough to willingly seek email offers and communication, take the opportunity!
Email is a great way to announce sales, introduce new products, educate customers, or offer exclusive discounts.
Text messages: Text messaging is a relatively new advertising technique; however, it’s very effective.
Use texts to inform your loyal customers about special offers and limited-time opportunities, but be careful not to appear as spam or a scam!
This omni-channel approach lets you show customers they are valued and makes them feel included.
It also keeps your business top-of-mind, allowing you to take advantage of opportunities to secure a sale at any time of the day.
Understanding what customers want
Delivering value is one of the key components of any loyalty program. When creating your loyalty program, research what your customers respond to – whether it be exclusive sales, birthday discounts, or by earning points.
Either in-store or online, you can also reward customers with a special gift at the point of purchase.
This shows genuine appreciation and asks nothing of the customer in return.
Disguising the ‘sell’
Loyalty programs are, of course, designed to increase customer loyalty and keep people shopping with you.
The end goal is generating more sales and profits – but it should never appear that way.
Building customer loyalty is about making genuine connections and showing appreciation for continued business.
You should offer special deals and benefits to loyalty program customers, but only if it delivers real value to them.
An example of this is tier-based loyalty programs.
This system can work well psychologically, as customers will want to maintain their current tier – or, if they are just shy of the next tier, spend a little more to reach that threshold.
However, the system can fail if reaching the next tier does not deliver a tangible benefit.
Similarly, according to research by Experian, consumers respond better to promotions that feel special and personal.
For example, birthday-based rewards emails have a far higher transaction rate and generate more revenue than standard promotional emails.
Creating meaningful interactions
Encouraging customers to be loyal to your business is a long and ever-changing process.
All customers value different things, so don’t be afraid to interact openly and honestly with them.
Ask what they want, give them a say in new products or ideas, make your interactions meaningful, and people will take an interest.
The rewards of a loyalty program are a bonus and a way for you to thank them for their contribution.
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