Launching a Loyalty Program is Easier than You Think
Loyalty programs can work wonders for your business without breaking the bank. Customer loyalty programs are a great way of adding value to customers and create long-term benefits for your business.
For ages, loyalty programs have been nurturing the customer base for many businesses and keeping value-savvy customers engaged to earn repeat business. This is just the one piece of the big picture. Customers today are used to seeing rewards in various forms; the customer loyalty program is almost a necessity to stay ahead of the competition. All you need to figure out is what kind of incentive or reward program are you going to offer your customers.
Choosing the loyalty program provider
Launching a loyalty program is easier than you think once you underline your business demand and brand strategy. Loyalty programs offer everything from an advanced mobile app, email marketing, automation, marketing, reviews and the list goes on. But first, you need to choose the type of loyalty program that works best for your business. You can implement a tiered reward program, point-based system, membership fee system, partner rewards, or third-party loyalty services or combine more than one as per your business requires.
After identifying the loyalty program provider, you can work on implementing it and then educating your customers about it. The process involves integrating the loyalty program with your business. Modern technology allows for seamless integration using customer relationship software and data tracking.
Getting the customers interested
The last and most crucial step is to market the loyalty program. In an increasingly crowded business space, the loyalty program will help differentiate you from your competitors and give you an edge over others. Educate your employees about the loyalty program and train them on how to get the customers enrolled for it. Additionally, you can get your customers interested in the loyalty program by offering sign-up rewards and getting further rewards at each level to make them sure that they keep coming back.
Measuring the loyalty program success
The value of the loyalty program can be tracked by monitoring customer purchases and providing analytics as well as reports to analyze the turnovers. Statistics show that loyalty program members typically spend 18% more than other customers – though that can vary based on industry. (Source)
The loyalty program can be started using a simple punch card to an evolved one based upon your business requirements. It is not just aimed at keeping the customers happy but also gathering information about their buying habits to help you shape your business strategy. The data collected using the loyalty program is like a gold mine that can be tapped to generate more revenue using cross promotions and upselling.
The loyalty provider typically gives the analytics on program performance to track the number of customers, reward redemptions, campaign performance (email, SMS, events etc.), number of customers enrolled on a monthly basis etc. The analytics can provide you useful insights into the loyalty program’s success and learn how to boost profits for your business. It is profitable to choose a premium loyalty program that targets high-spending loyalty members, offers seamless digital integration and helps in the marketing efforts to drive revenue as well as help your business stand out.