Loyalty programs are among the best ways to drive company revenues. By making more customers loyal to your brand, you’ll have an assured revenue stream. Loyal customers attract more customers by marketing your products and services from a trusted perspective.
In addition, they will buy into your newly introduced products and services faster than new customers. These customers are bound to understand your occasional shortcomings more than new customers. This is why 90% of companies install some form of customer loyalty rewards program.
Before you set up yours, you need to know what qualities the best loyalty rewards programs share to ensure success. This article highlights the best among these qualities.
Features of the best loyalty rewards programs
84% of customers report that they would gladly stick with a business that offers a loyalty program. Besides encouraging customer loyalty, a customer rewards platform is an acknowledgement of such loyalty. Customers feel good when you recognise their loyalty and set up ways to reward them. So, what should your rewards program look like? Here are features of a good loyalty rewards program:
Simplicity and ease of use
Think of a poorly designed business website. Few customers have the patience to suffer through using such a website.
A customer loyalty program should be simple to use for all your customers. An example is a loyalty card for exclusive discounts at your retail outlets. Signing up for the card should be as fast as giving contact details at checkout. The customer should then leave with the card already processed or have it mailed to their residence. Anything more complicated will fail, since no one has the patience to hang around your shop waiting for a loyalty card.
Another simplicity factor is the ease of redeeming loyalty points in online and local retail outlets. Once the customer presents their card for redeeming points, they shouldn’t have to fill out forms or wait longer than the checkout processing time. Furthermore, all discounts should automatically factor in at checkout. Customers shouldn’t have to ask for or calculate the discounts.
Some rewards programs go as far as eliminating the need for physical cards. Smartphones can carry QR codes that act as physical cards, further simplifying the process.
Focus on great experiences
A loyalty rewards platform that feels transactional discourages customers’ interest. Customers want to feel like their value is not pegged only on how much they can purchase. Therefore, keeping your rewards program solely focused on rewards will fail. Granted, there has to be a reward for participation, but the process, engagement, support, deep understanding, and an infusion of fun are critical.
Therefore, ensure that your loyalty program connects with the customers. Let them feel you hear them and understand their needs. As their needs change, so should your efforts to remain their primary source of information and solutions to those needs. Never forget to thank your customers for being loyal to you. Saying thank you goes further than deducting a few cents off the purchase price. No doubt, take those cents off the purchase price, but also ensure the buying process is smooth and convenient to the customer. This way, you avoid it looking like the discount was meant to appease a poor shopping experience.
Emotional connection with your brand
Many other businesses offer solutions as good as or better than yours. However, how do customers feel about those businesses? Customers can only recommend your brand after they feel great about it. You want customers to recommend your brand to their friends and family. No other marketing effort possesses the power of such referrals.
An excellent way to establish an emotional connection is to humanise the loyalty program. What is the name of your loyalty program? What quote or hashtag refers to the loyalty program? Do your loyal customers have a name or slogan as their identity? Nike’s slogan, Just Do It, aptly describes every athlete’s efforts and inspires peak performance. It’s catchy and instantly recognisable. This emotional and inspirational connection gets more customers interested in what the brand sells. Furthermore, there are communities behind the slogan and brand; Nike+ Run Club and Nike Training Club. Members enjoy exclusive offers and find themselves loyal to the brand.
A sound customer reward system stays in constant communication with the customer. Like any other relationship, irregular communication with long periods of silence stifles loyalty. It then becomes easy to fall for the competitor’s efforts. Besides communicating offers and discounts, you need to provide quality content to your loyal customers. An informative and educative blog will keep loyal customers interested in the brand. In addition, asking for customer feedback gives them a chance to let you know areas of improvement. More importantly, it keeps them engaged with your brand.
In communicating with customers, always provide updates about their loyalty program standing. For example, let customers know how many points they have added after a purchase, either via email or text. Remember to thank them for the purchase and offer any exclusive perks for their vintage.
Ability to wow
Customers have seen and heard of the usual customer loyalty program rewards. Most of them expect certain rewards with no excitement other than the chance to save some money. The best customer loyalty programs surprise their loyal customers once in a while by offering something new. A loyalty rewards scheme is much like other relationships. You cannot make a positive impression by being boring and predictable. Therefore, institute exciting offers and other experiences to get your loyal customers talking.
The best loyalty rewards programs share these qualities to beat the competition and ensure long-term loyalty. Designing such a program can be a tricky process. Let us handle this process for you, as you focus on producing the best products and services for your customers. You can book a demo with us to learn more about our approach and processes.