Customer loyalty is critical for retention, referrals, and company success. Selling is no longer only about the sale, it now requires a business-customer relationship. You want customers to return, but you also want them to remember the trust and confidence binds you, that's brand loyalty.
More and more companies are finding loyalty programs to be a great way to manage return customers. These systems are designed specifically to build loyalty through unique customer experiences. Loyalty programs have proven to deeply affect the company; boosting growth and the company’s reputation. On the surface level, loyalty programs rewards increase sales. These programs also provide vital market research as the process tracks and reveals information about customers.
It is critical your program encourage loyal customers to not just love your products or services, but to promote them and the company to others. Here are three tips for building a strong customer loyalty program.
Do Your Research
Make sure you initiate a program that fits. This will only be possible through thorough due diligence. Access customer data through inventory history, website analytics, conversions and sales. Cultivate an understanding of customer behavior and develop concepts for the types of campaign they would respond to. Using the nature and size of your business, create a loyal customers program that helps accomplish your goals alongside ways to match customer expectations and behavior.
Mobile loyalty programs have been proven more effective than traditional outdated programs (think cutting coupons from the newspaper) because mobile loyalty translates into immediate results. If you know someone without a cell phone, than they are an exception to the rule. Everyone has a cell phone today, and that means anyone can be a targeted loyalty member. Through direct SMS communication, you have an opportunity to use digital coupons to promote rewards, discounts, sales, events, and new goods and services. It's a great way to remind your customer to come in and it also leaves positive brand impression.
Carefully Choose Incentives
To choose the best incentives for your loyalty program, you need to understand the needs and behavior of your consumers. Choose wrong and you potentially devalue your products or services. Experiential rewards are great. They give return customers satisfaction and add value to their relationships with you. A good example is providing customer loyalty with points for their purchases. The points card is one of the most popular models for loyalty programs. Instead of giving some arbitrary freebie customers may not even need or want, they allow customers to make their own decisions about what to do with their rewards.
Create a loyalty program with care. It can make or break your reputation and brand. Perform your research, analyze your data, and experiment and adjust the program as needed. Loyalty programs are actually inexpensive to maintain, especially when you consider the ROI on keeping customers. Give your customers monetary, emotional and convenient experiences that are guaranteed to influence buying habits and loyalty.
Download the Abierto case study which takes a look at how one of our clients is using a customer loyalty program to engage over 11,000 followers.