Super guide to make your loyalty members happy with more redemption options
Do you want to create an innovative loyalty scheme with the most satisfied customers who will be ambassadors of your brand at the same time?
Loyalty programs are one of the most effective tactics to increase revenue and encourage customer loyalty.
However, while they can be effective, customer loyalty programs are not that much innovative. This is why some retailers are trying to differentiate themselves and find innovative new ways to create loyalty programs to encourage customer loyalty, as their customers are already accustomed to specific programs and are rarely inspired to repeat purchases.
You need to add something new to the mix to build customer loyalty.
INNOVATION is vital for the effectiveness of programs.
Let’s remember the most critical elements to make a loyalty that ‘kicks’
1. Integration of new technologies
2. Correct data for better forecasts.
3. Different levels of premiums to your returning customers
4. Unique experiences and rewards.
You can see even more details about the essential elements that an innovative loyalty program should have here.
A loyalty program that works correctly and without difficulty for members is critical. And this is because cash rewards are not the only drivers of customer loyalty programs. The customer experience provides more significant long-term benefits.
74% of customers say that their experience on a site or an e-shop affects their willingness to be loyal, and 59% (source: adobe) of customers will change brand due to bad experiences.
A pleasant customer experience can take your store to the next level, so keep this in mind when thinking about your brand loyalty strategy.
Here are some ways you can make your customers’ loyalty program great:
1. Make your schedule clearly visible.
2. Facilitate their integration into the program.
3. Create a simple and easy redemption experience
4. Maintain the loyalty experience according to the look n feel of your brand
You can find ways to improve the user experience in your loyalty program in detail and with examples here.
This way, it is almost assured that you can make customer acquisition more efficient by reducing costs while still finding quality customers.
At the same time, you minimize the liability of your loyalty program. A good reward loyalty program should aim to reduce the rewards program’s rewards while maximizing the redemption rate.
How will you achieve this?
Adopt a points expiration program
Adopt a clear expiration plan, usually 12 months, with a CRM activation program to encourage customers to “burn” points, personalized in their preferences and buying behaviors.
Offer experiential rewards
Create a program that allows customers to redeem loyalty points for products, promotions, and experiences rather than classic refund systems. It would be best to use this strategy to exchange points with high perception products that cost very little.
Automatic redemption of points
Activate “Auto Redemption” and convert expiratory points into coupons.
Encourage members to spend points at special events
Create a community-related redemption option instead of cashback systems because it leads to a more emotional connection.
Encourage the exchange of points through loyalty wallets.
Digital wallets, such as wadata, allow brands to reduce their liability for their points while offering customers the opportunity to exchange their points for points in other loyalty programs, products, and promotions from other brands.
See all the examples of the top strategies for reducing liability points here
By combining all of the above into a joint agreement or alliance, as commonly stated, brands achieve their customer acquisition and retention goals even more effectively.
Combining the marketing capabilities of reputable brands is an obvious advantage of a Loyalty Coalition program. By combining communications, the various obstacles encountered along the way can be overcome more easily. In addition, options such as cross-selling and customer acquisition opportunities are maximized to strengthen your brand’s position. Finally, by using shared data for interests and preferences, customer experience can be improved.
An excellent example of a thriving Alliance Loyalty program is in aviation. Alliance programs such as Star Alliance or SkyTeam offer passengers the opportunity to adjust their loyalty miles with other airlines.
So now you know very well where to focus on creating a successful loyalty program for your brand.
But do not forget the basics, and what do we mean by that?
Decide what your target audience is
You need to look at the sources of traffic to your store and target only your potential audience. The more segmented your audience, the better the conversion and loyalty rate you will have.
Investigate Consumer Behavior in Your Online Store
It would be great if you could constantly monitor your consumer behavior. Behavior analysis plays a vital role in understanding your customer’s motivations and what they want from your business.
Save your consumer data
Loyalty programs involve a personal connection with your customers and make them feel valuable to you. Storing your customers’ details, such as their birthdays or important events and anniversaries, will help you remind them and give them at least one greeting, declare your presence and bring them back into your shop.
What is your need to create a loyalty program?
Since you have decided to start the loyalty program for your e-shop, we strongly recommend that you measure the results you want to achieve and the possible duration. If you’re going to build a community of loyal customers, you may have planned a membership program of up to 25% of your existing customers within one year of starting the program. Setting goals at the beginning of your loyalty program will help you identify where you want to go and lead you to complete the next step to measure your efforts and customer response.
When we talk about our customers and measure behavioral data in numbers, we often make a common mistake, focusing on conversion or revenue. Instead, metrics that provide a useful result for customer analysis are
Customer service life (CLV)
Net Promoter Score (NPS)
Customer Loyalty Index (CLI)
Set your budget and follow it
This is the most crucial part of any business. No proper budget analysis for any project can weaken business accounts. Therefore, it directly affects the budget decision when you plan to create a loyalty program. Its existence does not mean that you have to reward your customers with the cost of your business. The proper budget analysis considered at each stage is essential.
Let us work together to study your audience and help you create a program where all users can earn points with their digital wallet and redeem company/store coupons as they wish!