If you’re a retailer or in the hospitality business, a loyalty program is a truly valuable opportunity to continually engage with customers and build a more loyal customer base (obviously!).
Unfortunately, having a loyalty program and having an effective loyalty program are two different things. I found some interesting, yet sobering, statistics online that, to me, scream opportunity:
- 85% of loyalty program members haven’t heard a thing from the provider since signing up
- 81% don’t know the loyalty program benefits or how/when they will receive rewards.
- Only 1 in 4 consumers feels “very loyal” to providers (and just as many have zero loyalty).
This is an opportunity because if you put together a great loyalty program that is actually fun and valuable for your customers, you are way ahead of the curve. An article that appeared on Social Media Today this summer offered 5 very helpful questions to consider before starting your loyalty program to ensure your program rocks. Here they are:
1. Would your customers benefit from a tiered membership program? You know these programs: the more you spend, the bigger the savings or rewards. The successful ones are simple and engaging: spend $50, get a $10 coupon to use during the next 30 days; spend $100, get a $20 coupon, etc.
2. What exclusive rewards would be most engaging? This is where you can get really creative! You could try a “surprise and delight” tactic, in which you reward your best shoppers with something truly special, like a gift card, free product, or special event. Other ideas: samples, early access to a sale or product, after-hour shopping or VIP parties, etc.
3. Do you want to link rewards to a credit or debit card? These types of programs track a customer’s sales and trigger offers at set amounts. Some retailers allow customers to earn rewards via social media interactions as well, which I think is a really cool, engaging idea.
4. Can you partner with an affiliate? You’re also familiar with this concept, since you have been able to apply airline and hotel rewards for shopping, dining, etc. for years. If you go this route, find a partner whose products or services are complementary to yours and fit into your customer’s lifestyle.
5. How will you cross-promote your program and encourage interaction on social media? Your customers could earn points or rewards for “liking” you on Facebook, following you on Twitter, etc. Again, get creative, but keep in mind what makes most sense to your customer base.
If you have a loyalty program, what strategies have worked best for you? Share your tips and ideas in the comments below.
Image courtesy of Wikipedia
Google+Web.com is now offering forums designed to support small businesses in cities throughout the US. Learn more about these forums here: http://Businessforum.web.com/
Tags: loyalty programs, Marketing, social media
Posted in Marketing | 8 Comments »
