A customer loyalty program has become an integral part of the marketing strategy of retailers around the globe. Not tapping this powerful tool means losing your market share in the short to mid-term perspective. However, not using it wisely can give a similar effect, since can incur tangible cash outflows and leave the brand loyalty level flat.
So, take a look at the recipe for building a really value-adding customer rewards program.
Key features of a successful customer loyalty program
- Simplicity. Make it simple to join, explain all the aspects of the loyalty program, in order to escape even a tiny chance for a customer confusion. The fewer the rules and restrictions the better.
- Brand alignment. Keep your customer rewards in line with your clients’ expectations. For instance, retailers in a luxury or premium segment would not typically offer loyalty coupons or discounts, instead, they would allow their clients to redeem points for buying additional products.
- Personalization. Probably the most crucial element in customer engagement strategy these days is targeted program communications. They should be relevant, on-time, and delivered through multiple channels. Streamline your data coming from multiple channels since the more data you have the better you know your customer.
- Customer-centric approach. Make a clear segmentation of your customers and use metrics to track the impact of each group on your performance. Use a proactive approach rather than reactive when you see any space for improvement.
- Modularity. Offer different groups of your clients multiple options based on their value so that everyone could make their own mix of customer rewards. As an example, a low/medium value customer might want to opt for rewards alternatives with a service upgrade.
- Continuous revision. Once the customer loyalty program is rolled out, track the results of the campaign continually and revise it in accordance with customer’s feedback to offer even more personalized and unique rewards.
Loyal customers buy more, they endorse your product to family and friends, overall tend to be more forgiving and are first to signal on the opportunities for improvement when something goes wrong. Consequently, your bottom line improves and you become genuinely unbeatable with such a faithful army of customers.
Furthermore, in a vibrant and highly competitive environment with multiple communication channels make sure you have a tech agile partner who can swiftly incorporate any changes to your customer loyalty software and streamline your loyalty program. For additional information on our cutting-edge customer loyalty solution please refer to Loyalty Program Software.
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