Every business is unique, and each loyalty program should be customized to its audience. However, some general rules can be applied to all programs to maximize their effectiveness.
A successful loyalty program should reward a variety of actions with various benefits. These can include free products, early and exclusive merch, points systems, awards, etc.
Reward Choice
When designing a loyalty program, it’s essential to understand your customer base and their needs. The best way to do this is through market research or analyzing the behavior of your existing customers. You can select the right rewards for your program based on these insights. It could include vouchers to spend at the store, discounts on future purchases, or even donations in their name to charities of their choice.
Doing this provides a variety of reward options for shoppers, and it helps maximize the value of their rewards.
In addition to this, a loyalty program can also offer customers exclusive one-off perks. For example, a credit card company might provide a welcome bonus of 10,000 miles or points that can be redeemed for airline tickets. It can be a great way to incentivize the program and attract new customers.
Extend the Reward Period
Brands use various assets to promote their loyalty programs in-store, online, and on social media. For example, a retailer might use the PA system to announce their program to shoppers when they arrive. They include signup QR codes on product packaging or even in their app so customers can quickly join when they buy online.
Other brands leverage their loyalty apps to create personalized customer shopping experiences.
The more transparent the relationship between money spent and rewards earned, the more engaged your program members will be. Consider a point system that clearly shows every dollar’s value and tiers, showing customers how close they are to their next reward.