4 Tips For Your Customer Loyalty Program

Customer loyalty programs are popping up at so many different businesses, from small-local boutiques to large corporations. With the rise of customer loyalty programs, we are noticing common mistakes businesses are making with their program, hurting them achieve their maximum ROI. Read our 4 key tips to fix or avoid the mistakes we see being made in today’s market.

Tip 1: Focus Rewards on Customers

One common theme we have noticed across customer loyalty programs is businesses and organizations have lost focus of their rewards strategy. Instead of focusing on the interest of their customers, the rewards being offered are more generic and company-focused. As a result, customers are less engaged in the loyalty program.

What we mean by company-focused rewards is companies are providing rewards that are convenient for them to provide without thinking if the reward provides enough incentive for their customers. For example, if you are a male and you receive an offer from a new retail store offering dresses as part of their loyalty program gifts. These gifts don’t interest you,, causing you to become less engaged.

Businesses and organizations should provide rewards that specific to each customer group. By studying the buying habits of your customers, you can group them into specific categories. Thus, it becomes easier to provide rewards that your customers will be interested with.

Tip 2: Promote Your Customer Loyalty Program

Based on our experience, many companies forget that they will need to promote their customer loyalty program to generate interest. Companies become so involved in points and rewards strategy, assuming that customers will just be interested in the program. But just like a sales promotion, you will need to promote your customer loyalty program to them.

We recommending running email and/or SMS campaign to your customers, alerting them about the points strategy, benefits and any additional details. Additionally, create a landing page for your customer loyalty program that provides your customers with an easy place to learn more about the program. And for those companies that have an in-store experience, we recommend creating small brochures or tent cards that provide information about your loyalty program.

Tip 3: Don’t Push Sales

Although the goal for a customer loyalty program is to increase the purchase frequency from your customers, your points strategy shouldn’t only reward purchase-related activities. Non-purchase activities should be rewarded as well because they provide an additional touchpoint between businesses and customers.

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We recommend encouraging your customers to leave reviews on social, invite friends and take a survey by providing them with points that they would earn thru a purchase. The more a customer is engaged with a business’ loyalty program, the more likely they are to stay loyal with the business.

Tip 4: Don’t Forget to Maintain Your Program

Another major aspect that seems to be forgotten by businesses is to update their customer loyalty program. After their customer loyalty program has run for long period of time, businesses forget to make updates to the program. As customer-needs change over time, so must the program. If not, customer engagement with the loyalty program will decrease.

Changes to the customer loyalty program must be based off the changing customer needs. So customer loyalty program should base their changes on the buying habits and other activities of their customers.

If you have any questions about these tips, please feel free to contact us at support@sailplay.net or by completing the form below. A member of our team is ready to help you!

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