& How to revitalize it!
Loyalty programs are gaining a lot of prominence these days. They are an effective way to engage customers and retain them as customers, but there’s a lot that needs to be done in order for brands to make the most of their loyalty programs.
To get started, focus on creating a user–friendly Loyalty Program that your customers want. Remember, everything is easier to manage when it is streamlined and fits the needs of its target audience… but more on that on another day.
Today let’s focus on common ailments and tested cures that marketers should focus on to maximize their loyalty program.
If you want to attract new members, then you need to promote your loyalty program. Promotion is a great way of getting people involved in your program and encouraging them to stay loyal.
Your program may be decades old but the customer across the counter may have just heard about it. So, you need to make sure that your loyalty program is well-promoted in all of your marketing activities.
The “Program Benefits Promise” and its promotions should also be easy-to-understand so anyone can understand what they mean when they see an in-store promotion, an email, or a banner ad – even if they don’t speak English as their first language!
Rewards should be attainable, relevant, and timely. The more you can do that, the more your loyalty program will thrive.
If rewards are not attainable then it defeats the purpose of having a rewards program in place. You will lose motivation for reaching out for additional points or redeeming them for gift cards because it feels like an impossible task.
Rewards need to be personalized so that each member feels special and appreciated by the Brand. If all members have access to the same benefits then there won’t be much incentive to stay active or return at future dates because they feel like they aren’t being appreciated by the Brands.
Overcomplication is a major reason for the downfall of loyalty programs. The more complex a loyalty program is, the harder it will be for your customers to understand and engage with it. This results in fewer rewards being redeemed, which then reduces customer engagement and satisfaction.
The enrolment process needs to be simple and straightforward. It’s also important to make the enrolment process accessible so that your members don’t have any trouble signing up or updating their details.
The redemptions process needs to be easy and convenient too. If it’s not, then customers are likely to give up on redeeming their points altogether.
The program should also be flexible enough so that members can use their rewards in whichever way they prefer–whether it’s via digital or physical channels.
The loyalty program should be able to adapt to new trends and consumer needs. Adapting to the changing environment is important for the success of a loyalty program. The program should be able to accommodate new technology and trends, as well as changes in consumer behavior.
If your consumers are mobile-first then the program can’t rely only on POS–based interactions. If travel excites your members your rewards cannot only offer in–store redemptions. If your member is a social butterfly then the program needs to offer benefits on social platforms.
Continual evaluation and evolution will keep your program relevant in an ever-changing world of consumers and their preferences.
Loyalty programs are here to stay as they are one of the most significant drivers of revenue in any business. So do keep these common ailments and their cures handy to maximize your returns from yours!