We recently discussed the importance of setting professional New Year’s resolutions that will drive customer loyalty in 2017. But now it’s time to talk about loyalty best practices and how you can use these professional resolutions to build a successful loyalty program in 2017. When you’re ready to build your own loyalty program, contact Mpell Promotions and we’ll help you to create promotions and rewards that get you the attention you deserve!
Read on to learn more about how to grow your business with loyalty programs this year.
New Year’s Resolutions Recap
As we mentioned in our recent blog post, your secret to customer loyalty lies within building customer trust, offering personalized rewards, and providing your clients with a personalized experience. These three tricks may seem simple and obvious, but there’s more to it than you may think.
To build trust, you must earn a customer’s trust—and you can only earn a client’s trust once you’ve offered them a reliable benefit (and outstanding service), like a loyalty program or reward.
Best Practice #1: Encourage Your Customers to Commit
Your first step toward building a successful loyalty program should get your customers to immediately commit. But to get them to commit to you and not your competition, you need to prove to them that you have everything they need and more. You need to show them what’s in it for them if they do stick with you.
The best way to do this? Offer your customers rewards points just for signing up to your loyalty program. If they get instant rewards that they can apply to their current purchase, they’ll be more likely to go with you for the instant discount. Additionally, let them sign up to receive points even if they don’t make a purchase that same day. Giving customers a clear, instant benefit is one way to lock in that developing relationship.
Best Practice #2: Reward Your Engaged Customers
Thanks to social media, we can engage with our customers now more than ever. However, customers aren’t more likely to trust a business just because they’re active on social media. For this reason, customer reviews and testimonials are important—not only on your website, but also on social media.
For the customers who do share a review—whether good or bad—offer them rewards points for engaging with you and helping to give your company more exposure.
Best Practice #3: Make Your Loyalty Program a Part of The Company
Instead of viewing your loyalty program as a separate piece of your company, start viewing it as part of the culture. Don’t refer to your loyalty program as a generic loyalty program; instead, give it a unique name that helps consumers to feel respected and valued.
For example, Minnesota-based pet food supply company Chuck & Don’s offers customers a Friends of Chuck Program. It’s not just a generic points program—it’s a program that makes customers feel appreciated, like they really are friends of the company.
As another example, Sephora offers customers a chance to join their Very Important Beauty Insider (VIB) program. Both examples sound much more alluring than a simple points program, right? Both Chuck & Don’s and Sephora do an excellent job of making their clients feel valued and appreciated.
Best Practice #4: Monitor and Grow Your Business with Loyalty Programs
To know how successful (or unsuccessful) your loyalty program is, you need to monitor it. This includes monitoring the redemption rate. To calculate your program’s redemption rate, divide the total number of points spent by the consumer by the total number of points issued.
Monitoring redemption rates helps you to see how well your loyalty program is working, and if your rewards are being redeemed. If they are not being redeemed, it could be for a few different reasons:
- Your rewards are not relevant to the consumer
- Your rewards are not personalized
- Your rewards are too time-consuming or difficult to redeem
When you apply these best practices throughout 2017, you can help to grow your business with loyalty programs this year. Loyalty programs are meant to be fun and rewarding—and you can make them both of those things by practicing these four strategies.
Find Success in Your Loyalty Program
When you’re ready to get started, Mpell Promotions can help. We can assist you with customer loyalty, incentives, promotions, coupons, rebates, refunds, and more! Contact us today to learn more.