The Do’s & Don’ts Of Running A Customer Loyalty Program As A Retailer
When it comes to retailers, the competition is fierce. So how does a business stand out from the crowd? If Store A sells the same product as Store B, then how do you choose one store over the other? Store A must offer something above and beyond the regular product. The key to building loyalty is through incentives. Building a long-lasting business relationship in 2016 has never been more important, but you have to be careful–customers today are business-savvy and informed. Check out our list below to ensure that you have a strong customer loyalty program and a thriving and happy consumer base for your retail business.
DO: Provide Personalized Offers
Knowing your customers is the first step towards having a strong loyalty program. Loyalty cards allow your business to collect and analyze data about who your customers are, and what your customers like. Purchase history will allow you to properly optimize offers to best suit the needs of your customers, and is a huge step towards making the customer feel that your business cares about them as an individual.
DON’T: Don’t Only Reward Customers For Spending Money
While the number one goal of any retail loyalty program is to get your customers to spend more money, don’t lose sight of your customers’ happiness in your pursuit of profit. There are several exciting and engaging ways to motivate your customer base without making them purchase items. Reward consumers with loyalty points for actions that benefit your business, such as sharing a post on social media, referring new customers, or writing a review. These alternatives not only serve as great–and cost-effective–advertising, they are also innovative ways of thanking your customers for their loyalty.
DO: Offer Compelling Rewards
Make sure that your loyalty program actually rewards loyal customers. Nothing can turn a potential long-time customer away like a lame loyalty rewards program! A point-based system like TruCash Points is a great way to incentivize your customers. In this instance, a customer earns points when they use a card to make purchases, and these points can then be converted to cash or used to make other purchases. In a sense, this loyalty card pays you to use it!
DON’T: Make It Too Hard To Earn The Reward
While a host of awesome prizes/incentives can be enticing, if a customer can’t realistically attain these items they are going to be unhappy, resulting in a loss of engagement and a lack of repeat business. As well, no one wants to take part in a rewards program that is too time-consuming or offers lackluster prizes.
DO: Get With The Times And The Technology
Customers today are bombarded by loyalty programs at nearly every single store they shop at. Separate your business from the pack–and entice millennials–by taking your loyalty program into the 21st century. Offer a mobile app or online website that links to your loyalty card and allow your customers to easily check out information, points/cash total, make transactions, send money, and more. Keep things simple, streamlined, and seamless. Millennials are incredibly interested in loyalty programs, but not if it’s more trouble than it’s worth. The average person uses their phone over 150 per day–use this to your advantage!
DON’T: Be Afraid To Innovate And Switch Things Up
No rewards program is perfect; consider your loyalty plan a constantly-evolving work-in-progress. As a retail business, the point of the program is to be profitable and keep your customers happy. However, your customers’ needs and tastes will change over time, so it’s important to review customer data to ensure that your loyalty program keeps them coming back.
DO: Listen To Your Customers
This may sound like a no-brainer, but one of the biggest complaints from customers when it comes to loyalty programs is that the retail business isn’t offering them anything they want. Ask your customers questions via social media, email surveys, or in-app questionnaires to find out what they value the most. Is the loyalty program too complicated? Are the rewards too hard to earn? Does the retail business contact you too often with offers you don’t want? These are all important questions that need answering to ensure that your business is maintaining a positive relationship with your customer base.
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