Strengthen customer loyalty with rewards programs
A customer rewards program can strengthen customer loyalty and add value to your brand. Rewards programs include things like a points system, discount cards, free shipping, special one-time offers, and VIP cards.
Take the first steps to develop your program:
- Research your competitors. Create a program that either mirrors theirs or distinguish yours by offering something completely different.
- Collect detailed information from your most loyal customers to analyze spending habits. This will help you select the appropriate type of incentive or reward and the right amount of points or purchases to get to this incentive.
- Establish an open channel to communicate with your valued customers. Think social media or email to keep your customers informed on the latest deals.
- Set a clear goal for your customers to work toward; give them a finish line to strive for. There should be incentive for advancement.
Make your rewards program more effective:
- Use a rewards program with a tier system. Offer small rewards as a base offering, and then increase rewards points as time progresses to encourage repeat customers and repeat purchases.
- Your employees can help with exposure; they can promote your rewards programs when interacting with customers. Your customers should be aware of and understand your programs completely; this helps encourage referrals. Consider offering incentives to customers who get others to join your rewards program.
- Partner with another business to provide all-inclusive offers. Strategic partnerships can draw in more customers and give you another way to publicize your loyalty program.
If you sell goods or services online, web analytics can help you measure the effectiveness of your loyalty programs. Tools and software exist to help you also measure metrics such as a customer retention rate to see how long customers stay with you. With a well-thought-out loyalty program, these numbers should rise whether you sell in stores or online.
A customer loyalty program can help retain existing customers and attract new ones with special offers. Loyal customers tend to be more profitable customers. For more information, check out our sales and customer relationship management section.