Build loyalty, communicate effectively and grow business
What is a ‘Loyalty Program’
A loyalty program is a rewards program offered by a company to customers who frequently make purchases. A loyalty program may give a customer advanced access to new products, special sales coupons or free merchandise. Customers typically register their personal information with the company and are given a unique identifier, such as a numerical ID or membership card, and use that identifier when making a purchase.
5 Customer Loyalty Program Ideas for Your Business
1) Use a simple point system.
This is the most common loyalty program methodology. Frequent customers earn points, which translate into some type of reward. Whether it’s a discount, a freebie, or special customer treatment, customers work toward a certain amount of points to redeem their reward.
2) Use a tier system to reward initial loyalty and encourage more purchases.
Finding a balance between attainable and desirable rewards is a challenge for most companies designing loyalty programs. One way to combat this is to implement a tiered system which rewards initial loyalty and encourages more purchases.
3) Charge an upfront fee for VIP benefits.
Loyalty programs are meant to break down barriers between customers and your business … so are we seriously telling you to charge them a fee? In some circumstances, a one-time (or annual) fee that lets customers bypass common purchase barriers is actually quite beneficial for both business and customer. By identifying the factors that may cause customers to leave, you can customize a fee-based loyalty program to address those specific obstacles.
4) Structure non-monetary programs around your customers’ values.
Truly understanding your customer means understanding their values and sense of worth. Depending on your industry, your customers may find more value in non-monetary or discounted rewards. While any company can offer promotional coupons and discount codes if they want to, businesses that can provide value to the customer in ways other than dollars and cents have a unique opportunity to connect with their audience.
5) Partner with another company to provide all-inclusive offers.
Strategic partnerships for customer loyalty (also known as coalition programs) can be super effective for retaining customers and growing your company. Which company would a good fit for a partnership? Again, it boils down to fully understanding your customers’ everyday lives and their purchase processes.