Tips for creating or having a successful loyalty program
Loyalty programs are widely used by businesses as a means to encourage customers to repeatedly patronize their business.
Businesses offer discounts or rewards to customers who patronize them after they have accrued sufficient points. Loyal
customers become business builders - they buy more and help to bring in new customers. When planned and designed
properly, loyalty programs can encourage relatively new customers to behave like a company’s longest and profitable
customers. To create or have a successful loyalty program, businesses need to consider the following:
- A loyalty program should not be treated as a one-off or short-term promotional discount. Use offers for that.
- Think of your customers. Is the reward relevant to them? Can you offer them a choice of reward options? Can they get better alternatives elsewhere?
- Continuously educate your customers about your loyalty program. This helps to keep them motivated to earn the rewards.
- Reward customers in proportion to the value they add to your business.
- How long will it take for customers to accrue sufficient points? Customers are not likely to stick around for a reward that takes years to redeem.
- Can the effect of your loyalty program on your business be measured or quantified?
- The activities you reward customers for should be linked to the desired customer behaviours. Is the desired behaviour to encourage increased spending, to buy only a particular item, or to perform a certain action?
- The reward you give to customers should be linked to the desired customer behaviours. Does it encourage a behaviour where customers redeem their rewards and could defect to another business?
Businesses need to view their loyalty programs as a means to encourage the desired customer behaviours. However, it may be challenging to have a successful loyalty program without the right technology solution. For example, a business that wants to encourage customers to spend more by giving them three points for every one dollar spent will soon find out that this cannot be achieved with a loyalty card that is stamped on every transaction. Offerwhere can help businesses to run a successful loyalty program at a fraction of the cost that will otherwise be required to build and maintain one in-house. Through Offerwhere, businesses can:
- Define one or more activities that they want to reward customers for.
- Define the number of points that they want to give to customers for each activity.
- Encourage the desired customer behaviours.
- Measure the effect of their loyalty programs.
- Gain better insight into customers.
- Run their loyalty programs online and in-store without having to invest in new equipment.
Through the Offerwhere Business app (available on the App Store and on Google Play), businesses can run their loyalty programs in-store or in-person. The Offerwhere Business app allows businesses to scan the customers’ Offerwhere PIN and send us their transactions. The Offerwhere PIN is a unique eight-character long number issued to every user on Offerwhere, and can also be used online. The Offerwhere PIN is presented as a QR Code on the Offerwhere app (available on the App Store and on Google Play).