Repost: How To Create A Loyalty Program That Strengthens Customer Relationships
By Jared Atchison, the co-founder of WPForms, a drag-and-drop form builder for WordPress that's being used on over 400,000 websites
When you run a business, the loyalty of your customers is essential. For growth to happen, you need to build solid customer relationships that benefit both parties. A great way to create this mutually beneficial situation is to introduce a loyalty program.
Loyalty programs, or rewards programs, are created by businesses to reward repeat customers. Using mobile apps, brands can develop ways for consumers to earn exclusive deals and discounts.
A good loyalty program can improve user engagement, build brand recognition and increase sales. According to a Nielsen study, 84% of customers said they were more likely to engage with a company that offers a loyalty program. But it only works if you know how to cater to your audience and give them what they want.
If you want to create a rewards program that resonates with your customers, here are three tips to help you get started.
1. Choose your incentive.
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You need to decide how your program will reward customers once they take action. Otherwise, being in your program is pointless. Creating an incentive encourages consumers to join and participate, which boosts your overall conversion rate.
So, give your target market a compelling reason to sign up. What rewards will they receive when they join? If they spend money through the program, what do they get in return?
Starbucks uses a point system so that anytime customers make a purchase, they rack up points. When they collect enough points, they can choose between free drinks, bakery items, discounts and more.
You can improve any area of your marketing by creating an incentive tied to it. For example, if your goal is to increase mobile app activity, then hosting your rewards program through the app will help you achieve that specific goal. Consider the results you want to see so you know what incentives to use to get you there.
2. Personalize your rewards.
When people use your rewards program, it gives you user data you otherwise wouldn’t have access to. You can use this to your advantage by adding personalization and letting consumers know that you understand their needs.
Personalization is a great marketing strategy used to attract loyal customers. Creating targeted offers, deals and messages for different users shows that your brand can deliver in ways that your competition can’t. Catering to their specific needs results in higher engagement and return visits.
Make sure you offer a variety of rewards so you can cater to individual consumer priorities. Remember, each customer wants something different out of your rewards program, so offering various options helps keep them around.
Sephora’s loyalty program goes above and beyond to tend to customer needs. It created a three-level reward system for users of all budgets. You can join for free, and if you rack up points, you enter a higher level for better rewards. Building a program that works for everyone strengthens consumer loyalty and makes them want to return.
3. Give back.
With so many options to choose from, especially in e-commerce, you need to stand out among the competition. More importantly, you need to give your audience a clear reason to engage and spend with you.
Today’s consumers want to invest in brands that give back to the community or donate to crucial causes. They’re more willing to spend money when they know it’s going toward social, political, environmental or economic change.
Your rewards program can effectively increase sales and ROI for your business by participating in a good cause. But beyond bringing in more money, it’s also the right thing to do.
Toms shoe company created a Passport Rewards program. For every point earned through customer purchases, Toms donated to organizations that help communities combat racial injustice. The loyalty program excelled in growth, but it also helped thousands of people in need.
Over to you.
Creating a successful loyalty program doesn’t have to be difficult. When you understand your customers’ needs and how they spend their money, you can build a program that encourages action and boosts conversions. How will you create a successful rewards program?