Your business is far from average and so are your customers. So what’s stopping them from joining your loyalty program? The strength of a great loyalty program is measured by its ability to influence and attract loyal customers. In fact, 79% of shoppers say loyalty programs make them more likely to continue doing business with brands.
The days of stamp cards and generic discounts are behind us. Customers want exciting experiences and rewards that matter to them, so it's important to put their needs and wants first. After all, a loyalty program is only as good as the customers who use it. So what exactly makes a good loyalty program and how do you know yours passes the test? Let’s explore the dos and don’ts of what customers want from your loyalty program!
Customers Want Program Clarity
Do keep it simple.
The mantra “keep it simple” can be applied to most things in life and loyalty is no exception. When it comes to starting your own program, it should be easily understandable. Save the long talk and keep your rewards scheme straight to the point! Before joining your program, customers want to know what they’re getting involved in. Be transparent about things like earning rewards (i.e. 2 points per dollar spent, 100 points is $10 off), redeeming rewards, and expired points.
Don’t be too demanding.
Keep your sign-up process quick and with minimal barriers to access. It's important to collect as much customer information as possible, but doing so, in the beginning, can overwhelm them and lead to abandoning your loyalty program altogether. Configure your initial sign-up settings to include your name, email address, and phone number. You can prompt customers to fill out more personal information such as birthdays and product preferences through email marketing later on.
Make your program attractive with tangible and clear rewards. Starbucks, for example, offers a free birthday drink after joining the rewards program. Upon joining, customers receive an email outlining earning and redemption rules, different program tiers, and more. By keeping it simple and offering program clarity, you empower customers to see the value in your loyalty program from the very start.
Customers Want Quick Rewards
Do personalize rewards.
Customers are looking for value-driven experiences while shopping and want good rewards that are made for them. Recognizing their shopping habits can help tailor their loyalty experience and keep them engaged with relevant offers and rewards. You wouldn’t offer free shipping to a customer who only shops in-store, or a sign-up discount to a 2-year loyalty member. Targeting and segmenting customers based on demographics, sales history, and milestones can help foster brand loyalty at each point in the customer lifecycle.
Image: Market Watch
Don’t make loyalty goals unattainable.
If your program goals are unattainable, your loyalty program won’t work. Customers don’t want to wait a whole year to receive one reward. Approximately 53% of loyalty program members in the U.S. abandoned a program because it took too long to meet the reward requirements. For loyalty programs using a point per dollar system, consider creating offers and promotions to boost customer engagement while they rack up points. This can be as simple as a BOGO special on the weekend, or bonus points on specific products. These types of rewards will boost excitement and create buzz about your loyalty program.
Tailoring rewards to your customer and making redemption goals easier, can grow your revenue quickly and improve retention rates by 60% or more. It’s a small step that makes a big impact!
Customers Want Recognition
Do recognize your VIPs.
Customers want to be recognized for their commitment to your brand and tier rewards programs are the ultimate solution. 57% of customers say they’re more likely to participate in a loyalty program that offers exclusive rewards and VIP status. With your own version of a VIP program, you can identify your high-value customers and convert them to strong brand advocates. As customers grow their status, they can unlock exclusive rewards through specific spending and engagement actions. For example, you could offer a unique discount code exclusive to platinum tier members, or special access to new products for loyalty members only. Tiers and VIP programs work exceptionally well for brands like Sephora and service businesses like Marriott.
Don’t generalize your customers.
Everyone wants to feel special and your loyalty program members are no exception. No two customers are exactly alike, and they shouldn't be rewarded the same way. Offering the right rewards based on where customers are in their journey can create longevity and turn one-time shoppers into long-term customers. If you don’t know what your customers want, ask them! Surveys are great for gaining important feedback that can help identify their needs and gauge overall satisfaction. Make use of your customer data to excite and delight your loyal customers in the most effective ways!
Customers Want to be in the Know
Do keep your brand top of mind.
Just like Marvin Gaye, customers want to know what’s going on. Keep your brand top of mind by sending reminder emails and notifications about relevant topics such as new promotions and their rewards progress. Think about your loyalty program like a weekly flyer to excite customers about new promotions and update their milestone progress. You want your business to be everywhere your customers are. Trigger automations to notify customers about how close they are to moving up a tier, birthday deals, unlocking new rewards, and upcoming promotions (i.e. a 20x the points event!)
Don’t assume all your customers want emails.
Marketing is not one size fits all solution and there are many methods to maximize a campaign's ROI. Taking an omnichannel approach to your marketing can lead to a 90% higher customer retention rate, and higher engagement and purchase rates. Consider diversifying your marketing channels with SMS and push notifications. And remember what’s old, always becomes new again. Today's customers respond well to traditional printed marketing materials which are brilliant for brick and mortar stores (think stickers, flyers, and cutouts). Understanding how your customers connect to your brand is an integral part of successful marketing. Are they shopping online? In-store? Through social media or your mobile app? Knowing this will help you make the right decisions when it comes to communication about your loyalty rewards program.
And there you have it! The above tips can be used whether you’re just starting out with loyalty, or want to improve your current program. Customers appreciate and engage best with a rewards program that is true to its name. They want a loyalty rewards program that is easy to use, clear to follow, attainable, and personal to their shopping needs. By focusing on what customers want and understanding what drives them to purchase, you can build a loyalty program that will exceed their expectations for years to come!
Thinking about starting a loyalty program? Take your customer experience from good to great and with an all-in-one loyalty rewards solution to attract, keep, connect and grow your business. Book a demo with Kangaroo Rewards to get started today. It’s never been easier to make shopping more rewarding!
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