What makes a successful loyalty program?
We at Reward cards App, love loyalty cards so much so that we made an entire app that lets you store your loyalty cards and track your loyalty points. So it is of no surprise that we keep track of the huge list of loyalty cards that flood the market today. With time we have seen many loyalty schemes fail where others have a sort of cult following. This leads us to analyze the reasons for the success of a loyalty scheme and here are the three main factors that seem to determine the success of a loyalty program.
Generous reward points:
With a recent study showing that around 53% of loyalty card users get rid of at least one loyalty card per year, it is becoming quite a challenge to retain your loyal customer. This can be resolved by understanding why the customer signed up for the store card in the first place. Understanding your customer’s values will give you deep insights on how you can retain their loyalty. Design a loyalty program that pays the customer back in the fashion that they expect to be paid. Another study shows that the main reason customers( around 57%) sign up for loyalty cards is to save money. So if your loyalty program does not help the customer save money then they are very likely to drop out of your loyalty scheme.
So pay your customers generous rewards – give them exclusive discounts for their most used products, schedule pre-launches for loyalty card holders, The monetary reward that you provide should not only enhance the value of your brand, it must also provide rewards which are relevant to the customer.
Has a digital presence:
In this day and age, having a digital presence is of utmost importance for a brand’s survival. Customers are more likely to engage in loyalty programs where the brand has a sound presence on major social platforms like Instagram and Facebook. This not only builds trust among the customers, but they also have a sense of belonging to a strong community.
If your business has an app, make it easy to use and navigate. Push notifications on products that your customer is interested in. Keep them updated on the latest sales or discounts on items in their wishlist. These tips ensure that your client engages with your brand regularly, thus developing an emotional connection with it. It is this emotional connection that will ensure that they enroll in your loyalty programs and make it a success.
If you do not have an app that can store your loyalty cards, you can always ask your customers to download Reward cards app (available for free on Apple store and Android) to scan their loyalty card and track their reward points.
Makes the customer feel important:
Once you figure out what motivates your customer’s buying decisions, it is time to think of designing a loyalty scheme that is in line with their shopping drive. Are they new parents who seem to stock up on diapers? Can you give them a better deal on that based on their loyalty points? Is it their birthday month? Offer them some extra discounts.
Some brands like TOMs shoes, not only reward their customers with loyalty points, they bring in a social aspect to it. They donate a shoe every time you buy a shoe. They pay for eye checkup and spectacles when you get a pair of glasses from them. These non-monetary benefits show their social commitment which gives their customer a feeling of being a part of the social change. Everyone benefits in such a loyalty scheme which aligns with both the customer and company values.
Another brand that offers such non-monetary benefits is Debenhams. They offer a free facial or eyebrow waxing on their customer’s birthday. Now, who wouldn’t want to be loyal to a brand like that?
Download Reward Cards App now to enjoy the loyalty programs from your favorite brand.