Reward your customers through a loyalty scheme focussed on engagement
Customer loyalty schemes have been around for years and are a powerful way to improve your customer-retention. It is estimated that on average it costs four to ten times more for customer acquisition than it does for retention, so initiatives that increase retention can significantly boost bottom-line profits. What do you do to build customer loyalty?
We live in a world of increasing choice. Customers have a plethora of options to choose from, and technology & automation make it easy for them to switch suppliers if they aren’t happy with the service... Especially if there is no incentive to stay loyal. Just keeping your customers satisfied isn’t enough, you need to recognise and reward them too.
Designing your loyalty scheme
Have a clear idea as to why you’re creating a loyalty scheme in the first instance. People of course like to feel they’re getting rewarded for giving you their business – but what other objectives do you have? Loyalty schemes come at a cost and take time to plan & implement. They definitely aren’t a substitute for your product or service.
Create a scheme with profitability in mind, but consider your other objectives, what are you looking to achieve? Repeat business? Referrals? Higher customer spend? To capture data and better understand your customers? The more we understand your objectives, the better we can work with you to achieve them.
Getting it right first time
A recent survey of UK consumers found that 54 per cent feel it takes too long to earn rewards in loyalty programmes, with 27 per cent having stopped using a loyalty scheme as a result. Highly personalised content will enhance the customer experience, such as testimonials, examples and educational content; creating a customer experience that goes beyond the direct offering.
The rewards you offer can vary enormously, ranging from offering discounts on business expenditure to rewarding staff with savings on the high street. No matter how established your business is, there is always an opportunity to improve engagement and increase loyalty. Your scheme needs to be simple to understand, and your rewards should be attractive and easily attainable.
Get to know your customers
The data you collect whilst running your loyalty programme can be hugely useful in understanding customer’s behaviour. Loyalty schemes can also help you to win back customers that may have left you or switched to your competitors. It is often much easier to win over an ex-customer than a cold prospect as you already know them, their purchase history, and how to reach them.