Have you ever heard of those cool reward cards or apps that give you points or discounts every time you shop at your favorite stores? That’s what a loyalty program is all about.
These programs hook customers up with goodies, discounts, and perks, all to keep them coming back for more. The more they shop and spend, the more awesome stuff they get. It’s a win-win for you and your customers!
The benefits of loyalty programs for retailers and customers are endless. Loyalty programs can be of different types. Let’s have a look at the three common ones:
1) Points-based loyalty programs
With points-based programs, customers get rewards not just by swiping their card at the cashier. They can share on social, drop a review, and celebrate your birthday and it all adds up to freebies, cashback, and cool perks!
Starbucks Rewards is an example of points-based customer loyalty programs. Each customer receives stars/points when they buy coffee with the app. Redeeming the stars can give birthday bonuses, special service, and free food and drinks.
2) Tiered loyalty programs
This type lets you step into the VIP zone. Your membership rank depends on how much you shop or engage. The higher your tier, the more exclusive goodies you catch. It’s like a rewards ladder, and you climb your way to better perks.
One of the most suitable tiered loyalty program examples is Famous Footwear’s ‘Famously You‘ loyalty program. It offers instant cashback rewards, free shipping, special coupons, and birthday gifts. If a customer spends over $200 a year, they can level up to the Superstar tier for even more and bigger rewards.
3) Paid loyalty programs
If you want instant and ongoing VIP treatment, paid loyalty programs are for you! With a small fee, you can unlock a treasure trove of benefits. It’s like joining an exclusive club with all the cool stuff. Paid loyalty programs can assist you in offsetting part of your marketing or loyalty marketing expenses. It might also serve as an additional revenue stream for your company.
Amazon Prime offers paid loyalty programs where customers have to shell out a monthly or annual fee. Perks include seasonal discounts, access to the Amazon Prime streaming service and much more. Keep in mind, though, the fees and perks can vary depending on the country.
How to build a loyalty program
Loyalty programs have become vital tools, offering retailers a strategic edge. Customer loyalty programs for small business can help enable lasting connections, drive repeat business and create a devoted customer base.
1) Research to find ideal customers
Find out what your loyal customers want and need by doing surveys and interviews. Also, gather info on the products they buy, when they joined your brand, how satisfied they are, and how much money they bring to your business. This way, you can create a loyalty program that suits them.
2) Set goals
Setting goals is extremely important when you’re starting a loyalty program for your store. It means talking with your team to figure out what you want to accomplish with the program.
Make sure that your goals are clear and attainable. For example, you could establish a goal of bringing in 20 new customers and closing 100 deals in a month.
3) Decide a budget
Figure out how much money you can spend on making your loyalty program successful. The budget you decide will impact the kind of program and rewards you can offer to your customers. So, it’s essential to plan how much you can afford for your team to run successful loyalty programs.
4) Select customers
Now it’s time to pick the right people who will enjoy the perks of your program. Look for customers who make big purchases, are likely to buy more items, contribute significantly to your brand’s income, pay promptly, and are likely to stick around as loyal customers in the future. Once you’ve chosen these customers, you have a list of clients to appreciate and reward.
5) Offer a variety of rewards
Now, think about different ways to reward your loyal customers. Consider offering them a mix of benefits that they would find appealing. This could be discounts on future purchases, free items, or exclusive access to special events or sales.
You can make your loyalty program more interesting and valuable for different types of customers. This way, whether someone prefers discounts or exclusive perks, they’ll feel recognized and motivated to stay loyal to your store.
For example, a clothing store could host a VIP shopping night reserved only for loyal customers. During this event, loyal customers can have the store to themselves, enjoy refreshments, and get a first look at new collections. To make it even better, the store can offer exclusive discounts or even provide a complimentary item with purchases made during the event.
6) Give rewards for a variety of customer actions
Offer rewards for other actions as well other than making purchases. This could be watching videos about your products, using your mobile app, sharing things from your store on social media, or subscribing to your blog.
Even if they don’t buy something right away, these actions still mean they’re interested. So, give them rewards for these activities to say thank you for being involved with your brand.
7) Give customers various ways to sign up
Encourage customers to sign up for your loyalty program in different easy ways. After starting the program, let people know about its benefits. For instance, if they buy something online, show them how many points they could get with their purchase. This is similar to when you’re on a plane, and the crew tells you about earning miles if you sign up for the airline’s credit card.
You can also use social media or on-site notifications to tell customers about the program when they earn points. Making sign-up easy and promoting the perks helps more customers join and enjoy the benefits.
For example, Sephora allows customers to easily sign up for their loyalty program both in-store and online. Once enrolled, Beauty Insiders receive points for every purchase that they can redeem for various beauty products. Sephora keeps members engaged by offering exclusive access to new product launches, birthday gifts, and special promotions. It also regularly communicates with Beauty Insiders through email and the mobile app, notifying them of double point events, limited-time offers, and other perks.
How to promote your loyalty program
Promoting your loyalty program is vital to attract participants and maximize its effectiveness. Here are some effective ways to promote your loyalty program:
1) In-store signage
In-store signage is like putting up big signs and posters inside your physical store to tell customers about your special loyalty program. It’s an excellent way of catching the attention of people who walk into your store and letting them know about the awesome benefits they can get by joining your loyalty program.
You can display signs that say something like, “Hey, be a part of our loyalty club and get cool rewards!” It’s like an invitation to something appealing that nobody would want to miss out on!
2) Social media posts
Share pictures or videos on platforms like Instagram or Facebook to let everyone know how awesome it is to be part of your loyalty club. For instance, you might post a happy customer holding their rewards and invite others to join in with a fun caption like, “Become part of our loyalty family for amazing perks!”.
It’s a way to show off the cool things people get by being part of your special group, and it helps spread the word to more friends on the internet. You can create social media posts for your loyalty programs marketing using online graphic design tools. PosterMyWall offers a huge variety of retail social media post templates that can help you save a lot of time! You can edit and customize the templates with a simple drag-and-drop editor.Â
3) Influencer collaborations
Influencer marketing can be super helpful to tell more people about your loyalty program. When popular influencers talk about your program to their followers, it makes people curious and excited to join.Â
Imagine a famous person saying, “Hey, I love the rewards from this loyalty program, and you should check it out too!” This kind of shout-out can reach many new customers, making your loyalty program more popular and attracting more people to sign up for the special perks and rewards you’re offering.
4) Email marketing
When it comes to loyalty programs marketing, emails can be super helpful! You can tell your customers all about the cool perks they get by joining, like discounts, exclusive offers, or special rewards. Sending regular emails keeps your loyalty program fresh in their minds and makes it easy for them to sign up.
You can also segment your audience and send them tailored messages for more personalized communication. For example, a beauty brand could send tailored messages to customers who frequently purchase skincare products, emphasizing exclusive offers on new skincare arrivals. They can create different segments for customers who purchase their other products like makeup or hair essentials.
PosterMyWall is an all-in-one online tool that can help you create email campaigns using its extensive library of retail email templates. You can also send out email campaigns directly from the platform, making the entire process even more convenient.
5) Referral programs
Each time an existing member refers to a friend who joins, both the referrer and the new member get rewarded, creating a win-win situation. This referral marketing strategy can be super effective because it’s like having a bunch of happy customers becoming advocates and bringing in even more people to enjoy the benefits of your loyalty program.
Final thoughts
In conclusion, a loyalty program is a great way to retain customers as well as gain new customers. However, a loyalty program will be successful only if it easily communicates the enticing perks it offers to customers. Effective loyalty programs marketing can help you convey the value to a broader audience, making the program not only accessible but also irresistibly appealing.
Hira is a Content Writer at PosterMyWall. Hira enjoys writing, so she looks forward to exploring different niches. When she’s not writing, she’s either on a trip making new friends, jotting down her thoughts, or just spending quality time with her two cats, Rio and Dusty!
