A loyalty program is used in many businesses to show customer appreciation, and encourage them to visit more frequently, or try something new. These programs reward clients by giving them a gift, a special deal or discount. A rewards card keeps track of the clients activity and once a goal is reached that client receives her reward
What is the advantage in launching a loyalty program for your business? It allows you to entice new and existing customers, while learning more about them. Each time your customer chooses you, your goal should be to examine their habits and needs. The more you know about each client, the easier it will be to satisfy them, and provide a loyalty program that suites them.
Manage your Data Base and retain your clients
When repeat customers buy more often, it gives you the opportunity to manage your customer data base. The data base you maintain should mention your individual clients interests and needs, not just their contact information. This way you can improve your services, products and marketing efforts based on them, rather than playing a guessing game.
If executed strategically, your loyalty program could generate up to 20% of your companies profit. So utilize these marketing ideas & tactics that excite consumers, engage the idling customer, and urges them to stay with your brand. All these things will also kickstart the word of mouth process, as a result, bring in new clients.
Goal orientated people
To begin your loyalty program you must get your client to set a goal. Say you own a tanning salon. Your patrons love getting that free tan, so persuade them to reach their FREE tan goal with a stamp card (paper or electronic). Each tan will reward them with a stamp, after 8 they get that gift of the perfect glow. Humans love free stuff and respond well to a ‘call to action’, but most of all they need to feel appreciated.
A loyalty Program that uses Artificial Advancement
What drives people is a goal. Unfortunately getting started can be the hard part. Stamp the first box or two for your client as a gift to them. It’ll make them feel that the process has begun and now all they have to do is safely tan 7 or 8 more times to get that freebie. Psychologically this is a great marketing tactic for your loyalty program. The closer a person gets to completing a goal, the harder they try and more motivated they become. This is referred to as “artificial advancement”.
To step it up, give your clients who purchase the Gold package a free stamp, where as your Platinum clients receive two. This can help you up sell when delivering the incentive, and it can also make the people who are spending more, feel like they are receiving a special perk.
Take your loyalty program to the next level. Appreciating your loyal customer has benefits beyond frequency of purchases, it builds rapport and retains the relationship.
If you enjoyed this article, read our blog about customer service.
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