Customer loyalty is something that works as an effective marketing strategy for the company. It can frequently get the attention of the customers and encourage them to buy your products. By reward programs, you can increase customer loyalty and ensure continuous growth to the business. The sole purpose of this marketing strategy is to get the response of loyal customers.
In the retailers market, loyalty programs have proven themselves as the best marketing strategy for increasing productivity, leads, and revenue. According to the report, 84% of consumers love to stick with the brands that offer loyalty programs. There is no doubt that rewards programs can change the shopping behavior of consumers. However, customer loyalty programs are nothing new in the market, but in today’s competitive world, it has gained huge acceptance. It has been found that small businesses who use customer loyalty programs in their promotions will get more impressive leads than the business which don’t use such type of effective marketing strategy.
There are different types of loyalty programs, and in this post, we are going to tell you the popular ones.
- The Point Program
The point programs encourage consumers to spend more to receive more points. It is one of the cunning and easiest marketing strategies to increase the sale of the business. When people know the brand is offering point programs in the return of purchased products, they purchase expensive products for the sake of earning points. With the points, they purchase other products. Indirectly, this reward program is offering double sale benefits. So, if you are running a business and want to increase the sale of a particular product, you can offer a point program as a reward program to your customers. A lot of e-commerce sites are struggling to get the attention of the audience. For them, a point program has proven as the survival stick in the market.
- Spend Program
In the spending program, customers get loyalty credits for the amount they spend at the business. For businesses, this program is very easy to apply and maintain. With that reward program, you can also reduce the churn rate and increase the transaction amount.
- The Paid Program
The paid program is a subscription program that allows customers to pay some fee to join the VIP program and get the benefits of it. Like customers can easily book the products on sale, or they don’t need to give delivery charges, and most importantly, they will get their products on time. For this type of loyalty program, you need to research in the market, find the existing and frequent buyers. After all, new customers are less willing to join the paid programs.
- The Charity Program
There are so many brands across the world that have incorporated charity programs in their campaigns. Because customers also think emotionally. When they find a brand that gives some share of their purchasing amount in the welfare of the animals and needy people, they are likely to purchase from the brand over other brands. There are so many companies across the world who have nailed this approach by making human and animal welfare part of their loyalty program.
- Tiered Program
One of the significant ways to find the right balance between desirable programs and attentive programs is a tiered program. This program gives some points to the customers and encourages them to purchase more. The more points they receive, the higher loyalty they will reach.
Things to Keep in Mind While Creating Customer Loyalty Programs
There is four basic research you need to consider while creating customer loyalty programs:
Step 1: Research
The very first thing you need to consider is researching in the market. Like what your customers like, how much they are willing to pay, what motivates them, and their demographic.
Step 2: Make A Plan
When you completely understand the behavior and type of your customers, the second thing you need to do is create a strategic plan. In this plan, you need to add key resources, aim, measurable goals, and key performance indicators. Once you have set up, you need to decide which type of rewards program increases your sale and business benefits.
Step 3: Build Your Program
After creating a strategic plan for your loyalty program, you need to structure by using information. Allow your customers to take the benefits of your rewards program on the first sign-up, birthdays, referrals, social engagement, shopping on specific days, and so forth.
We hope this comprehensive guide on the rewards program helps you a lot. If you are looking for a company that helps you set up the reward program, feel free to do your research online. Edenred SG is the best company that has helped many well-established and small companies in increasing revenue.