Magnitude is a full service digital marketing agency with experience in public relations and new media. We work with select partners to grow online sales channels and consult with hundreds of Tucson based brands on customer loyalty programs, email marketing, and content creation.
What are Customer Loyalty Programs?
A customer loyalty program is a brand’s way of interacting with its customers. While a company provides discounts, special offers, promos, and exclusive products, customers agree to do business with them again in the future. However, merely launching new programs based on discounts is not going to work. In fact, statistics show that “77% of these transaction-based programs fail in the first two years.” “77% of these transaction-based programs fail in the first 2 years.”
Then, what would be good loyalty programs to make your customers come back to your store? For example, gaining points for spending and using them later to make a purchase works pretty well. Moreover, paid memberships with a free trial, such as on sites like Netflix or Amazon, are very popular in online commerce. So finally, rewarding your customers with coupons, testers or free gifts based on their purchase will make them want to come back too.
A few tips on bringing to life your customer loyalty programs
All the examples of loyalty programs from above work pretty well with any physical or online retailer. However, even when you know about these programs, how do you apply them to your business? Here are a few helpful tips to guide you through implementing your loyalty programs.
Set your reward
The goal of your loyalty program has to align with what your customer needs or wants. As such, once your customer takes part in your program, they need to have a reward to look forward to. For example, you can offer a freebie for buying $20 worth of products, or you can offer a 15% discount on their purchase if they subscribe to your email list. Ultimately, any loyalty program has to benefit both your company and your customer.
It is easier and cheaper for your business to keep your existing customers instead of looking for new ones. However, how do you make sure they stay interested in your loyalty program? You offered an initial reward, but what comes next for your loyal buyers? A logical solution would be to provide more and bigger bonuses for making more purchases, but you can also reward your customers for referrals, as this would give them a new incentive and attract a new audience for your business.
While some of your customers might be excited just because you reward them, others will want to know why you are doing that. For example, if you offer 15% off for creating an account, you can explain that as a little boost to get them started. Letting your customers know why you are rewarding them is another way to connect with your audience.
Why should you choose our services for your next project?
Magnitude Means Business Growth. We’re business professionals that own a portfolio of our own companies. Our business development team led by Tony Ford can help identify weak areas at the root of your customer’s experience and implement customer loyalty programs. Contact us today and let’s talk about how we can help your company grow.
If you are looking for more info about customer loyalty programs, check out these articles.
Subscribe to our newsletter and follow us on [social media].