Know more about Loyalty Rewards Program and how to successfully promote it.
It costs a lot less to keep existing customers than to earn new ones. One of the best ways to keep customers coming back for more is by establishing an effective loyalty or rewards program in your retail store. The most successful programs are carefully developed to appeal to a company’s best customers, so it’s crucial to put plenty of thought and planning into the process.
Companies throughout the nation are now utilizing loyalty programs more often than ever before. These organizations understand the importance of retaining existing customers and choose to implement a system directed specifically at building customer loyalty.
What exactly is a loyalty program?
A loyalty program is a marketing system instituted by a business that rewards purchasing behavior, thus increasing the customer’s urge to stay loyal to the company. A loyalty program may offer convenience, store credit, prizes, or any other benefit that would entice the loyalty of a customer. It also make use of the psychological principles of reciprocity, commitment and loss aversion to increase the likelihood of customer loyalty.
Loyalty rewards programs can significantly increase customer engagement and retention. However, to make a loyalty program successful, you must promote it aggressively and get your users to adopt it and engage with it. The objectives for a good loyalty program promotion campaign are twofold: creating awareness about the program for new customers; and engaging already-enrolled customers through targeted campaigns.
Of course, by instituting a loyalty program, you not only improve customer appreciation of your business, but you also increase the chances that existing clients will share this joy with those close to them. The more a customer feels appreciated by a business, the more he or she is likely to support that company and recommend it to others.
One of the most beneficial parts of loyalty rewards systems, for both the customers and the business owners, is that, depending on the tactics, the rewards can be applied to purchases made online, in person, or both. This provides you with the chance to offer a robust set of rewards for a broader array of clients.
If you have noticed that most of your sales are to those who shop on the Internet, enhance your online rewards system; conversely, if most of your business is conducted in person, an in-store program may be best suited for you. Here is a proven 5 places you need to be promoting a loyalty program:
On Your Homepage.
The highest exposure area on your site is obviously the homepage. This is the best spot to be promoting a loyalty program. Letting shoppers know of your program the instant they enter your site is very beneficial.
This gives them an immediate reason to choose you over another competitor, or even Amazon. If they can earn points for future purchases with you and can’t with your competitor, you have given them a strong reason to choose you instead of them.
A great way to promote on your homepage is to include a clear call to action in your homepage navigation bar. When you let potential customers see you have a loyalty program on the homepage it becomes a marketing tool above and beyond its powers as a retention tool.
In the Checkout Process
Another place you need to be promoting a loyalty program is during the checkout process. The purpose of promoting on this page is to catch anyone who has gotten through to purchase without becoming aware of the program. An effective way to promote on the checkout page is to show customers what they will miss if they don’t register for the program.
Over Social Media.
One of the best ways to increase your program’s exposure is to leverage social media. You can promote your loyalty program over social media in two ways. You can use the program to encourage customers to share products over social media. This can be set up as a feature of your program that also has marketing value; a customer earns points for simply sharing through their social channels.
The second way to promote over social media is to get customers to share that they have joined the program. This increases the exposure of your loyalty program and not just the products you sell. This feature can be worked into a loyalty program to increase both exposure and customer engagement.
When you use social media you are letting your customers promote your loyalty program for you. You just need to provide the incentive (points) to get them to do so. Every customer who shares over social media is exposing your program to their entire social network.
A Dedicated Explainer Page
It is not enough to just show the existence of your program. Customers want to know how your program works. They will want to know things like: how many points do I earn per dollar spent, how much are my points worth, how can I earn points. All of these are best answered by including a loyalty explainer page on your site.
A loyalty explainer page is a visual representation of all the ways a customer can interact with your program. This is vital when promoting a loyalty program because it tells a potential customer the exact benefits they will receive.
A loyalty program is effective only if your customers and future shoppers are aware of it. You need to promote a loyalty program across your site to increase visibility and enrolment.
There is no finish line when it comes to loyalty programs. The most successful and useful programs are continually monitored and improved over time. As you gain new information about your customers through their activities with the program, you’ll be able to develop new ways to engage with them to encourage more profitable transactions.
It’s no secret anymore that loyalty programs are effective marketing tools. They increase growth, help retain customers, and improve your brand’s reputation. And if you haven’t yet weaved a loyalty program into your marketing strategy, you may be missing out on one of the best and easiest tools available for the success of your business.