6 strategies for creating an effective loyalty program
It costs more to try to get new customers than to retain the customers you already have and nurture your relationship with them. This is one of several reasons why more and more companies are creating loyalty programs, which is a tool that helps you strengthen the loyalty of your existing customers. We give you six strategies that you can use to create a good loyalty program.
1. Start with a well-established plan for your loyalty program
There are many ways to set up a loyalty program, but instead of trying to find your own way, it’s better to choose a well-established strategy that has already proven successful for others. There are plenty of programs for a wide variety of businesses, e.g. companies that have many small customers, e-commerce businesses, and also for those who want to create a program to increase employee loyalty.
2. Be creative with the points in your loyalty program
Modern loyalty programs usually entail giving the program members reward points, meaning they earn points based on how much they buy or sell, for example. However, you can try to be more creative. For example, you can reward people who do a good job, promote your brand in an innovative way or maybe prove valuable in another way for your business. Try to reward actions that help you reach a goal, such as increased sales in a particular area.
3. Offer innovative rewards
In the same way that you can let your customers get points in creative ways, you can also offer innovative rewards. Try to relate it to events in the world or within your industry. The most common reward is that loyal customers receive a reduced price. You can certainly come up with other rewards that are more creative and appealing than this. During a really hot summer, one of the rewards can be a high-quality fan, for example. But you can go bigger than that with an organized trip, the sky’s the limit!
4. Use social media to create a strong community
A community can lead to fantastically loyal customers who not only contribute their loyalty but can also create value in many other ways, from product development to marketing and much more. Social media is an excellent tool for creating a bond between the company and the customers, provided it is used properly.
5. Organize events to show your customers appreciation
An event is a great way to reward loyal customers. There are many ways to do this. For example, you can invite customers for a free lecture or a corporate party. You can also organize more creative events. What about booking an entire movie theater auditorium for your customers and their families? A film event for 50 people, including snacks, can be around SEK 16,000. This is a far more memorable reward that both leads to increased loyalty and which also makes customers talk to others about the event. An event can also be something different, such as a dinner or watching a sports match.
6. Hire an agency if you need help creating a loyalty program
Creating a good loyalty program or a creative rewards program is usually quite complicated and above all, it takes a long time. A good advice is to simply make it as easy as possible for yourself. Hire a company that can take care of all this for you or that can tailor a program according to your particular business and needs. Loyalty programs are not a new feature, many companies have succeeded in their efforts. If you also want to succeed with your program, you may want to contact a specialized agency right from the start.