What is the purpose of a loyalty program?
As its name suggests, a loyalty program is used by businesses to strengthen customer loyalty. These techniques allow your clients to get rewards when purchasing at your business. They also allow you to create a link between your brand and them. If you want to get new customers and keep them, a loyalty program will be very useful!
How to create a loyalty program
There are many steps to follow to create a good loyalty program. The first step is easy: you should know about your clients and, more importantly, their purchasing behavior. It will allow you to offer adapted rewards to your customers.
Then, it is best if you choose a primary goal. Do you want to launch a loyalty program to increase purchasing frequency or the number of visits? Do you want to increase engagement or promote some products? Once you have defined your goals, choosing the loyalty program that best meets your needs will be simpler.
You also need to consider how you will communicate your offers and how people can subscribe to your program. You need to choose different channels to reach your clients. Classic tools like SMS, emails, or physical supports like loyalty cards or gifts. If you prefer technological options, you can have an app with push notifications or provide a chatbox. People often close notifications and chatboxes, but you might be able to provide some information, nevertheless.
Here is another tip: loyalty programs often offer discounts to make people purchase even more. Do not hesitate to stand out by giving the saved amount to non-profit organizations.
Finally, monitor your results closely. Check the number of subscriptions, repurchases, and sales reports. If you want to improve your program, you need to have access to statistics.
The different loyalty programs
There are many types of loyalty programs, and here are some of them.
The most used program is undoubtedly the points card. It is well-known and simple; therefore, people like it. Every time you buy something, you earn points. After a given number of points, you get a reward.
Some businesses also offer a paid membership. It is less common but can be attractive if you provide great rewards. You can organize private events or offer exclusive content. This program can require some money to implement because even if you get money from memberships, you need to attract clients first!
The percentage system is also an easier way to implement a loyalty program. It gives a discount percentage on the next purchase.
A loyalty program can also exist through client engagement. It means that they earn points by accomplishing some tasks like filling up the profile or purchasing online or at your shop. They could then have access to some special benefits.
What are the benefits of a loyalty program?
Let us now see why you should use a loyalty program. As we mentioned above, it is essential to have a primary objective. Whatever your goal, it will indeed have different benefits.
One of these benefits is that a loyalty program increases notoriety and reinforces your brand image. It surely helps customer loyalty too. Nevertheless, do not spam them with too many emails or discount offers.
A loyalty program also allows you to maintain business revenues since your clients will return to buy your products. Your loyal customers also tend to increase the average amount spent.
And as we mentioned before, a loyalty program allows you to know your customers well and meet their needs better.
How to create a loyalty card
The loyalty card with points remains one of the most used and simple loyalty programs to implement. Therefore, we will explain how to create a loyalty card. Like a business card, a loyalty card must follow some rules. Indeed, we need to find the address of your business, your email or phone number, your logo, and a short description of the program.
Generally, a loyalty card is a card with a simple design and must respect your brand image. The logo appears on one side, and the information on the other. Many styles of cards exist:
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The cardboard card: You can use a stamp to indicate that the client has earned some points. For example, if you own a restaurant that offers sandwiches, your loyalty program could be to buy ten sandwiches to get the next one free.
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The plastic card: It is the most used type of loyalty card, and it often comes with a barcode. However, we need to say that it might not be the best eco-friendly option.
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The mobile card: We can often find it on the shop’s app; however, if the shop does not have an app, it is possible to add mobile loyalty cards on your mobile phone.
You likely start with a physical loyalty card before choosing an online card. If you own a small business, the cardboard card remains the most cost-effective solution.
In conclusion, you now know how and why you should create a loyalty program. If you have just started building an eCommerce business and do not know where to start, find our best tips on preparing a successful online store launch. Good luck!