A Few Best Customer Loyalty Program Ideas for your Business
Published: 7/17/2020 9:39:06 AM
Loyal customers are very difficult to have and it is not a matter of luck. You need to work hard in order to earn the loyalty of customers. In addition to this, you need a repeatable and predictable plan to reward customers so that they turn towards your brand wherever they wish to buy again. This is where customer loyalty program comes into play.
With the correct customer loyalty program ideas, it can be very easy to convert new and first-time buyers into loyal customers. This post introduces you to some of the best ideas about a customer loyalty program that can help you improve customer retention, drive more sales, and build stronger relationships with customers. Let us begin.
What is the Customer Loyalty Program?
Customer loyalty is a customer's inclination to repeatedly return to a brand to conduct any kind of business due to the remarkable and delightful experiences they have with that company. A customer loyalty program or rewards program is a marketing plan, which incentivizes loyal customers that engage with a brand frequently. Loyalty programs benefits are huge and offer different advantages to loyal customers in the form of deals and discounts. In addition to this, such programs are also beneficial to the company as it helps in retaining customers.
Why is Customer Loyalty Program Necessary?
As per a study, it costs a company five times more to acquire new customers as compared to retaining current customers. Therefore, nurturing your present customers is far more worthwhile, thereby saving a lot of time and money.
Apart from keeping hold of existing customers, loyalty programs also help in improving brand image amongst new customers. In addition to this, such programs boost customer satisfaction and help turn customers into brand ambassadors for your organization, thereby resulting in more customer referrals. This eventually leads to increased sales conversions for your company. Moreover, customer loyalty programs play a major role in building your brand’s social image.
Customer reward program also symbolizes that there is a strong sense of trust between your customers and your brand. With such programs, customers will opt to return to your brand frequently, thereby placing you in the vanguard position against your competitors.
What are the Features of an Ideal Customer Loyalty Program?
If you are mulling over to start a loyalty program for your customers, be sure that it has the following features:
- Customization: As per a study, 41% of customers are loyal to brands that let them personalize products. Your reward program should offer members free customization, such as designing and ordering a product as per customer’s requirement.
- Offers: In a recent study, it was seen that 59% of consumers are loyal to companies that give them gift cards, discounts, deals, and special offers as a token of appreciation for their loyalty. Almost all the companies follow this standard, but just make sure you’re keeping track of which deals get the best outcomes and create the most profits.
- Social Media Influencers: Twenty-five percent of customers are loyal to brands that partner with social media influencers or celebrities such as popular YouTubers, bloggers, or social media celebrities. Try a partnership with an influencer that your customers care about.
- Innovation: Consumers are loyal to businesses that constantly have the latest products available. In addition to this, customers also show loyalty to those brands that offer them new products, experiences, or services. You must be able to create special experiences for your reward programs, such as early access to sales or new products, or a VIP sale altogether, for loyal customers.
- Friends and Family: It has been observed that users are loyal to brands which their friends and families do business with. Your loyalty program must offer customers a reward for getting family and friends to sign up.
Some Tested and Proven Customer Loyalty Program Ideas
Now that you have had a brief about rewarding programs, here are some customer loyalty program ideas that can help you hold on to your loyal customers:
Keep Rewarding System Simple
This is one of the most common ideas where after every purchase, users get some rewarding points. These points can be used later for special services or at a special discount. On the other hand, many businesses make this simple process so complicated that users often get confused.
For example, some companies offer 10 points, which is worth a dollar, after every purchase. Next, they ask customers to earn 30 dollars in order to get 10% discount on users’ next purchase. This is not a reward, but pain for customers to understand. Therefore, a brand must always make sure that its rewarding system is as simple as possible.
Offer Referral Bonus
Acquiring new customers is much harder as compared to maintaining your current ones, but it is not impossible. Allow your current users to promote your brand amongst their family and friends and reward them with attractive discounts and deals upon successful completion. Such deals, offers, and discounts can be used by them during their next purchase.
Gifts after Purchase
Customers love when they receive gifts, which tempts them to purchase from you again. As you grow your brand by adding more and more products, allow your customers to get a taste of those new products (before you actually launch them) in the form of a gift. Brands can offer new products as free samples to the customers. This will allow users to try new products in advance as well as create brand awareness for companies through word of mouth.
Surprise your Customers
Creating surprising moments for your customers is one of the best ideas that brands can use in their customer loyalty programs. Sending a cake on the customer’s anniversary or birthday, or emailing reward points is a great way of showing that you care for your customers. In the end, everyone loves surprises.
Support a Noble Cause
You can create a system that allows your customers to donate their earned points for a noble and charitable cause. This allows customers to donate their earned points as a form of money and is an excellent strategy to make your loyalty program stand out from others.
Partner with Other Companies
Strategic partnership with other brands and businesses is actually effective in holding customers. Businesses need to know customers’ buying behavior and requirements to choose other companies fit for the partnership. For example, if you run an online food delivery business, it would be great if you partner with local hotels and restaurants for more money saving deals or combo offers. This way users will feel that you actually care for them and are ready to take efforts to provide them the best.
Having said that, customer loyalty program is a great way to hold on to your customers and to boost your business. An ideal and best customer loyalty program must be dependent on your business objectives and your capability of retaining customers. While creating such programs, you might need assistance from someone who is expert in this field. And WareBuy can help you get in touch with marketing experts who can help you design the best customer loyalty programs. So, start today by deciding which customer loyalty program ideas you are going to opt for.