Fundamentals of a Loyalty Program

Posted on 15.8.2017
Written by Eva Ciga

What captivates your client? How can you inspire them to become devoted brand supporters who keep using your service or your products? What can you do ensuring that your customers recommend your brand to others? These are significant questions to ask when you own an eCommerce business.

The key thing is that you need to answer these questions to make your online business a thriving one. One way of keeping your customers happy is a successful loyalty program. Maybe you already have one in place, but how effective is it. What can you do to add more value to your loyal customers?

We are here to answer this important question. Here you can find fundamentals of a loyalty program to make yours perfect.

The Essentials to help make your Loyalty Program Perfect

The great thing about using a loyalty program is that it does not have to be the same as your competitors or the shop next door. Use your customer’s individuality and competitive landscape to create programs that work for both of you.

Yes, you want to test other leading programs to see what may fit in with your budget and plan. Social media can be one of your important elements, but the reliability of a customer’s not only built into a plastic card or your brand.

When choosing a loyalty program, look at the bigger picture. Start with fresh ideas in your plan, such as a mobile app, but the importance is to keep the fundamental values of your business.

No matter what type of loyalty program you use a Tier, Point System, Value-based, VIP Benefits to a Grouping program the following essentials will help make your program function flawless.

Keep it Simple

When starting your loyalty program the key is to keep it simple. Using a basic program gives you a great success once launched compared to one loaded with features. By keeping your loyalty structure simple it helps:

  • Prevent confusion with your customers, as it’s important not to overwhelm them from the start. By starting easy your clients can understand the program. You can add extra features over a time as your customers are accustomed to the loyalty program.
  • It provides a great marketing potential as you have loads of surprises lined up for your customer to wow them in the future.
  • Further, it allows for customer feedback as they help you with improving the program. This helps you to determine what is effective in the early stage of the program and what is not effective.
  • Another reason for keeping it simple is that you can launch the program quickly compared to waiting for weeks or months down the road.

Make Power of Communication your Focal Point

For a successful business, the most important thing is communication and clarify. If you do not have clear and regular communication you and your customer, the loyalty program will become redundant.

Keep in touch with your top priority customers when developing your own loyalty program. You need to make your clientele feel treasured and valued. Get feedback from the top 5% of your customers, as ultimately, those are the most important ones!

There is nothing worse than receiving emails from online business with undisclosed receivers make it personal as this will make them feel important and valued. They will respect you for this and turn into loyal customers leading to an ROI.

Another way to communicate with your clientele is to use a loyalty strategy built into your Point of Sale System. Send them pumping messages with attractive offers to bring them to your store. Start a Newsletter to build your client base sending them a personal email with special offers.

One more great marketing tool is social media outlets and very effective to stay in touch with your customers. The big thing is to keep your posts active, interesting, and relevant.

The Customer Comes First

If you want your loyalty program to be a success, understand that your customer always comes first. In every step of your business, make sure you offer an outstanding client experience throughout their journey with you.

Your client base is what makes your business work. Knowing what they like and dislike is the key element.

Always keep your customer feedback in mind when planning your next strategic move. The importance is to place your customer’s needs first when designing your program.

This is beneficial for you and the customer. This ensures the success of your of the program and helps you to retain more customers.

A Friendly and Professional Service

Nobody wants to feel irritated when contacting your customer service for advice or when having problems with a product. Always be friendly and professional in everything you do from taking a phone call to answering an email. Follow up with your clients the best you can make sure they are happy with your service and products.

Inform your customers with a courtesy email on their loyalty points and other related discounts and gifts. Reply in a timely manner and never leave your clients waiting.

Keep Your Loyalty Program Interesting

The important thing about your loyalty program is that you need to keep it updated and interesting to boost sales frequently. Are you using a point-based program? Present customers with relevant rewards such as a discount on the products your customers are interested in, that perhaps they have purchased in the past.

If your customers like to save money and enjoy receiving big rewards offer them a reward schedule making sure they take advantage in saving points. Does your client have a short attention span? If they do have, do not make it difficult for them to get their first reward.

You can reward them with enough points to exchange for something they would need or use with their next purchase when signing up with the program. This keeps your customers motivated all the time and keeps your program interesting.

Tap into different network resources available and see what you can do to kick some dust in your competitions eyes. Always stay ahead of them and offer something new and refreshing.

Conclusion, Make Your Value Proposition Clearly Seen

The aim of a loyalty program is to extend the value of your customers. Your customers need to clearly know what is the value within the program. Furthermore, they need to effortlessly understand what they stand to win if they provide you with their loyalty. This is why it is important to make your value proposition clearly noticeable and easy to understand.

If they know the value you are offering, and how they can achieve their rewards, whether free shipping on their orders to discounts on certain products the chances are they will come back for more. Once you have your loyalty program in place and have these fundamentals in place, do not neglect to measure the success by checking the stats. If you don’t see progress, change the program. If you still don’t see progress, scrap the program and try again.

You need to know what your return on investment is. You do this by measuring how frequently customers spend in a lifetime vs the cost to run the program and the cost of the rewards. This gives you a better idea if your current loyalty program is worth it or not.


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