Now that you know the difference between a loyalty program and an incentive program, it is time to get your loyalty program set up. Offering loyalty rewards to your customers can deliver plenty of rewards for your business. For instance, 39.4% of customers will spend more at the businesses they’re loyal to even if cheaper options exist, and 60% will recommend that business to others.
In the world of customer loyalty programs, building a reward system that stands out is a major endeavor for any company, and it can be a game-changing opportunity if created with care and precision.
Here’s how to get started improving your retail sales with a customer loyalty program.
STEP 1: DECIDE WHAT KINDS OF REWARDS YOU WANT TO OFFER
Rewards come in all types and are limited only by your imagination. Here are some ideas:
- Points redeemable for purchases
- Free gifts
- Access to special sales or early access to products
- Free shipping
STEP 2: DECIDE WHAT ACTIONS YOU WANT TO REWARD
To choose the most effective rewards, look at where your store needs to improve and tailor your rewards that way. For instance, if Sunday afternoons are always slow, offer rewards for customers who buy during that time.
STEP 3: MAKE IT APPEALING TO YOUR CUSTOMERS
If customers don’t think there’s value in your loyalty program, they won’t sign up. Offering a range of different rewards helps to convince customers of the value of your program and also keeps it fresh and exciting. Knowing your customers will help you assess what rewards will matter most to them and what type of loyalty program they’re likely to engage in..
STEP 4: REVIEW YOUR OPTIONS AND SET UP YOUR PROGRAM
You can search for loyalty programs for retailers online or get advice from other retailers or industry associations. Before choosing a loyalty program, get answers to these questions:
- Is it easy for you and your team to set up, learn and use?
- Is it easy for customers to use and understand? (If not, they won’t use it.)
- What are the setup and ongoing costs?
- Does it integrate with tools you already use (such as your point-of-sale system or email marketing software)?
- Does it offer the flexibility to provide a range of rewards and to customize rewards for different members?
STEP 5: START SIGNING UP CUSTOMERS
Once you’ve got your loyalty program up and running, promote it like crazy. Use in-store signage and point-of-sale signage to encourage signups. Announce the loyalty program on your website and your social media platforms, with a link to where to join. Send out marketing emails to your already loyal customers.
Employees are key to enrolling customers. Train your employees to promote the loyalty program during every sale. A good tactic is to share with the customer what rewards they could be getting for their purchase if they joined the program.