Reward and loyalty programs are designed marketing strategies that motivate customers to establish a long business relationship with the company. The best reward program is the redemption rate. Redemption rates direct the company’s focus on assessing the reward point’s redemption rate. The feedback from this process will help the company relate to the customer interest towards the program. Analysis the customer’s feedback involves examining the percentage of total issued reward points that have been redeemed. The standard for a well-established and functioning program should be twenty feedbacks. Qualities of a successful company customer engagement are attributed to the customer’s response: Poor customer engagements is evidence that the redemption rate extremely is low. Inadequate customers action means the customer won’t engage the valuable actions and thus fewer rewards earned by the consumer. The results are inverse for high customer engagement, as they will show commitment and aspire to gain more rewards.
Edenred Singapore provides customer reward and loyalties solutions for marketing, thanks to their over sixty years of offering customer reward and loyalty solutions. They provide ideas and make long-term plans establishing a sustainable long-term relationship through technology, marketing strategy, and loyalty methodology.
How to build customers loyalty
The ultimate goal of loyalty programs is to have active customers. While many ideas would come to mind on how to accomplish this, there is always a simple and easy way of getting it done; telling them to participate! Getting customers really engaged may not be the easiest thing to do. This requires promotion. Effective promotion is the best way of ensuring and maintaining customer engagement in your program. Promoting your program is a sure way of securing your program recognition. In any case, no customers will ever participate in a program they have never heard of.
Importance of customer loyalty
Customer loyalty helps in customer acquisition and customer retention. It’s beneficial having a new customer than retaining already existing customers. Secondly, customer loyalty promotes repeat business. The customers are retained and buy products and services over and over. The business will benefit from recurring profits. Thirdly, customer loyalty programs reduce marketing and service costs, this because we trust a friends feedback more than the digitally fancy advertisement. Another benefit of customer loyalty program is it provides forecast accuracy and improves the brand image, interpretation of the normal citizen about products and services of the brand. Lastly, in a competitive market, you get to play ahead of the game when you use loyalty programs.
Example of loyalty programs names done right
- Loyalty program names should establish emotion
- Loyalty program names should incorporate the currency
- Using Great loyalty program names
How Starbucks rewards
Starbucks has the best rewards loyalty program that is the main driver for its amazing development and increases in revenue.
Outstanding mobile experience
There is a Starbucks app that makes the loyalty program more interactive and effective. This makes the customer have access and view the number of stars (points they have and can also make payments and orders. The star app makes the program dynamic, offering new, limited time bonus offers rewards to loyal customers creating an engagement and refreshing feeling with every visit to this site.
Rewarding for grocery product purchases
Starbuck also offers points for purchases outside their retail collection. Starbucks sells other products outside their retail collection, thus reward customer purchases outside their retail collection.
Exclusive gold card
When a Starbucks member gets 30 stars in a year they achieve the golden star level. Having this status comes with great perks such as free refills on tea, ice, brewed coffee and importantly a personalized gold card. Starbucks drinkers feel a sense of pride and higher class being their customer and for their high-quality services. The golden star is a physical representation of a Starbucks status as part of an elite group and is the strongest motivation.
Why tiered programs are great for customer loyalty
Gamification makes earning points fun
This is an exciting trend and uses addictive elects that keep the customer locked in such as video games that include games such as progress bars and milestone. This fun experience will attract customers to make frequent visits as its fun and rewarding. Good gamification provide value to the customer and have visual aids that help the customer play and understand how close they are to reaching the next level.
Tiers make your program social
The programs add a social aspect to the reward program. It allows the customer gain social status and ranking. This gives motivation to the customer keeps earning points. They show customers the passage of program member is in each level.
Exclusivity makes customers feel valued
The program makes the most valued customers feel valued. You show them that you value them more than one time shoppers. They are made brand advocates, as they tell people about it and how much they love the company.
Offers the best rewards only to those who earn it
A tiered program ensures you reward those who provide the most value to the company.
Secondary benefits of customer loyalty
When customers become advocates for the company and will go beyond their way tell everyone about it and promote.
The customers are not influenced by the products price and are willing to make a purchase even when the prices inflate.
These are customers that have been referred to use the product by a satisfied customer. When a customer influences others to use the product. Loyal customers make it easy to oversee the amount the purchases they have ever made and predicted the number of purchases they would make and thus predict profits and sells,
How to build loyalty through retention
Understand the shopper funnel -The growth of the business is measured by seeing and growing all areas of the user growth funnel.
- Preparedness to face an ever-changing customer base – Dealing with marketing trends and adapting to the changes by focusing on the relevant majority and giving the customer what they want.
- Being unique – Creating an experience that is different and a notch higher to what they are looking for.
- Invest in brands experience than marketing
- Creating a good balance but Focusing on the experience and technical development.
Myths that could be hurting your business
- Once a customer is satisfied they are yours forever
- Customers only value discount
- The company should constantly reward its customers
- Don’t fix problems that aren’t existing
- Program breakage is saving money
Why employee engagement leads to customer loyalty
- Improved productivity – An employee is more motivated and fulfilled thus tend to be more productive.
- Intrinsically motivated – Employees feel that their position is important to the organization and get personal satisfaction from the job.
- Improves retention and reduces absenteeismEngaged employees keep a long commitment and love to always be at work.
- Impact profitability and increases revenue
How to improve your rewards program with effective email marketing
Building better marketing with bonus point campaign emails and redemption campaign emails. Also building better marketing with referral program promotional emails and points for product promotional emails. Using effective email marketing.
Reasons loyalty programs are imperative for marketers
Boosts growth, boosts reputation, they are budget-friendly, increases sales by offering enticing rewards, provides vital market searches, makes the customer happy, you can provide in-store or digital rewards and once you’ve started the progress is gradual and doesn’t stop working.
Loyalty program number one mistake
Offering promotions to attract only new customers, offering cheap rewards to save money, making it hard for customers to redeem their rewards, and failing to recognize that the program is mainly for their customers.
Strategies for a creative loyalty program
To be creative with your points, creative with customer earnings, creative with how the customers are rewarded, support a charity with the points, by giving the customer a status and titles such as the customer of the month.
Loyalty difference between men and women
- Program visibility – simply considering why would men love it and why women would love it.
- Explainer pages – designing a program for men and different program for women.
- Customer tiers – men love prestige while women love to be recognized.
- Diverse rewards
Elements of a successful rewarding program
Exclusive VIP tiers, engaging mobile experience, offering various ways to earn points, offering valuable and tailored rewards, simple and visual explainer page, consistent and beautiful branding, and lastly by offering a gamified and challenging experience.