The goal is to express to your devoted consumers how much you value their company. Customers as well as your business gain from it. Where customers feel valued and significant and where they get the attention they want, they tend to spend more money. The only query is whether you want to charge for this through paid loyalty programmes or offer it without charge to everyone. Let’s offer some recommendations on the subject.
Free Loyalty Programs: Expand Your Audience & Build Credibility
It can be difficult to involve clients in a standard loyalty programme today. It is no longer sufficient to give them a membership card to get points. Your clients currently carry numerous loyalty cards in their wallets. Long-term satisfaction and consistent engagement with your brand are essential to retaining current clients.
People want to be engaged outside of the buying cycle, therefore businesses must go beyond paying customers for their purchases. The objective should be to build an emotional connection with clients since they want greater experiences and more valuable incentives. Only after that, even if your rivals are providing a better deal, would consumers choose your brand. Recognize your loyalty programme participants for non-transactional actions like reviewing your product, sharing a photo of it on social media, or taking a quiz to show them how much you value their participation.
Drive a High ROI with Paid Loyalty Programs by Concentrating on the Most Valuable Members
Members of paid loyalty programmes pay a recurring membership fee in exchange for excellent perks they can use right now. You will be able to provide your most valuable customers more unique gifts by identifying them and letting them know how much you value them. You must offer these customers incentives that are worthwhile enough to strengthen your relationship with them. These benefits should improve their life in some way, such as free express delivery, 24/7 helplines, invitations to product launches, etc.
According to a McKinsey survey, participants in paid loyalty programmes are 60% more likely to increase their brand spending after joining. This is due to how emotionally connected they feel when they feel noticed. They are more inclined to shop and wish to take advantage of the benefits of membership because they have paid for membership. Additionally, by ensuring active customers, you may expect to see an increase in buy frequency, basket size, and brand loyalty.
Paid loyalty programmes present a compelling opportunity to both attract new clients and forge closer bonds with existing ones.
The fact that members’ initial investments fuel fee-based loyalty programmes makes them even better. It can quickly add up to a sizeable sum of money in the bank.
Are Loyalty Programs Free or Paid?
Loyalty programmes that are free draw a significantly wider variety of clients. There is no cost to participate, so joining up carries no risk. The larger member base makes it more challenging to personalise messages, though. Free loyalty programmes run the risk of teaching your customers to wait for discounts even though they may be simpler to set up and operate.
Paid loyalty programmes, on the other hand, demand a charge to join, and you can keep clients active with monthly or annual membership fees. Additionally, because they are far more devoted, clients in compensated loyalty programmes are of a much higher calibre. Additionally, you may give members the best value by giving them more individualised experiences by focusing your loyalty program’s audience.
More information on member preferences can be gathered as well. Naturally, customers want to take use of the possibilities of something they have paid for. They do not want to waste their money. Although fee-based loyalty programmes may seem more difficult to implement, in the long term, the benefits may also be bigger. You should bear in mind that it is your job to set the appropriate membership fee and ensure that members receive actual value for their money.
Time to Make a Decision
Make sure the programme fits with your marketing strategy when deciding which choice is best for your business. In either case, keep in mind that you need the ideal ratio of transactional and experiential rewards to draw clients. A free loyalty programme is ideal if you want to reach a larger audience. On the other hand, a paid loyalty programme can be a better option if you want to identify your top-tier consumers.
Do not hesitate to schedule a demo or invite us to your RFP if you are interested in knowing more about what Antavo’s Loyalty Management Platform has to offer.