Over 80% of customers have reported that loyalty programmes improve their brand experience with a company. But before you start designing your rewards programme, you need to ask the correct loyalty programme questions; else, it could not be a success. Fortunately for you, we have all the information you require.
In that case, are you prepared to make your loyalty programme successful? Let’s start now!
1) Objective: What do you hope to accomplish?
It’s critical to make clear why your loyalty programme was created.
Give your reasons for starting a customer loyalty programme in the following customer loyalty questions. What corporate objective drove your choice to launch a rewards programme? Make a list of your responses and then order them by importance.
Following are some typical responses
Increase your checkouts.
Increase the number of purchases.
raising the overall basket value
Get “sleeping” consumers awakened
These concerns about client loyalty are sometimes difficult to answer, especially at larger organisations, and you might also require a business case to get clearance at all levels.
2) Quantities: How will you gauge your success?
It’s time to examine the data now. Without precise figures, a goal is meaningless. Be mindful of the little things.
You can determine the return on investment (ROI) of the initial setup of your loyalty programme by developing a number-based plan for the following three months. In the long run, this will drive and focus improvement.
3) Target: Who is your loyalty programme aimed at?
Criteo claims that 65% of clients adore loyalty schemes. A sizable audience is the focus of these programmes. But don’t make your loyalty programme universal. Why?
because not all clients are created equal. They have distinct expectations of you. A returning customer might respect your consideration of their feedback, whilst a potential new customer might be more interested in discounts.
Think about how you can leverage that customer group to assist you achieve your goal after picking just one at first.
Making a single sector your focus also increases the risk that not all of your clients will be satisfied. Targeting different consumer segments is possible once you have a well-honed approach for one.
4) Finances: What budget do you have for your programme?
A loyalty programme requires money to operate. The most expensive element is not the rewards. The time and energy you put into developing and announcing your programme is what has the potential to burn through money.
And advertising is still not included in the picture! If your company has a loyalty programme, you should mention it on every platform where your company is advertised.
The foundation of any effective loyalty programme is a budget that accounts for both predictable and unforeseen expenses. Download our ebook to learn more about budgeting.
5) Technology: How will your loyalty programme be implemented technically?
Making a loyalty programme is a technological problem in addition to a marketing or business strategy challenge.
Building your own platform involves a lot of risk, setbacks, and never-ending struggles. It takes a lot of time to determine what is effective and what is not. However, using a loyalty programme software may be a wiser move.
You’ll possess more sophisticated loyalty logic. To completely integrate it with your marketing automation, online store, and POS, it will connect with your databases and systems. It might contain all the sophisticated loyalty logic, incentive administration, and reporting features you’re looking for.
6) Customer actions: Which customer behaviours do you want to promote?
The greatest benefit of loyalty programmes is that they promote a variety of customer behaviours. Although purchases are significant, other customer behaviours also matter.
Do you want customers to tell newcomers about your best-selling product? fill out the surveys for the loyalty programme? Use the “Incentivized Feedback” tool to persuade loyal consumers to leave reviews on items they’ve purchased. Do you want your consumers to tell others about your business? Then use the “Friend Referral” feature to thank them for doing so.
You can offer incentives to your audience for participating in physical activity, downloading your mobile app, reading emails, and even trying the newest beer specialties at your establishments.
7) Incentives: Why would people comply with your requests?
People will only comply with your requests if they are driven to do so. Freebies and discounts won’t, however, guarantee genuine involvement. Customers will go to your competition if they provide better deals.
Gamification can therefore be your biggest ally in this situation. Customers will be excited to play if they can accumulate points, receive incentives, reach customer statuses, and view their rankings on a leaderboard.
Why? since it resembles a game. And everyone enjoys playing games. The following resources will help you learn more about the subject:
Worksheet for reward planning in your loyalty programme
Tier-based loyalty schemes
Gamification technology possibilities
8) API: How will you link your existing POS or online store to your reward programme?
Software for building loyalty programmes is available for purchase. In either case, you must include it into your POS and e-commerce platforms.
For instance, during checkout, the points you offer for online purchases must be visible. Or, if the customer is specifically targeted, the discount will be provided through your POS if the cashier scans the identification (whether it be a physical card, a Mobile Pass, or a QR code on the phone’s screen).
Through pre-built interfaces or through API endpoints, you or your system integrator can link the loyalty management platform to your current systems. Antavo offers both possibilities.
9) Promote: How will you maintain participants’ interest over time?
Customers who are loyal to a brand are more likely to make repeat purchases and have greater lifetime values. Members of loyalty programmes are 30% more likely to spend more than non-members, according to a McKinsey study on the subject. However, having a loyalty programme won’t draw in customers. You must enlighten, educate, and involve them.
So let’s state the obvious: advertise, advertise, advertise. Use banners, newsletters, calls-to-action, Facebook advertisements, etc. to promote your programme. In your physical stores, promote. Making your programme visible to the right people is the goal.
10) Modify: Based on input, how might the loyalty programme be optimised?
So your loyalty programme has been effectively introduced, but the work is far from done!
Imagine that your loyalty programme is a brand-new item that is still being refined.
Don’t hesitate to look for and incorporate customer feedback. If there are any weak places, change the current activities or rewards and add new ones to keep it exciting.