Have you heard the legend surrounding the Tower of Babel? It is a mythical origin used to explain why people speak various languages. The moral of the story, in my opinion, is that even though we all have the same intentions, people often express them in different ways. My coworkers and I appear to feel the same way because we’ve noticed that we’ve been questioned a thousand different ways about the same loyalty programme.
In light of this, I made the decision to compile the Top 10 Loyalty Program Questions, all of which were derived from actual conversations that members of our Customer Success Team had at conferences and seminars.
- If I don’t have a loyalty programme, would the industry leave me behind?
Not to worry. This is hardly a true “do-or-die” circumstance. Consider loyalty programmes as strong differentiators that could make you stand out from the competition rather than as a strict requirement.
Loyalty programmes can help businesses achieve a variety of objectives by altering consumer behaviour when used as a customer retention strategy.
Having stated that, you have to achieve a particular goal in order for it to function. For instance, in order to properly move people with the features of a loyalty programme, you must first comprehend the company goals.
- Why should I choose a loyalty provider over creating my own programme?
The DIY approach is typically more expensive and time-consuming because you need to allocate staff to researching the most recent customer behaviour and loyalty trends as well as building and managing the entire concept. Speaking of costs, it will be a significant expenditure unless you have a dedicated team of engineers on hand that can work only on your reward programme.
Long-term costs are lower when using third-party loyalty software because you don’t have to create the infrastructure from scratch. Not to mention the ease of having a group of loyalty specialists at your disposal who are aware of all the hazards and ideal methods for developing a loyalty concept.
- Do point-based systems outperform other kinds of loyalty schemes in terms of effectiveness?
Depends, really. On the one hand, the system where consumers receive points for their purchases is well-liked for a reason: it’s simple to implement, users can understand it with ease, and it works wonderfully for promoting enrollment.
However, point-based (also known as Earn & Burn) programmes aren’t the only effective strategy. In fact, if the majority of your rivals use point systems, you could distinguish out by simply selecting an alternative.
The options are quite varied: you can use perks to show appreciation by offering limitless access to rewards, tiered programmes to concentrate on privileges, or simply mix and match the point system with components from different categories.
- What sort of incentives should I give my clients?
Your fear is reasonable because enticing incentives are the lifeblood of any successful loyalty programme. There are five incentive categories in all, but the problem is to provide the proper benefits for each consumer group.
Consistency is the golden rule in this case. Consider what incentives might be relevant to your audience while creating your reward system. For example, wealthy customers demand VIP service and exclusivity above all else. Offer VIP club memberships with opulent perks or prizes like a weekend retreat in this situation.
- How might a loyalty programme help me save money?
Companies frequently think of loyalty programmes as money pits that make relatively little contribution to their profit margin. However, nothing could be more false! A high ROI is easily attainable with prudence and a well-thought-out spending strategy. Here are some examples of ways to cut costs:
Add a minimum purchase amount to coupons, such as 5% off on orders above $50.
A low-cost option to diversify your incentives is to provide rewards from partners.
One of the unique aspects of Antavo is the ability to alter the value of coupons based on a customer’s churn-score.
Give Platinum Tier members or members of a niche club early access to new products; it doesn’t cost you anything, but it works.
- Do rewards for actions other than purchases serve any purpose?
Absolutely! Customers enjoy feeling appreciated, and this emotion may be utilised to encourage a variety of behaviours, including purchases. It is a waste, though, to limit positive experience to just business.
Why? Due to their infrequent purchases, customers are unable to frequently take advantage of the rewards they receive for their loyalty. In contrast, rewarding customers for different kinds of activities, such as writing user reviews, introducing a friend, or even working out, makes them feel more connected to your company and is regular enough to encourage the development of new habits.
- How can I encourage customers to recommend me to others and turn them from regular customers?
A referral programme with incentives for both sides would be the apparent solution to this problem. This method has stood the test of time and is still effective today. However, there are other ways to increase social media buzz:
Promote a contest where participants can submit amusing comments under a shared hashtag in the hopes of winning a valuable prize.
Offer prizes or loyalty points to people who upload images of themselves using your products to Instagram.
Badges: Design contests that honour clients who frequently share your Facebook page, get user ratings, or subscribe to your newsletters.
- What is the most effective strategy to follow up with offline customers and raise their lifetime value?
Previously, businesses utilised plastic membership cards, but these proved to be too cumbersome. People regularly forgot their cards at home, which resulted in their making purchases secretly and missing out on loyalty rewards. Naturally, this just served to aggravate matters.
One solution to the issue is to install a POS device inside the store. By doing this, store employees are able to scan clients’ virtual cards (mobile pass or a barcode in their online profile page). Members consistently have access to their devices, therefore this strategy works.
But only consumers who have signed up for the loyalty programme can use the POS. We have developed a cutting-edge hardware-software system to promote in-store enrolment.
- Is it possible to swiftly increase consumer loyalty without a formal loyalty programme?
We frequently get inquiries about loyalty programmes like this before Thanksgiving or Christmas. It is obvious that a small amount of time is not enough to develop a loyalty programme concept, construct the rewards system, and test it.
We suggest our Mobile Wallet Solution to clients that are rushing to roll out a customer retention tool before the busiest time of the year. Why? because it can be put into practise in a single day!
- A lot of client data is gathered via loyalty programmes. How can I guarantee their security?
Your worries are reasonable. In fact, loyalty programmes include a wealth of information that needs to be guarded from data miners and unintentional disclosures.
At Antavo, we have implemented the necessary organisational and technical safeguards to safeguard your data and ensure that only those who need access are able to access it. To stop illegal use of your data, Antavo employs technical security solutions such firewalls, encryption techniques, passwords, and antivirus software.
Prepare for Client Loyalty
This list includes all of the frequent questions we get. Still have a query about a loyalty programme on your own? Do not be afraid to inquire! Contact our loyalty specialists directly for solutions that are unique to your company.
Additionally, we have a substantial library of data on customer loyalty programmes as well as a section on case studies that illustrates how our theory works in practise.