These days the market is saturated with free stuff, giveaways, and rewards. However, it is still possible to run a successful loyalty program that stands out from the crowd and still offers excellent value for customers and a positive return on your company’s investment.
It can be challenging to inspire customer loyalty in the e-commerce environment where free stuff is commonplace, and a lower price is one Google search away. It has led to the impression that running an effective loyalty program has become too expensive for it to be worthwhile, but this is thankfully not the case.
The most important thing is always to stay one step ahead of the competition, don’t do what everyone else is doing, and, more importantly, don’t stagnate and keep doing what you have always done. So, while these tips might be effective now, be sure to keep researching and keep updating your rewards and loyalty programs to ensure you and your customers are always getting the most out of them.
With that said, here are a few tips for running an effective loyalty program in the current oversaturated online market.
Don’t Overuse Discounts
Generic discounts have been a part of loyalty programs from the beginning and probably will be until the end of time but don’t use discounts as the central reward system of your program. Not only is it a system that most customers have become familiar with, but you also may not be able to compete directly on price with some competitors, so pure discounts are not enough to secure customer loyalty these days.
The main problem with discounts is that they don’t do enough to promote business because they tend to offer a lower price for something the customer will buy anyway, so the discount itself isn’t having that much of an effect beyond saving the customer a bit of money. But, again, this is not a bad thing. It just isn’t enough to create the kind of repeat business loyalty programs are famous for.
Put Some Thought Into Unique Rewards
It is vital to ensure the rewards you are offering are not only relevant to your customer base but that they are unique enough to help make your company stand out against the competition. Almost every brand in every industry gives away free stuff.
For instance, the Starbucks Rewards program has over 19.3 million members and generates half its revenue, giving away a ton of free coffee. In addition, Amazon Prime members get access to unlimited free two-day shipping. Something similar can also be noticed in the iGaming industry, as many new casino sites offer free spins and bonus money to their players.
Personalize Reward Offers
If you have been running a loyalty program for any length of time, you will likely have gathered a ton of data about your customers, from shopping habits to preferred brands. Even if you are starting fresh with a new loyalty program, it won’t take long to build up an idea of who your customers are.
Use this information to offer rewards with intrinsic value to the customer to make them feel valued and ensure they are getting a genuine deal out of the rewards program and their interactions with your business. Failing that, prefer gift cards and cash over random free junk.
Make Customer Feedback Easy
The final point filters into everything mentioned above. Make it as easy as possible for customers to provide feedback on their experience with your company and loyalty program. Provide multiple avenues to comment on everything from store experience to brands they would like to see on your shelves.
It isn’t always fun going through reams and reams of customer feedback, but it is so important, and there is so much to learn about your company by seeing it through the eyes of your customers. To create and grow an effective loyalty program and even a successful company, listening to the customer and putting them at the forefront of your business strategy is always a good idea.