Customer loyalty programs are a good way to incentivize your existing customer base to keep on spending in your business. Loyalty programs reward your customers for being loyal to your product over other competitors. It is one of the most efficient and cost-effective ways to retain your existing customer base and keep them loyal to your brand and make them reoccurring customers.
Gaining new customers is many times more expensive than nurturing and rewarding a loyal base of customers, so it is becoming more and more important in the modern era to have loyalty programs to reward the customer with. It can be daunting to start one, however. Here are the steps you must take to start your customer loyalty program.
Step 1: Decide on the reward
The first step you need to take when setting up a customer loyalty program is the reward that you decide on giving the customers for repeatedly giving you revenue. You must make sure to not make the rewards too large and exploitable by the customer. If you can, use rewards that help save the customer money. Research has shown that customers are far more likely to give you repeat business if they can save money.
Step 2: Easy to sign up, for customer and employee alike
When it comes to loyalty programs, nobody likes one that is overly complicated and difficult to join. You need a program that makes things as easy as possible for your customers to join, or even for your employees to sign up your customers. A good way to know whether or not you’ve achieved this is by having the employees explain to the customer the program. If they can do so in 30 seconds or less, it’s probably quite simple. If it’s not explainable in 30 seconds, it’s probably too complex for your customers to care about.
Step 3: Requires little management to run
Your management should ideally already be busy with their job of the day-to-day management of your business. The last thing you need is to burden them with another task to manage. The fewer resources your reward service demands, the better it probably is. If your customer loyalty program doesn’t require management to oversee it all the time, it will be less susceptible to human errors.
Step 4: Existing programs
Customers don’t like to do a lot of work to redeem their loyalty to brands. They already have too many cards in their wallets and would prefer not to add another one. You can make your customer loyalty program app-based to circumvent this, as free apps are often quite easy to operate.
Step 5: Benefits your customers most
You must make sure that you’ve created a simple interface that benefits your customers above all. If it’s not easy enough, rewarding enough or customer-friendly enough, you may want to go back to the drawing board.
Customer loyalty programs can be made easy with eLoyaltyapp. You can get a simple app to implement your system at a fraction of the cost of making your app from scratch.