As personal technology gives customers convenient tools for being more informed, and thus more selective, about where they spend their money, companies need new ways to capture their hearts. With loyalty programs incentivizing customer behavior, more and more companies are making them a key part of their business development strategies.
But just having a loyalty program does not necessarily translate to automatic success. According to Colloquy’s 2015 Loyalty Census, approximately 3.3 billion loyalty program memberships are in the United States, with each American household averaging 29 loyalty programs each – but more than half (58%) of total loyalty members do not actively participate in their memberships. That 58% translates to a staggering amount of lost business opportunity.
What makes a loyalty program thrive? The ability to engage program members. The more relevant and attractive a loyalty program’s offerings, the greater the chance that customers will keep coming back for more – and bringing friends with them.
By using the right tools and methods for attracting and sustaining loyalty members, companies reap significant benefits of customer retention and organic promotion. Check out three tips on how to get the most value from your loyalty programs.
1. Personalize Rewards to Customers
We live in the age of personalization – people want the products and services that suit their needs. In order for a loyalty program to be effective, rewards need to be personalized to the individual customers.
But the only way that truly effective personalization can take place is if companies know all about their customers. With Ignify’s Loyalty Management Solution, companies are able to store all customer data in a single, comprehensive database.
With this database, customer service representatives are able to access consolidated customer master records, which can include loyalty program transaction history of each customer across channels. Equipped with this information, companies are able to quickly identify and track the loyalty rewards that are most quickly earned and spent by customers (on both an individual and group basis), allowing them to create more targeted promotions.
2. Measure Program Effectiveness with Analytics
A loyalty program cannot be considered effective if the numbers don’t back it up. With the analytics and reports offered by the Loyalty Management Solution, companies can closely examine reward earning and redemption rates, as well as the performance of reward-related marketing campaigns, helping them better pinpoint the programs that are working, and the ones that aren’t.
Dashboards in the Loyalty Management Solution allow companies to view real-time data in graphs and charts, enabling them to get an understanding of performance at a glance. These charts and graphs are fully configurable by the user, which means that if the user prefers to see certain data in a pie chart, all he has to do is change the graph with a click of the button, and the data will change into a pie chart.
The Loyalty Management Solution’s dashboard functionality provides data right at a business user’s fingertips, allowing them to get an instant snapshot into loyalty program performance.
The charts are also dynamic; in other words, if a manager wants to get more information about a particular slice in a pie graph, all she has to do is click on the slice – the data then filters accordingly, allowing her to see the data only associated with that pie slice. If the manager wants an even more granular view of the data, all she has to do is click to view the records associated with that section of the graph, and then click on whichever individual records she chooses.
3. Use Social Media to Promote Loyalty Programs
Loyalty programs are an important way to strengthen existing customer relationships, but they are also an excellent opportunity to entice new ones as well. Who can resist a great offer?
Social media can play a significant role in effectively promoting your new loyalty reward offerings because it facilitates connection. In addition to people able to share content quickly and easily, social media’s ability to interlink people means that potentially huge pools of people can indirectly access that content. For instance, I can see when a friend on Facebook comments on the wall of a complete stranger (at least, a stranger to me). I can view the content that is being commented on, and if it’s something interesting, I might read that article myself – or even share it with my own Facebook audience. Hence, viral content.
If you share the amazing deals that can only be accessed by signing up for a loyalty program, you generate curiosity – or even lust. And better yet, if you have loyalty program members seizing on your social media promotions, sharing the value they get from being a member, you gain a powerful form of advertisement.
Remember – It’s All About the Customer
The primary factor behind a loyalty program’s success is whether the program truly serves the customer. By always keeping the customer experience front-of-mind, businesses will create the offers that most resonate with their customer base, and that drive customer engagement.
If you would like to see the Loyalty Management Solution’s features in-action, please be sure to sign up for our upcoming Loyalty Management Solution Webinar! Click here to register: http://bit.ly/1Gd2n85
For more information on how to improve your company’s loyalty program management processes, please email us at firstname.lastname@example.org.
Ashley Harbaugh is a Marketing Coordinator at Ignify. Ignify is winner/finalist of the Worldwide Microsoft Partner of the Year Award in 2014, 2013, 2012, 2011 and 2010, and offers eCommerce, ERP, CRM, Order Management and POS solutions based on the Microsoft Dynamics line of products. Ignify has been included as the fastest growing businesses in North America for seven years in a row by Inc. Magazine and Deloitte in the FAST 500 from 2008 to 2013.