To understand how a customer reward program works, imagine this:
Say you’re a proud business owner, and your digital marketing efforts are shifting towards bringing new leads – using your active accounts on every social media platform to promote your products.
Knowingly, these are necessary steps in promoting your product on the internet. However, on the flip side, these tools serve only to increase your sales. In these modern times, additional steps might be required in order to attract more customers. Essentially, the steps above are mainly focused on new potential customers, not existing ones.
If you wish to improve your marketing strategy, you must include your current customers in the bigger picture – by using a customer reward program, or loyalty marketing.
There are many ways to get customers to use your reward program. Here, we’re going to explore the most common and explain how you can use them to create a better customer loyalty software and strategy to keep your customers coming back to your product.
Let’s start from the top, the driving purpose for using customer reward programs.
Why are Customer Reward Programs So Important?
Customer reward programs, or customer loyalty, is a crucial part of any business.
Bringing new goods to the market will seem pointless if you don’t have loyal customers that keep returning to your brand for more purchases.
By now, you already know that customers spend more time and money on reputable brands they are loyal to. When you get your first dedicated customer group, the chances that information will spread among users’ families and friends is inevitable.
Then, boom – more and more loyal customers will arrive on a daily basis. Spreading the news and information on your product is also known as word-of-mouth marketing; and nowadays, we all know that news travels faster than light.
But the question remains, how do you do it?
Well, there are a few simple steps on how to turn happy and satisfied customers into loyal ones.
- Be as generous and polite as your customers are.
- Show your appreciation after each purchase.
- Create a friendly community for your most loyal customers.
Of course, there are many other ways to convert your customers to become loyal. However, the steps listed above are among the most commonly used in practice.
Now that this is out of the way, let’s see how your buyers can use the customer reward program and what steps you should take for success.
Train Employees to Promote The Program
When promoting a loyalty program, it’s always best to be straightforward.
Now that your employees have been introduced to your product, it is up to them to sell it and attract new buyers.
By training employees to promote your customer rewards program, the existing customer will get the necessary information they need to start using it.
When it comes to training your employees to better communicate the information to customers, it’s best to gather your workers at a launch meeting and give them detailed instructions on how the program will run.
As a business owner, you must make sure that every employee has clear insight into your plan of action and are educated on the following:
- The loyalty program’s reward structure.
- The functionality of the customer loyalty software.
- FAQs and answers about the program itself.
- Information on all auto-rewards/promotions sent to customers.
- Customer objections and overcoming them.
Now we’ll get into some of the most popular loyalty programs that will make your life a whole lot easier.
Point-Based Loyalty Program
This is the most basic loyalty program, used by almost every business out there.
Here, your loyal customers will earn unique points, which buyers can later use on discounts or any other special rewards. Despite being the most common customer reward program, the structure of this model is far from simple. You’ve probably already seen a message stating: ‘twenty loyalty points equals 2 dollars, and 30 dollars will get you a 40% discount on your first purchase of the month.’
This looks simple if you’re the customer, but it’s the opposite for the creator unless a well-prepared execution plan is in place. Sometimes, even the most basic programs will fail.
Coalition Loyalty Program
This is one of the most effective ways to help your company grow and retain existing customers. The point of this program is to form a partnership with another company that perfectly fits your product.
The result will then depend on your customer’s everyday lives and needs.
For example, if you are a sporting attire manufacturer, you might want to partner up with a local sports shop. The key here is to make a deal that will be beneficial for both sides and satisfy your customers’ needs at the same time.
The Tier Point Program
The Tier Loyalty Program is basically a system focused on a customer’s level of loyalty.
The Tier Program awards your customers with a certain level of loyalty, and the more they buy your product, the higher that level will be. Your most loyal customers at the highest level will have better beneficial rewards, such as better promo deals and more prominent discount codes.
Offering tiers as part of your reward programs helps you establish a better connection with your customers. The perfect example of this are the VIP flying clubs in every major airline company. The more you travel, the more points you collect – giving you more opportunities for further escapades.
Using some of these programs will encourage the customers to use your reward programs, so let’s see how you can promote them.
Posting Info About Your Rewards Program
Posting valuable information has never been easier. With social media at our fingertips, you can spread news in a matter of seconds. And as a result,l buyers will visit your store’s website and browse for useful information..
One way to catch the customer’s attention is to promote your customer reward program and provide them with insight and details on the program. For example, let’s say you own a restaurant and wish to present the company’s customer reward programs. The best way to do this is to create a banner on your landing page that pops up as soon as a visitor enters the site. On that banner, your customers will see all benefits of your program that will spark their interest.
This is where the FAQ’s section comes in handy. Every critical question must be answered in the FAQ’s so buyers can be well-informed when deciding to use your program.
Promote Your Program on Social Media
Every company, big or small, has active social media accounts on all platforms.
The better your social media post is, the more customers will be willing to engage with it.
In addition to fun text, adding stunning visuals is a helpful trick when vying for favourable audience feedback.
Use a free software to design an outstanding image, and ensure you’ve added the program’s info to it – including a highlight about the initial sign-up reward. You can accomplish this by simply providing the sign-up link, where customers will see all of the reward programs’ advantages.
Let’s say that you have already acquired a customer’s number or email address.
Now you can notify those loyal customers about your rewards programs via emails that contain all essential details.
If you decide on a newsletter, it’s important to create polite messages that will encourage customers to use your loyalty program.
Highlight your sign-up link at the beginning, explain how customers can earn points and rewards, then close out with the steps on how to sign-up and enter your program.
The best way to start this customer reward program is to offer your existing customers something free upon sign-up. Once they’ve claimed their first reward, inform them that every point collected will give them further benefits and rewards.
Why Choose GlueLoyalty?
As a professional service provider to brands and businesses worldwide, GlueLoyalty offers pre-determined and super-efficient customer reward programs for your business.
Thanks to our sophisticated tools, you can customize a loyalty program and rewards system that works marvels for both your customers and your brand. Our tools help you manage your entire revenue, monitor the progress of your sales, and acquire reports on the efficiency of your loyalty program – all automated and ready to go.
By using the latest loyalty program features and assigning your own automated business loyalty management, you will witness both your loyalty and sales grow – continuously bringing those customers back for more!