By having a greater understanding of customer spending and visit habits, marketing becomes more agile, allows for more informed decisions and can ultimately compel repeat visits and increase baskets through relevant engagement.
Three main factors make a loyalty program successful:
1. A well-designed program. Core loyalty programs typically motivate members to increase visits and spend. Customers need to feel the value of being a member. They should earn a reward about every four to six visits. It is best to make sure you have low-value redemption options such as a cup of coffee or a candy bar that customers can work toward redeeming and feel as though they are being rewarded fairly.
Running various kinds of promotions is another key component in a well-designed program. Promotions keep the program interesting and fresh in the eyes of the customer. Getting a surprise reward makes customers excited and more willing to engage in the program.
2. CPG deals that are aligned with your brands goals. Vendors have their own interest that may not always align with your bottom line. Ensure CPG-sponsored promotions are driving extra traffic into your store or adding incremental spending. Good relationships with vendors allow your brand to work with them on promotions and ways to effectively use their funds.
Instead of running a buy-one-get-one-free promotion, you can use these funds in different ways to drive more visits and spend. For example, drive more full-price purchases of an item and in return your customers can earn bonus points toward their next reward.
3. Support from all levels of your organization. Programs succeed when executive buy-in is present. Harnessing the influence that the top of the organization wields reaches all aspects of the program, from motivating general managers to train staff and be accountable for the program metrics in their district to addressing franchisee concerns about discounting. When buy-in is present throughout the entire organization, companies will try new things and continually evolve a strategy that positively affects the business.
Learn more about building a well-designed program and engaging your customers in this eBook: “A Guide to Maximizing Program Impact.”
This post is sponsored by Paytronix