What’s Next for Customer Loyalty Programs?
Customer Insight Group is dedicated to helping organizations realize the greatest value from their customer base. We provide resources that deliver relevant information on the latest thought leadership regarding loyalty marketing. We want to share with you 30 exciting ideas for loyalty marketing rewards – compelling enough to gain exposure to capture your customers’ attention and participation in successful loyalty marketing programs.
#1 How is your earning rates for loyalty program rewards? Analyze earning rates by segments to understand engagement of target segments.
#2 Have you analyzed your reward program redemption rates. Who redeems? What do they buy? What’s the average sale at redemption?
#3 For your loyalty rewards program, which customer earn the rewards and are not redeeming. Do you have a plan to engage them?
#4 Hard benefits, like rewards, are just one part of the value proposition. What are your soft benefits that build the emotional connection?
#5 Enhance your loyalty program value proposition by tailoring soft benefits to resonate with key growth and retention customer segments.
#6 Tiering your loyalty program gives your customers a reason to give you a greater share of wallet and creates upward migration in spend.
#7 Loyalty benefits should be a mix of hard and soft benefits. Hard benefits reinforce value and soft benefits build emotional connection.
#8 Create an Internal Communications plan for your loyalty program to educate everyone on the value to the organization and to the customer.
#9 Internal communication plan should educate, motivate and engage employees in supporting the loyalty program and company goals.
#10 Internal communication plan for your loyalty program need to include a dashboard of results at the program, customer and employee level.
#11 When creating the internal dashboard, interview key stakeholders to identify customer metrics stakeholders can use to optimize results.
#12 Loyalty program metrics need to include a dashboard of customer, campaign, program across channels, and employee performance.
#13 For a new loyalty program, do qualitative and quantitative research to validate that the value proposition resonates with customers.
#14 Conjoint customer research can be used to create the optimal mix of hard and soft benefits for your loyalty program.
#15 Customers will carry your loyalty card if your customers see value in the program and if they are engaged in your brand.
#16 Include social networks in your customer communications plan. Loyal customers are your best advocates.
#17 Give your loyal customers a better value than you do a prospect. There is nothing worse than being an avid customer and not appreciated.
#18 In B2B employee turnover can significantly impact your customer relationship. Do you have a strategy in place to address this issue?
#19 Always give the customer more than they were expecting. Customers like to be pleasantly surprised and when they are, they shop again.
#20 Follow up on a sale. Acknowledge the customer and they will likely shop with you again. Customers want to be appreciated.
#21 The best way to build a successful loyalty program is to create a solid financial model that can measure projected ROI before launch.
#22 Design your loyalty program based on your objectives: do you want to boost customer retention (the attrition benefit)?
#23 Design your loyalty program based on the objectives: do you want to increase in the amount customers spend (the lift benefit).
#24: Design your loyalty program based on the objectives: increase the velocity and volume of new customers (the acquisition benefit).
#25 Segmentation strategies and execution are critical to avoiding significant reward costs. Increase engagement with the “right” customers.
#26 Motivating incremental purchase behavior begins with matching the right reward to the right target segment at the right time.
#27 Offset rewards program costs by allowing complementing brands to sponsor offers to target growth and retention segments.
#28 With planning and attention to best practices, cause marketing can be a productive component of your overall loyalty strategy.
#29 Causes that evoke customer emotion tend to be the ones that have high mass appeal and add value to customer loyalty programs.
#30 Precision target and segment customers, both in terms of demographics/interest and in rewards offers.
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Filed under: Loyalty Marketing