How to Create a Loyalty Program: 6 Tips to Retain Customers with This Tactic

 

How to create a loyalty program? The 4 fundamental rules!

Loyalty and relationship are words that are always on the rise. And nothing like being always close to someone who knows you deeply, always surprises you and seems to know what you want even before you say it!

Well, if this is love, it also corresponds to some of the ingredients necessary for a successful recipe on how to create a customer loyalty program:

  1. Proximity;
  2. Surprise;
  3. Deep knowledge;
  4. Anticipation of desires.

How to create a loyalty program? The 4 fundamental rules!

Loyalty and relationship are words that are always on the rise. And nothing like being always close to someone who knows you deeply, always surprises you and seems to know what you want even before you say it!

Well, if this is love, it also corresponds to some of the ingredients necessary for a successful recipe on how to create a customer loyalty program:

  1. Proximity;
  2. Surprise;
  3. Deep knowledge;
  4. Anticipation of desires.

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how to create a loyalty program

Proximity is essential in loyalty…

If you want to evolve your relationship with your clients from dating to serious relationship, from serious relationship to engagement and from engagement to marriage, you will have to do much more than print loyalty cards and exchange accumulated points for prizes!

But what is a loyalty program anyway?

Loyalty program is a marketing and sales action specifically created with the objective of retaining and retaining customers through special treatment, prizes, raffles, accumulation of points that can be exchanged for gifts and other strategies that make the customer feel special, recognized by the company and willing to maintain its relationship with it for a long time due to the special and unique way in which it is treated.

Was it clear to you what a loyalty program is?

So, see 3 more important details about this customer retention theme.

1. What is a loyalty program for?

A loyalty program serves to make customers feel unique and make them realize that the company knows them deeply, offering them the advantages and benefits they want and, thus, remaining loyal to the brand, comparing to it for long periods of time.

2. How does a loyalty program work?

A loyalty program works by identifying the customers who buy the most from the company so that they receive extra benefits. This can be done by accumulating points, filling cards with stamps, stamps on cards and drawings via coupon purchased with each purchase, for example.

3. How to design a loyalty program?

To create a loyalty program you must follow these steps: define the profile of your ideal customer; observe your buying behavior; define the rules of the loyalty program; create an electronic customer relationship interface; choose the communication channels and publicize the program; feed your database as the program unfolds; deliver benefits to customers based on their purchases; track the results and adjust directions if necessary.

See more here:  Corporate customers like loyalty plans too

Now that you know what a loyalty program is, do you want to know how to set up a loyalty program for your customers?

So check out our tips and enjoy the best of loyalty!

  • Customer loyalty and CRM are totally related matters. Download our e-book: Guide to CRM Success and learn more about this topic so important to your company.

How to create a loyalty program and fall in love with your customers

To start, let’s talk about 3 magic words that work both in winning the love of your life and your customers:

  • Simplicity
  • Gifts with value for the recipient
  • Creativity

1. Nobody likes complicated people…

That clingy person, exaggeratedly jealous, full of quirks and rules often has difficulties to maintain long-lasting and faithful relationships. And, in reality, there is no way to create a customer loyalty program complicating their lives.

The rules of the program must be clear and objective, with no hard-to-understand minutiae or bureaucracies and millions of forms to fill out.

The best way to do this is to develop a website explaining all the rules, how to accumulate points, validity and an agile interface for redeeming and choosing rewards.

2. Outstanding gifts strengthen relationships!

A Valentine’s gift doesn’t always have to be expensive to be successful. Of course this helps, but showing that you know someone you love, know exactly what that person likes and give them that book she commented on the other day, a lunch at a restaurant she loves or even a simple flower that is. The person’s favorite can make all the difference!

how to create a loyalty program

Rewards in loyalty programs must have value for your customers…

And if you want to know how to make a loyalty program that really works, start by finding out what your customers want to earn. Yes, research is necessary, but if this is a high cost for your company, call a group of clients you already have a good relationship with and hold a meeting, with a few snacks and juices, to find out more about what they value. It’s called the focus group . You can also review your history at the company. As a matter of fact, you will see later that the main asset of a loyalty program is the information collected.

3. Creativity

Nothing worse than a relationship that falls into sameness… it gets boring! So, use your creativity to surprise with different communication, cool names, and neat campaign layouts. But don’t go overboard with very complicated actions, not to go against our first advice: simplicity (with creativity)!

See these three words in more detail in this article from our blog: 3 Success Factors in Customer Loyalty Marketing

4. Know to surprise

There is no way to create a customer loyalty program without information. In this context, CRM software or specific loyalty program software are essential. A customer who is surprised by the right offer, the way he wanted and at the right time to close the purchase, will certainly see advantages in this relationship! For this, you must always know how to answer these questions:

  • What product (or service) does your customer want?
  • What price do you want to pay?
  • When do you want to buy?
  • How do you want to buy, through which channel?

And this must be done for each type, cluster or group of customers segmented in your base… Yes, without information technology it will be very difficult to retain customers.

how to create a loyalty program

Anticipate your customers’ wishes and surprise them

That’s what we said before: everyone wants to notice that the other knows him deeply, cares about him and anticipates his needs and desires, whether in love or in customer loyalty.

See our post with some more information about it: Is there loyalty without loyalty program software?

5. Showing everyone that you are in a serious relationship…

Of course, this is a joke that makes reference to Facebook, but your company needs to disclose how serious it is for you to relate well with customers.

Evidently the best cost-benefit ratio for small and medium-sized companies to publicize their customer loyalty program are social networks, blogs and, of course, your company’s website and the loyalty program.

And be aware: this is also an excellent service channel, the so-called SAC 2.0, in which you can monitor, relate and interact with your customers in a much more natural way and with much more effective effects than other “cold” channels. Such as a telephone SAC, emails and even chats.

food-couple-sweet-married

Past role relationship, the first step is to legalize everything

6. Past role relationship

When the relationship is really serious, at some point the lovebirds decide to seal their marriage… in the case of relationship marketing, unlike relationships between couples, the first step is to legalize everything, before starting to attract, conquer and retain customers.

And it is highly advisable that you hire a lawyer who specializes in the matter to avoid any problems in your loyalty program to attract clients.

Eventually, some companies have a legal department that can handle this. In any case, always respond to customer complaints and try to solve problems as best you can through your service channels.

Now that you know how to set up a customer loyalty program, why not take the opportunity to strengthen this relationship?

The sales process is the vehicle that takes a customer to closing and the follow-up is the fuel. Understand how to put follow-up into practice at each stage of the sale.

Another way to increase your sales is with an internal sales incentive program for your salespeople.