Loyal customers are not all the same. Some are just regular spenders, while others may be high spenders or even brand ambassadors. A loyalty program is a marketing tool that helps you not only determine the segments of your most valuable customers but also to focus your efforts on motivating other members to join this important group.
Below, you can find a few tips on how to begin this process.
Tip 1: Maybe it's a good time to re-think your definition of the most valuable customer. Usually, companies define this segment based on average spending. Maybe it's worth adding other dimensions such as shopping frequency, profit margin of their purchases, or predicted Customer Lifetime Value (CLV)?
Tip 2: Provide the right incentives. You may do so by introducing a tiering system and assigning additional privileges to certain levels. Try to use the most desirable benefits based on what you know about your customers.
Tip 3: If you want to motivate others to join the tier ladder, prepare a campaign directed to those aspiring members and show them how close they are to achieving a certain status while highlighting all the tier’s benefits.
Tip 4: Acquire new customers from the market and invite them to your program. Knowing the exact profile of your top customers helps you create a targeted campaign that will attract new potential customers.
Every company wants to increase its revenue. A loyalty program acts not only as a retention tool but also allows a business to define and reward their most valuable members. Satisfied and appreciated customers are less price-sensible and motivated to maintain their status (and the benefits that go along!) in a tiered loyalty program.
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