How to Set up a Successful Loyalty Program
Most transactions should be rewarded.About 80% of all purchase transactions should somehow qualify for a reward. Your loyalty program must be engaging, not discouraging – and create a positive perception of your brand.
Easy-to-reach first reward.The first reward should be given to most of your members in a short time after enrollment, before members get disengaged and forget why they are there.
Choose rewards that matter.
Members experience greater satisfaction when the available rewards are meaningful. Your customers have expressed their loyalty to you … so now it’s your turn.
Make it easy to sign-up.
If the enrollment process is too complicated, customers will refrain from participating in the loyalty program. Make sure to include as few steps as possible in the enrollment process.
Keep it simple.
Points are the most common approach to structuring a loyalty program. The concept is simple enough. Your customers earn reward points which they can spend on some type of reward. This is simple in theory, but companies sometimes sabotage their own program by making the program far more complicated than it needs to be.
Once you’ve set up your loyalty program, make sure you promote it to your customers. Convince them that you introduced it for their benefit and convenience.