In theory, preparing simple promotion is not a complicated task. A loyalty program operator chooses promoted products and external partners, adjusts promotion mechanisms, and specifies the possible incentives. In practice, preparing promotions that achieve the set goals requires a bit more work.
A loyalty program allows brands to communicate with program members in many different ways. In addition to standards sales and information-related campaigns, there is another type of campaign that’s important for the program to run on a continuous basis, which includes program-related communication.
Every loyalty program requires ongoing care and improvements. What are the crucial elements of day-to-day maintenance of the program? Continuous evaluation and maintaining engagement of members. To help you keep up with this constant monitoring and development of your program, we have compiled a list of specific areas to keep an eye on.
Although acquiring new members and earning and burning points are the main goals of a loyalty program, there is one more thing to keep in mind: Key Performance Indicators (KPIs). They help you showcase how your loyalty program is working and if it is delivering a solid return on your marketing investment.
As the ways brands can connect with customers grow, so do customer expectations. It is no longer enough to offer customers a loyalty program that is based solely on transactional points. To gain consumers’ attention, brands must strive to understand their motivations and behaviors to deliver highly customized experiences that engage customers beyond the transaction.
Imagine receiving a simple piece of paper with a “25% off” discount you can use at a physical store. Coupons used to be the most popular way to promote a store or brand, and this how discounts were given out in the past, whether it through the newspaper, mail or in-person distribution.