8 Best Practices for your Loyalty & Rewards Program
Promotional campaigns that reward your customers for their purchases are a great way of increasing purchase frequency and establishing loyalty among your customer base. But these programs need to be promoted in a meaningful way for them to be successful. A consistent and assertive strategy needs to be deployed to attract and engage consumers. Below are the best practices for helping your brand capture the interest of new customers and establish loyalty with existing customers.
1. Use gamification as an innate strategy.
Gamification is a strategy of using game dynamics and mechanics to engage an audience. It is all about understanding the psychological underpinnings of what drives consumer behaviours and participation with CPG brand activities. It leverages intrinsic human motivations to make your program interactive and fun.
2. Don’t make your program complicated.
The goal of the loyalty program must be simple and clear. Make it easy for people to understand the program requirements and benefits.
3. Keep things real.
The rewards that are offered must be attainable and within reach. Customers must believe that the effort they put into collecting points or rewards is worth it.
4. Make your rewards relevant.
To have a high customer retention rate, you have to know what your customers value. In other words, the reward for customer loyalty must be relevant and meaningful to them. Offer unique rewards with value. All rewards should be tailor-made for your customer base.
5. Sweepstakes are your friends.
You can use sweepstakes as a tactic for getting people to sign up for the program. For example, a customer could be entered into a sweepstakes by signing up for your loyalty and rewards program, and existing members can redeem points or be rewarded with a coupon by entering into sweepstakes.
6. Create excitement among your customer base.
Create excitement by switching things up! Change the features of the program from time to time by providing new rewards or new ways to earn points. Like any marketing program, a loyalty and rewards program should be updated to keep customers actively participating.
7. Shout It Out.
Frequent communication is a major key; keeping in touch with customers with information and offers that will appeal to them is important. Direct mail, social media, and email can all help to attract more visits and increase purchase frequency while reminding customers that their membership in your program offers many privileges.
8. Make It Seamless.
Make sure that the workflow of your program isn’t burdensome for your customers. All users should be able to easily understand how your program works and conveniently navigate through your loyalty website.
Create personalized loyalty programs to boost brand awareness and consumer engagement
Brands need to prioritize retaining high-value customers over constantly seeking out new ones, as it increases their customer lifetime value, decreases their customer acquisition costs, and boosts their return on investment. With the right first-party data and consumer insights, marketers can build strong personalization and loyalty strategies for the long run.
With 3 tier logic’s PLATFORM³, brands can design and execute personalized loyalty programs, sweepstakes and contest, gift with purchase promotions, and more. Modules like Contests and Promotions, Points and Gamification, Social Content Sharing, and Data Capture & Analytics give marketers the knowledge and capabilities they need to drive brand engagement and growth. To learn more, book a demo with our team today.
