How A Customer Loyalty Program Can Benefit Your Business

A comprehensive marketing campaign should involve a variety of strategies to enhance the visibility of your business, products and services. Putting all your eggs in one basket will limit your exposure to a specific market segment no matter how much money you pour into the singular advertising strategy. It is even more important for small business owners to broaden the scope of their marketing campaigns and implement a customer program.

When designing a customer loyalty program with, you should keep the following factors in mind:

1. The Cost

An effective customer loyalty program is a great way to maintain an existing client base as well as to encourage new customers to opt for your products or service over those offered by your direct competitors. The aim of a loyalty program is to actuate repeated purchases using attractive incentives. However, the cost of these incentives should never exceed the value of the loyalty program.

Incentives don’t have to be highly expensive or eat into your profits to work, but rather need to create the perception of added value to your customers. A good way to identify incentives that have a perceived value is to know your specific market segment and aim the loyalty program at these people.

2. Simplicity

Complicated loyalty programs can have an adverse effect on your marketing campaign. The more time and effort your customer needs to put into interacting with the loyalty program, the less likely they will be to use the incentives on offer. Make sure that the process for joining the program is simple and access to the benefits and incentives is easy. If you find that only a small percentage of your existing customers are taking part in the loyalty program, you may need to revise your strategy.

3. Learn From Example

Follow the example of large companies and corporations who have successfully integrated a loyalty program into their marketing strategy. Using just some of their techniques should ensure that your loyalty program has the same success. For example, retail outlets using a point system to provide their loyal customers with rewards results in hundreds of thousands of customers repeating purchases in an effort to collect the rewards on offer.

4. Loyalty System Management

It is essential to ensure that the loyalty program is managed effectively and that your customers receive the incentives or rewards that are due to them, when they are due. Once again, you need to simplify your strategy to ensure it is easy to manage and that administering the program won’t cost you extensive time, resources and money.

Automated systems that require minimum maintenance are the most cost effective solution. Integrating an automated loyalty program may be more expensive at the outset, but will save you in the long run. You should also limit the collection time-frame to minimize management and cost concerns.

5. Create Awareness

The fastest way to a failed loyalty program is a lack of exposure. You need to make both your existing customers and potential customers aware that the loyalty program exists and how joining the program will benefit them. Include the information in an e-mail or text messaging marketing campaign and ensure that they information is readily available on your website.