Loyalty programs are one of the major factors through which a business can retain loyal customers by gaining the consumers’ trust. As a result, these brand loyalty programs can effectively create brand value. A perfectly planned loyalty program is effective on both online and offline channels and even stretches beyond that to develop an omnichannel consumer experience. Satisfying customers of different age groups and other socioeconomic backgrounds is a critical aspect that needs to be addressed regarding your overall brand equity.
Therefore loyalty rewards programs strengthen your brand image and also help to nurture a long-lasting customer relationship while minimizing the chances of prospects considering your competitor’s brand or product. In addition, the loyal customers in your loyalty program also generate granular consumer profile data, enabling wholly customized and hyper-segmented marketing campaigns.
But in reality, many marketers feel that their brand loyalty programs fail to gain these benefits. More than 40 percent of marketing managers think customers don’t see much value in participating in the offered loyalty program. At the same time, only 13 percent of marketing managers feel that their programs are much more effective at understanding customer behavior. However, more than 67 percent of customers say that their spending behavior can drastically affect and also change due to this ability to earn rewards – thus, loyalty programs significantly affect purchasing.
To enhance the value of customer loyalty programs, marketers should use them to increase customer satisfaction, thereby creating additional value for their brand. Then, they should use meaningful insights from these programs to identify data-driven solutions to address the customers’ pain points.
Let us look at four essential guidelines that any successful and well-planned loyalty program must follow.
Customized Reward Plan
A recent study has shown that customers expect their experience to be more personalized, and modern marketing strategies have made collecting insights about the customer’s behavior, spending experience and other factors easier. Marketers can quickly look at person-level data to understand which communication channels are effective for a particular group of customers. Then, they need to use these channels to motivate customers to visit their online or physical store; furthermore, when they are close to earning a reward, the motivation increases.
Effective Reward Programs
A variety of rewards programs are there that should understand a customer’s mind and psychology which directs a brand to create an effective brand loyalty program per the customer’s need. A customer must feel that your brand actively shares and understands their customer’s values and even feel a sense of acknowledgement for being associated with your brand. Once your customer starts to think that they are being acknowledged, a sense of pride overwhelms them. So it is essential to plan an effective reward program with customized plans to make the customer happy.
Easily Achievable Reward
Suppose a customer feels that rewards are too hard to achieve. In that case, they will slowly lose interest and immediately shift towards other brands offering more lucrative and achievable rewards. So how to understand that? If your customers are not using the points or redeeming the reward points, they are not using your plan. So start to find out the reason by asking for customer feedback. And with these insights, prepare a reward plan that is easy to achieve so that your customers stay interested in your brand.
Another critical aspect is user-friendliness. If your customers cannot understand how your loyalty program works, they will soon lose interest in your brand. That is why opt for some user-friendly loyalty plan that all can understand. And also, try to gamify it to keep your customers interested.
LetsVerify is one of the leading marketing solution providers in India. So, if you plan to create a loyalty rewards program for your brand or want to modify the existing one to gain customers’ interest, contact them to get the best and most affordable solutions.