Time to Invest in a Loyalty Program
Are you still waiting on investing in a loyalty program? The statistics say it’s time to go for it. The Nielsen Global Retail Loyalty Sentiment Report gives businesses across the world numerous reasons to recognize the value of having a loyalty program to increase your company’s success. If you don’t have a loyalty program now, you’ll wish you did by the end of the year.
A good loyalty program will drive your customers to frequently visit your establishment or website and spend more with you during each of their visits.Beyond just revenue generated from a core program, with the information your program allows you to collect, you will be able to deliver relevant, targeted promotions to your most loyalty program customers, resulting in an additional sources of revenue.
Looking at the Nielsen Global Retail Loyalty Sentiment Report (NGRLSR) we see that 72% of customers stated that they would rather buy from a retailer with a loyalty program over one who doesn’t offer one. 74% of loyalty program participants say they’re more likely to be repeat customers of companies that offer loyalty programs — Loyalty programs give businesses greater levels of customer retention. Customers are also more likely to spend more and visit more frequently.
Globally, the top two types of loyalty rewards valued by consumers are rebates/cash back rewards and product discounts. In the United States, rebates were more popular than product discounts. Also, despite the strong value of monetary rewards, loyalty program participants were more strongly affected by non-monetary rewards such as recognition, personalized products, exclusive access to sales, or experiences, or giving to charity.
Flexibility is one of the elements of customer loyalty programs that is most valued. They want to be able to access their rewards from anywhere, at any time, and have the flexibility to choose from a large selection. How loyalty programs integrate technology is another key feature. Participants want to be able to use their mobile devices when engaging with a loyalty program. The top rate loyalty programs offered loyalty mobile apps, integration with digital payment systems, and integration with third-party apps that consolidate loyalty-program information.
Tips for Loyalty Program Success
The NGRLSR gave the following tips for loyalty program success:
- Use segmentation technology
- Differentiate your reward offerings
- Leverage technology strategically
- Personalize your customer’s experience
- Provide offers that customers value
- Monitor and measure performance
- Consider non-monetary rewards
Now that you understand the benefits and best practices of a loyalty program, there are three ways you can set up your programs.
1: Using Loyalty Software:
The benefits of using a prebuilt loyalty management system is that the company who created and developed it has the technology and knowledge to set up and run a brand management program faster than you can and is less expensive than an agency.
2: Hire A Loyalty Program Provider
The first step is to look for an agency that has experience working in the loyalty and incentive fields. Loyalty experts can help create custom and effective loyalty programs. Their expertise in developing programs from start to finish, and manage all the marketing communication surrounding the development will make things far easier.
3: DIY (Do It Yourself):
If you don’t mind spending a good bit of cash and you have more than enough to spare in the way of human resources the do-it-yourself (DIY) route is certainly an option. DIY takes a lot of money and resources, and it also forces you to invest an enormous amount of time into investigating customer behaviors, UX trends, and the how-tos. Unless you have a whole department dedicated to the creation of your loyalty program, this may not be the best option.
At All Digital Rewards, we recommend doing some quick research on which loyalty incentive program solutions will be the best fit your needs so you can get the highest return on investment from your loyalty program. We offer the experience, technology, and rewards to help your loyalty program thrive. If you would like to learn more about creating a successful customer loyalty program to drive engagement and attract new customers, contact our incentive program experts by calling 866-415-7703 or click the “Schedule a Demo” button below!