Why should you invest in a loyalty program? The Nielsen Global Retail Loyalty Sentiment Report gives dozens of reasons why businesses across the world value have well-functioning loyalty programs. If you don’t have one now, you’re missing out on a huge opportunity.
An effective loyalty program will motivate customers to visit frequently and spend more with you during each visit. In addition to revenue generated from a core program, with the data collected, you will be able to deliver relevant, targeted promotions to your loyalty program customers, resulting in an additional source of revenue.
According to the Nielsen Global Retail Loyalty Sentiment Report (NGRLSR) 72% of customers agree that, if all other factors are equal, they’ll buy from a retailer with a loyalty program over one who doesn’t offer a loyalty program. 74% of loyalty program participants said they’re more likely to be repeat customers of businesses 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 product discounts and rebates/cash back rewards. 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 or experiences, exclusive access to sales, or giving to charity.
Flexibility is one of the highest valued elements of customer loyalty programs. They want to be able to access rewards from anywhere and have the flexibility to choose from a range of options. 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.
The NGRLSR gave the following tips for loyalty program success:
- Measure and monitor performance
- Use segmentation tools
- Personalize the shopping experience
- Provide offers customers value
- Differentiate your offering
- Leverage technology wisely
- 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: 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.
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: 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.
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!