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Proven Tips To Make Your Customer Loyalty Program More Successful



Proven Tips To Make Your Customer Loyalty Program More Successful

Loyalty programs are everywhere. But while most customers love these programs, are these programs really achieving the target?

Successful loyalty programs lead to good customer engagement so that your customers feel an emotional connection to your brand.

Customer loyalty not only ensures that your customers keep coming back, but they also raise the barrier of switching. This makes sure your customers have a harder time choosing your competitors over you. That means a small price reduction from your competitors won’t have your customers flocking over to them.


Do You Need A Loyalty Program?

Your customers are the most significant assets in your business. After all, no business can thrive without customers. Someone has rightfully said, it’s the customer who pays the wages, not the employers.

And when it comes to customers, there are two things we talk about.

New customer acquisition and customer retention.

Customer acquisition is important because it helps your business grow. But it’s hard and costly.

Customer retention, on the other hand, is far cheaper, requires less effort, and has way more benefits than the former. Do you know about 80% of your sales revenue comes from only 20% of your customers? Retained customers also spend 3 times more than a new customer.

Once you have earned your customer’s loyalty, a little bit of effort will go a long way.

Loyalty programs make your retained customers feel special so that they keep coming back and find it hard to switch to other competitors.

Just implementing a loyalty program is not enough. You need to figure out the best way to make it successful. Here are some tips that can make your program a success.


Make It Easy and Simple To Earn Rewards

Businesses introduce rewards schemes all the time. But most of these rewards are so challenging to earn that very few people bother.

I remember my favorite spice brand asking their customers to collect empty cartons and send them back to their postal address in return for a chance to win in a lucky draw.

There were two things wrong with that loyalty program. First, it was a hassle for customers to gather empty cartons and post them to the company at their own expense. Second, the reward promised wasn’t appealing enough, which we’ll get to in a bit.

To make the program successful, make it easy for customers to earn the reward. Instead of anything ‘physical,’ make it all digital. For example, ask them to leave a review in exchange for a premium. Ask them to share your Facebook page or post something with your hashtag.

This not only makes it easy for customers to earn a reward, but the things they do are beneficial for your business as well. By engaging and sharing on social media, they are spreading the word about your business, which is the best kind of marketing you can invest.

The coupon code you give them in exchange is totally worth it.

Plus, that word of mouth marketing is also so much better than the empty cartons of spice boxes you’ll receive in your mail!


Give Unique and Meaningful Rewards

This brings us to the second problem, usually seen in loyalty programs. The kind of rewards they offer are so meaningless; most people wouldn’t even bother. Like the chance to enter a lucky draw. Why would people go through a hassle to enter a lucky draw they are almost sure they won’t win?

Most customers don’t even like to receive gift hampers as rewards except if they are sure what they are getting in the package. Most of the time, these gift hampers are packed with junk stuff; people don’t even need it.

When choosing a reward, spend some time knowing your customers and see what they would like to be awarded. But if you want to play safe, go with a cash reward, which is proven to make your customers satisfied.


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Combine Loyalty Program with Referral Marketing

The loyalty program works perfectly when partnered with referral marketing. Enjoy a twofold benefit by implementing a refer-a-friend program.

If you have an online store, you can simply install plugins that make it a breeze to implement referral programs and track all the data.

Referral System for WooCommerce is one such plugin that is compatible with the WooCommerce Points and Rewards plugin and allows you to implement a referral program with different options for rewards. You can choose discount coupons of fixed-price or percentage or even loyalty points as rewards.


Promote your Loyalty Program

How good is a loyalty program if nobody knows about it? To make your application successful, spread the word about it on social media, or even paid advertisements. Your loyalty program can not only help you retain customers, but it can also act as a magnet for new customers.

For example, if customers know you have an excellent loyalty program that rewards customers for spending, they might choose you over your competitor just because of that program.


Offer Point-Based Rewards

Point-based rewards have been proven to be a successful and powerful way that keeps customers loyal. If you are giving specific points on every dollar they spend, they are likely to keep coming to you instead of going to your competitor just because of the points they have already earned and the potential to make more.

Points-based rewards work best with tiers. Offer better rewards on higher tiers. For example, you may introduce a gold tier in your business, and if the customer reaches the gold level, they are given more points as rewards as compared to other customers. Gold customers can also be given other rewards like discounts and exclusive coupons.

When introducing reward points, make sure it’s easy for customers to monetize the points. If you are asking them to earn a very high number of points before they can monetize, they won’t even bother.

With these tips, you can make your loyalty program a success.



Read more Marketing related stories in The Weekly Trends magazine.

Zubair is a tech geek who loves technology and writing about it. He also loves to travel and spread knowledge about online security. Work at

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