Wouldn’t it be nice to have simple rule in building a rewards program? Sure! But, every business is different. Size, culture, industry, budget, location, and so on, are some of the main,primary,key factors that separate businesses. For instance, gas receipts for Woolworths customers might be more beneficial than getting frequent flyer points on their own. This is because we need to fill our cars up every week. As it follows, we are pressured to shop at the supermarket regularly to get gas receipts. Now then, there happen to be several things you ought to think about when designing and implementing your loyalty program:
- Your target market
- The loyalty program’s objectives
- Make it attractive
- Keep it easy to understand
- Easy to join
- Promote it
To start with, it is crucial that you understand your target market or the customer demographic who purchase from your business regularly. This is vital in all businesses. This allows you to enumerate over the incentives that you can offer and your clientele are likely to appreciate.
Secondly, we need to define the desired outcomes for the loyalty program. How much will you reward to take on how many customers and to increase what percentage of sales? An prime example could be to increase profits by 10% every year after having the loyalty scheme. You can aim for a couple of objectives to begin with, after which you can add or improve them later. Having well-defined outcomes will enable you to appraise the effectiveness of the rewards program and make alterations to improve it. Staying focused on what you are aiming for also makes it easy to design a scheme that is effective.Your shop will reap a lot from a carefully designed loyalty scheme. It encourages sales and allows you to analyse your customers’ behaviour.
So have a go. Let them have what they want. Things are easy when most people come to you for muffins – you can just give them a free one after a few purchases. But promoting planting seeds to all Bunning’s loyal customers will not cut it since hardware stores sell such a broad product range and people are after different things each time. This is why big businesses like Bunnings give out gift cards so customers can choose what to redeem their hard-earned points on.Your rewards scheme must be straight-forward for shoppers to comprehent. If they don’t get it, they will not buy in. You could have one reward level applied to all customers or feature a number of reward levels for different customer demographics with different spending amount. For instance, you might give more rewards to customers who purchase over $2000 at your store in 12 months. The point note is to keep the structure of the rewards program simple to understand for your shoppers.
Punch cards are one of the easiest ways for customers to get on board. The real drawback is you can’t really monitor and analyse your customers’ buying behaviour and evaluate the efficacy of the scheme. Should you require a form for people to register, keep it simple, to the point, and include guides and information about the rewards offering. MazeCard makes it so easy for customers to join, online or using their smartphone.
Finally, the loyalty program cannot yield any real benefits if people don’t know about it. Your business needs to promote it – much like any other products or services your customers use and love. Ensure information pertinent to your rewards scheme is up-to-date, easily obtainable and displayed in the shop and on the web. Have a chat with your customers. Ask if they already are or want to join the program. Ensure your customers are fully aware of the benefits so they will be sure to hop on board.
There are many CRM businesses that will be happy to help you design a rewards program for your business. One emerging new trend is the use of online loyalty programs that don’t require punchcards and track your customers spending online. If you’re an Australian resident, you could turn to MazeCard which is both secure and very convenient. Otherwise, programs such as Punchd (which are less secure) could be the way to go if you’re in the states.
I hope this article provides you a few things to think of before building one.
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