Would you like to delight loyal customers you to support them but also to them keep closer to you more; Then you have to include them in your strategy customer reward programs.
You may be wondering what it is, how do they work, which one suits you. Keep reading because you will find what you learn very interesting and you can apply.
What are customer loyalty programs?;
Customer reward programs(the loyalty programs customers or loyalty programs)-as you might already know from the name- have to do with her reward of your customers for their stay and loyalty to your business. It is one powerful tool which can turn ordinary customers into dedicated and loyal customers, to strengthen your bonds with them and of course increase your sales as these customers will return to you again and again.
There are different programs you can put in place depending on what suits your business.
How to choose the best customer loyalty programs:
Initially, let's look at some simple practices for choosing the best customer reward programs or loyalty program rewards as it is called in English.
Deliver value to your customers
Your customers must have incentives to participate in the rewards program, therefore choose rewards that will them arouse interest and want to enjoy. The choice of rewards should aligns with regular shopping habits their. Your reward with additional products, it's a smart choice.
For example, if you have a coffee shop, a free coffee for each 6 coffees that your customer will have already bought, it can serve as a reward for liking you. This can be done through a card where a mark will be entered each time he buys coffee or with someone application with NFC system.
Consider to personalize the rewards you offer each customer based on their shopping needs and preferences.
Make your customer feel unique
Show the customer the special place that he holds for you because of his devotion.
For example, could you offer discounts in your products, credits for his next purchase, free products, free shipping the exclusive access to discounts as a reward.
Caution! It shouldn't be difficult for the customer to earn the reward. Consider activating some items as soon as he signs up, to activate his motivation.
also, do a separation of VIP customers. These may be those who make bulk purchases from you or spend large sums. Consider giving them exclusive products or access to special events and experiences.
Make sure the rewards are enticing for customers and cost effective for you.
The financial return your rewards program will have for your business will depend on how you structure your loyalty program. For example, how many purchases it takes for the customer to earn a certain reward; You will be rewarded for every purchase; Keep a balance.
Now, let's see which rewards programs you can follow, bearing in mind all the above. These programs are the most popular and customers love them.
Customer Reward Programs
1. Free products
If not the most popular, definitely one of the most popular customer programs. These programs work very well in food and beauty areas, as well as in other industries where the smaller, more frequent purchases are the norm.
Who doesn't love free stuff; And when the free item is his favorite sandwich, drink or other product; Such programs give additional incentives to already committed customers who not only buy but mthey enthusiastically share their experience with their circle. This means potentially other potential customers for you.
These programs usually work with the accumulation of points which the customer collects and can redeem them for free products. Points are easy to redeem for online purchases or through apps. You may have noticed this yourself when shopping at online pharmacies or food ordering platforms.
2. Cash back or credits
Cash back and credits are also popular rewards(usually, loyalty programs treat these two rewards almost identically). For each specific amount spent by the customer, gets credits for refund or use of these credits in the next purchase.
The classic you may have seen: "For every €200 you spend, earn €10 cashback/credit".
Valuable discounts on your products or services will motivate your customers to keep coming back to your business. The trick, however, is to limit your publicly available discounts and give it privileges better discounts to your program members.
also, consider sending personalized discount coupons about the products and product categories that each customer tends to buy the most. We've said it before, customers love this personalized approach, especially when you mention them by name!
4. Birthday Gifts/Surprises
Offering your customers a gift on their birthday is a great way to treat them to feel valued and cared for. For you, on the other hand, the customer sharing their birthday with you is valuable demographic.
Sometimes these birthday surprises are free products, discounts or instant cash back. Choose what works best for your brand. Also keep the birthday present as a surprise, where customers only find out what it is when they receive it.
5. Exclusivity in products and services / Exclusive privileges
Some customer loyalty programs give their members access to exclusive benefits. Usually these members receive e-mails or other notifications about the particular benefits, therefore they are the only ones who can benefit from this confidential information.
In other cases (as with Amazon Prime Day), everyone can find out about the discounts available to members of the loyalty program, but only members can redeem these benefits. With this tactic you will motivate those who are not already members to become members.
6. Free shipping
Free shipping is another powerful loyalty program perk. In fact, some companies not only offer free shipping but also make sure that the delivery is made directly, sometimes her too same day.
Caution! Many businesses consider free shipping to be what sets them apart from the competition. We clarify that not valid! But on the contrary when this is given as reward already engaged customers then it matters!
7. Partnership benefits
Such customer reward programs offer rewards for shopping at multiple partner businesses under the same umbrella. Members of these rewards programs can earn points for purchases at many businesses. All these points are collected in one place and customers can redeem them at any of these businesses they want.
Possibly among the most well-known programs that give these privileges are the credit card programs where they give their holders the opportunity to redeem the points they have accumulated at various businesses.
8. Exclusive or limited products
Many companies release a product in limited pieces the limited circulation and they give it exclusively to their members. Usually such programs are used by technology and clothing companies. For example earbuds in a certain color which are only available for loyal customers.
9. VIP experiences
THE offering exclusive experiences it's another way to reward your best customers and make your brand even stronger. The key is customize these experiences to fit your brand.
For example, some fashion companies allow their members to attend their shows and events.
10. Exclusive first test
Letting your most loyal and enthusiastic customers try your new products first is one amazing privilege that creates unique advantages for your business.
Your best customers are more engaged and they want to see and experience your success with you. So, is the best people with which you can share your latest products, before you release them to the public.
Think how special these customers will feel!
Many times they gladly give you and feedback for these products, to help you make your brand better than ever.
Such programs use cosmetic companies as they know the power of early access and exclusivity before the product reaches others. It's a good idea to reserve such perks only for your top members.
11. Charitable donations
Sometimes, the best reward is the offer. Including a social character in the reward program gives a strong incentive to customers. It appeals to their values and ethics and reinforces their desire to shop from socially conscious brands.
It is especially effective if these supply items are aligned with your brand mission and values.
For example, you could have part of the proceeds from the sale of your products go to a charity. Or consider offering program members the possibility of choice among many charities for donations.
12. Benefits through mobile phone applications
Some brands have loyalty programs that take advantage of all the time we spend on our phones. They offer exclusive privileges through the use of their applications, to make it more convenient and easy to buy through them.
For example online booking companies or clothing companies unlock exclusive prices for those using their apps.
13. Participation in exclusive competitions
It is one of the programs used by many businesses to entice users to make a purchase or to take an action such as signing up for an email list..
The bad thing is that not everyone is able to get benefits from this program as the benefits are applicable to the winners of the contest. However there are customers for whom one contest or something containing one element of risk it will trigger their desire to become a member of your business program.
Caution! THE contest to concern your already loyal customers. Also yes repeat contests at intervals so that more people can enjoy the benefits you give them.
Now that you know how much you can offer your loyal customers maybe it's time to start rewarding them;
Select them incentives that will work better for your business customers and rate what these are that interest you and will return sales to you from existing as well as from new customers who will want to become your members.
The situation is win-win so whichever rewards program you choose, you definitely won't miss it!