How to create loyalty with your rewards program
Looking for ways to bolster the bottom line? Then it’s time to seriously consider loyalty.
If you’re facing a competitive environment and you want your customers to choose to do business with you rather than a competitor, you need to consider implementing a loyalty program.
It doesn’t matter whether your business calls it a loyalty program, frequent buyer program, VIP club, discount rewards or something similar – getting serious about yours is paramount if you want to stay at the top of your game.
Why? Because loyalty programs can increase your sales regardless of whether you’re selling shoelaces, shower screens or stationery. They encourage your customers to show business loyalty in exchange for some sort of reward, which can make a significant difference to your annual earnings.
Loyalty programs influence buying behaviour. We know this, and so does the Australian Marketing Institute! Their study revealed that 80% of consumers purchase from companies from which they are a member of.
The research also reveals that customers tend to buy from companies with a loyalty program versus those who don’t. And when faced with choosing two similar products/companies – one with a loyalty program and one without – 55% of consumers tend to buy from the one with a loyalty program.
Start by first questioning what you want the loyalty program to achieve for your business.
Then, it’s about working backwards. Financial benefits are still the most sought-after program benefit, with immediate discounts a popular request from customers. But this is not necessarily the best approach for businesses – anyone can generate profitless sales. Expert advice on how to make the program sustainable is paramount.
And if you’re considering a DIY approach, then think again. Loyalty programs are part science, part art with data being at the centre. So bring in an expert firm that has significant experience in this field to make sure it’s designed in a way that generates profit without costing the earth to implement and run. We’ve developed the IMG self-funding model which allows us to save your marketing budget and run our programs without any outlay.
If your business does have a program in place, then maybe it’s time to dig a bit deeper and see what your customer’s value from their loyalty program. Get an expert opinion on whether you’re meeting their expectations. Find ways to improve what you’ve got.
After all. Just because you have a loyalty program, doesn’t mean it is as effective as it could be. Implementing new innovations to an existing loyalty or rewards program is a great way to avoid apathy among customers.
So whether you’re planning to implement a loyalty program or you already have one in place, give us a call and let us show you the best way to engender loyalty in your business.
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