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3 Tips to Improve Your Loyalty Program

3 Tips for Customer Loyalty

If your loyalty program is lacking luster, it’s likely time for an overhaul or at least a close inspection.

So, you have a loyalty program, but:

  • It’s not attracting new members
  • Its members are not as active as you’d like
  • No one knows about it


Your program is dying on the vine, and it’s top management’s fault. If it’s not top of mind for managers, it won’t be for anyone else, certainly not customers.

Successful loyalty programs are big. Sure, they have plenty of members, but they are vibrant and enticing to customers. Here are three ways to improve your program:

 

1. Devote Time To It

 

Cultivating customer loyalty is a strategy. Retaining existing customers is less expensive than finding new ones, so it’s worth investing the time and effort into making them feel special.

Define specific goals for the program: Do you want to increase memberships? Boost members’ sales? Only then can you forge a roadmap to make those goals a reality.

 

2. Improve Your Customer Service

 

No one wants to be loyal to a place that doesn’t treat them well.

If your customer service isn’t top notch, ask yourself, “Why would anyone return?” Terrific service lays the groundwork for customer loyalty.

73% of consumers say friendly customer service reps can make them fall in love with a brand, according to RightNow.

Furthermore, providing a superior experience not only helps to retain that customer but also to grow your base, because consumers with positive experiences tend to recommend the brand to others.

 

3. Go Big

 

Let’s face it: The value proposition must be extremely compelling.

Many of your competitors have loyalty programs. And if they don’t, they might just be offering something you can’t: Lower pricing, free shipping, certain brands, etc.

Grab Stats notes that the average U.S. household belongs to more than 18 programs, but is active in only 8.4. Therefore, your loyalty program must stand out and offer something irresistible.

Sephora members, for example, earn points with each purchase that they can redeem for rewards. The program is tiered depending on the dollar value of customers’ annual purchases. Spending more is an incentive to get free products as well as entry into exclusive events.

What differentiates a great loyalty program from others is that customers are eager – excited, even – to join a program that meets their needs.

The day someone asks an associate to join your program without being coaxed is the day you know you’ve hit on a winning formula.

But customers’ tastes change. So enjoy the winning formula while you can – and keep innovating.

 
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