5 Simple Loyalty Tactics Most Businesses Fall Short On
The loyalty landscape has changed greatly over the past few years. According to a Capgemeni Consulting report, the average household belongs to over 21 loyalty programs and actively uses 44% of these memberships. Moreover, in 2013, 85% of millennials held a negative sentiment towards loyalty programs. What are more than half of these companies going wrong with their loyalty programs? We’ve compiled a list of five simple solutions to incorporate into your brand’s loyalty strategy.
Customer appreciation goes a long way. By correlating rewards points with purchase amounts, customers are given incentive to spend the extra dollar and feel appreciated when doing so. Giving rewards based on purchases as opposed to transactions instills a sense of recognition and appreciation in the customer and, in turn, increases the perceived value of staying faithful to your brand.
By offering these transaction perks, customers are more likely to share their good experiences with their social circles. When people share a good experience, others will be willing to experience your brand. Furthermore, a personal recommendation is much more appealing than an advertisement – and undeniably less expensive.
#2. Mobile Integration
Customers are looking for a simple, painless way to collect and redeem points at the counter. Capgemeni reported that 33% of customers did not feel loyalty programs were adequately integrated with their mobile app. Offering a seamless experience that carries over from the mobile phone to the cash register saves everyone the headache.
#3. Location-based Benefits
Offering customers various benefits from store-to-store is easier now than ever. Geo-fencing technology allows businesses to push offers at individual stores based on the customer’s location.
By pushing location-based offers, companies can use push notifications to notify customers of deals based upon beacons set up at each store. This process reminds the customer of the brand by promoting offers at stores closest to them.
#4. Active Listening
Customers have a voice, and that voice matters a lot. Listen! Opening up platforms that allow customers to express their thoughts and feelings about your brand is priceless. It opens up an opportunity for engagement and discussion, and can make an impression on other customers.
93% of customer opinions on social media regarding retailers were negative. This number may be daunting, but it’s a huge opportunity to respond to customers, gather their opinions and make amends. People are always more prone to share a bad experience with a good one, so it’s crucial that you correct yourself before you wreck yourself (I’m sorry, we had to)!
Responding to dissatisfaction shows customers that you care about their experience and that you’re actively trying to reconcile the relationship.
#5. Customer Appreciation
A loyalty program is not a one-way street. Customers make a promise to return to you for business while you return the favor to provide them a better value.
Less than 25% of companies acknowledge customers for participating in activities outside of making a purchase. Liking a Facebook page, taking surveys, downloading the mobile app and interacting with the company are all gateways to start building a better relationship with the customer. Offering rewards for these gestures gives customers the motivation to keep coming back.
Source: Capgemeni Report Download PDF