Corporate Innovations are regularly asked to consult on driving specific behaviours on behalf of brands and invariably loyalty is a key tick box on the list.
Finding new customers isn’t cheap, however it’s important to remember that increasing loyalty from existing customers isn’t a no-cost option. The reality is that looking after your best customers is a long term investment and will help reduce any flirtations that they might have with the competition.
Our common sense approach to building and launching loyalty programmes is quite pragmatic and user friendly:
- Make registration simple. Members will invariably all be transacting with you, so you should already have most of the details that you need. It’s unnecessary to go through a long winded sign up. Let’s not trip people up straight out of the traps!
- Do this, get that. Complex reward programmes that are overly difficult to understand reduce engagement. By all means build in a little complexity further down the line when the programme population is happily transacting and have bought into the programme. One of my personal favourites is the approach of Wiggle the online triathlon store; they offer 5% or 12% flat discount subject to your spend in the previous 12 months. The more you spend, the more you save!
- What’s the point? Make sure you know what your end game is and start with it in mind. Then build the reward triggers around moving customers to that happy place.
- It’s a love thing. Remember, this isn’t about your company or brand, but the customer experience and how your loyalty programme is going to make your most important customers feel. Wherever possible personalise communications, tailoring content to the end user. And automate comms; it’s nice to receive them in a timely and relevant manner, so automation with considered triggers is important in embracing (but not suffocating!) your customers.
- What’s in it for me? Assuming you aren’t just offering a heightened discount, make the benefits of the programme clear. Make them useful. A little aspiration won’t go amiss here and then make the rewards achievable and easy to redeem. Ever tried spending BA/ Avios points. My point exactly!
- Don’t forget the value of your data. It’s a loyalty programme so you already know it’s for existing customers. Buying a database to get new customers is customer recruitment and a very different activity. You might already have insight into purchase behaviours, previous transactions, what works and what doesn’t; use that and build on it.
- Lastly, keep it simple. Life is complicated enough. Customers don’t need to know how your business operates, the obstacles that you need to overcome; that’s your problem, so give them the best experience that you can and let your systems do the donkey work in the background.
If you would like some more of our common sense thinking related to rewards, recognition and loyalty, please just get in touch.