The Types of Engagement
Points based system
This is the most common loyalty program methodology. Frequent customers earn points, which translate into some type of reward. Whether it’s a discount, a freebie, or special customer treatment, customers work toward a certain amount of points to redeem their reward.
Where many companies falter in this method, however, is making the relationship between points and tangible rewards complex and confusing.
“Fourteen points equals one pound, and twenty pounds earn 50% off your next purchase in April!”
That’s not rewarding. That’s a headache.
If you opt for a points-based loyalty program, keep the conversions simple and intuitive.
Although a points system is perhaps the most common form of loyalty programs, it isn’t necessarily applicable to every business type. It works best for businesses that encourage frequent, short-term purchases, like Boloco.
non monetary benefits
Truly understanding your customer means understanding their values and sense of worth, and shared valued have a huge impact on if a customer will be loyal to a brand. In fact, CeB surveyed consumers on customer loyalty and found that customers were loyal “not to companies, but to beliefs.”
Depending on your industry, your customers may find more value in non-monetary or discounted rewards. While any company can offer promotional coupons and discount codes if they want to, businesses that can provide value to the customer in ways other than pounds and pence have a unique opportunity to connect with their audience.
Who doesn’t love a good game? Turn your loyalty program into a game to encourage repeat customers and — depending on the type of game you choose — help solidify your brand’s image.
With any contest or sweepstakes, though, you run the risk of having customers feel like your company is jerking them around to win business. To mitigate this risk, it’s important to make customers feel like you’re not duping them out of rewards.The odds should be no lower than 25%, and the purchase requirements to play should be attainable. Also, be sure your company’s legal department is fully informed and on-board before you make your contest public.
When executed properly, this type of program could work for almost any type of company — even an off-the-beaten-path B2B company. If your audience enjoys having a little fun and purchases frequently, this type of program can make the buying process both fun and engaging.
Be more inbound
Be more inbound with your marketing and use your existing database to move existing candidates and up sell your existing clients.
Not sure if this is right for you?
Your customers are loyal and they purchase from you on a regular basis. However, you are concerned they may leave you for your competitors, or may even use your competitors from time to time without your knowledge.
Understanding why your customers currently purchase from you is the most important thing. It may be there are multiple reasons.
Your existing customers have purchase from either once or multiple times over the years. However, you want to increase the frequency of these purchases.
Understanding trends within you existing customers and their frequency. We then look to segment your existing customers and define their habits. This creates the basis for the up selling process.
Your existing customers are loyal to a specific product, they use it regularly and appear to be content. However, you struggle to provide the cross selling opportunity to further engage these customers with your organisation.
You need to identify key identifiers within the behaviour of your existign customers and the clear connection between the existing product and alternative products you offer.