How To Create A Customer Loyalty Program In 9 Steps

There are plenty of reasons to launch a customer loyalty program, whether it’s to increased sales or to retain customers. That being said, taking the first step is a whole different story – particularly if you don’t know how to build a loyalty program. Don’t worry about it, we’re here to help.

Ranging from the research phase to advertising, here are 9 steps to get your loyalty promotion ready.

 

customer shopping in a store

Benefits Of A Customer Loyalty Program

 

1. Encourage Customers To Return

With the proper incentives in place, customer loyalty programs can encourage your audience to return to your store and earn their rewards.

 

2. Generate Brand Advocates

Customers are more likely to share their positive experiences with your brand if you put in the time to build relationships and deliver the best possible service.

As a result, you can boost referrals and increase sales for your business. That’s not a bad trade.

 

3. Save Money 

Not only are these programs great for driving sales, but they’re also a cost-effective way of doing so. Compared to sourcing new customers, this tactic is inexpensive to implement and can help encourage repeat sales.

 

4. Encourage New Sales

It’s clear that loyalty programs can be a meaningful way to bring customers back into your store – though did you know it can also encourage sales from new customers too?

A loyalty program can be enough incentive to encourage people to finally shop with your brand if they can sense the value they’re getting in return.

 

a group creating a customer loyalty program

Building A Customer Loyalty Program In 9 Steps

 

Research, Research, Research!

Rather than diving in headfirst, start by doing a bit of research into the various types of loyalty programs out there.

What are the common program models? Is one more effective than others? What sort of incentives should you implement?

Instead of launching a loyalty program for the sake of it, gain a deeper understanding of the concept. Start to piece together a plan that best reflects your industry and brand.

 

Scope The Competition 

You’re unlikely going to be the first person in your industry to take advantage of a customer loyalty program – though you can use this to your benefit.

Check out what sort of programs your competitors are running. What models are they implementing? What are their incentives?

Having an idea of what’s working for other brands can save you time and help you to commit to a strategy that best reflects your industry. Once you have an idea of what’s working for similar brands, you can tailor your loyalty program to suit your business.

 

Establish Your Goals 

After scoping out what your competition is doing, it’s time to focus on your brand and set some goals.

What do you want to achieve through the process? Increased customer retention? Boost your average order value? Having a clear objective will help guide you through this process and encourage your customer loyalty program to succeed.

 

Tailor Your Approach

Now that you’ve got an idea of your program’s purpose, you can breathe a bit of your personality and brand into the concept.

Start off by selecting a model that you think will resonate well with your target audience. For example, a point program is a popular option. This is where your customers spend money to receive a certain amount of points depending on how much money they spent.

There’s also the paid program – which involves your customers paying a fee each month in exchange for exclusive discounts or products.

Once you’ve settled on the loyalty program’s structure, you can brainstorm relevant and valuable incentives that will motivate your audience to join.

 

Create Enticing Rewards 

Why should your customers sign up for your loyalty program? How is it adding value to their experience with your brand?

As you begin brainstorming loyalty incentives, it’s important to keep your target audience in mind. Choose a reward that’s going to motivate them to take advantage of the program.

These rewards can take many shapes and sizes. It could be a free gift, enticing discounts, or anything you feel will resonate with your audience.

 

Streamline The Sign-Up Process

As you launch your loyalty program, you’ll want the sign-up process to be quick and effortless for customers.

A convoluted sign-up sheet with irrelevant pieces of information can be overwhelming, deterring customers from joining the program.

When creating your loyalty program, focus your attention on streamlining this aspect by only asking for information that’s completely necessary. Keep it simple.

 

man standing infront of pictures

Get The Word Out 

As your customer loyalty program takes shape, it’s time to encourage your target audience to sign up. Try starting off with your most loyal customers.

If you’ve already established an email newsletter, work through your email list and let recipients know about the customer loyalty program. Include the sign-up process, incentives, and any other relevant information.

When it comes to attracting your wider audience, social media ads can be a powerful tool. Get the word out with a post or run a few advertisements across your social media channels.

On top of this, try displaying a pop-up ad on your website to let people know about the program before they head to your online store.

 

Keep Customers In The Loop

Just because a customer has signed onto your loyalty program doesn’t mean the process is done and dusted.

Keep your loyal customers in the loop with exclusive promotions or offers involving your loyalty program to keep them engaged. This is where email marketing can prove to be a handy tool.

 

Continue To Grow 

It’s easy to establish a loyalty program, sign on a handful of members, then forget about it altogether. Though to reach your goals and see success with your loyalty strategy, persistence is key.

Continue to get the word out with social media ads, while upgrading incentives to encourage new customers to sign onto the program.

As your customer loyalty program grows, so will the rewards that come along with it.

 

 

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