If you build it (properly), they will come

Is it just me, or are there new loyalty programmes being launched each month into the already cluttered loyalty space? From my local petrol station to large retail chains to my local gym, everyone wants me to sign up for their loyalty programme.

While as a wily consumer, I’m always looking to be rewarded for my business, on closer inspection it seems that some of these so called 'loyalty programmes' aren’t actually building customer loyalty at all! 

Companies need to know how to build a successful loyalty programme. This will not only save the reputation of their brand, but also ensure that their customers keep coming back... 

4 Tips for building a winner loyalty programme

1. Know your audience
   Understand your customer and send messages that are relevant and engaging. Don’t push products you want to sell, but rather what your customer wants to buy! If you can achieve true relevance, then your loyalty programme willstand out from the clutter. A ‘one size fits all’ approach doesn't work.


2. Acknowledge your VIP customers
   Know your top customers and welcome them . . . in store, online or any place they interact with you. Your loyalty members need to feel special. Acknowledge, engage and show that you understand them. Do this well and your VIP customers will find a reason to spend their hard earned cash on your brand.


3. Enrich your members
   'Discounts do not a loyalty programme make' (with a nod to the original proverb). You have to do more than just offer price discounts. Loyal customers are created on more than just price. In fact, loyal customers are most likely notto care about price but rather value personalised service, convenience, or a more pleasurable shopping experience.


4. Predict the future
   Imagine if you could make your customer’s life even more amazing by knowing what they need before they even know it - that would be awesome!
   
   Achieving this requires much thought and data analysis, but wouldn’t it feel great to be offered something you are going to need in the short to medium term future? An effective loyalty program will allow you to collect information on your customer’s buying behaviour, patterns and interests. This way you can pre-empt their need for a product or service.

Perhaps the best approach when it comes to loyalty programmes is to use them to get to know your customers …how much they spend, what kind of promotions they respond to and what they value most. This increases the likelihood of retaining them and ultimately capturing a greater share of their wallet. 

Planning a loyalty programme? We have the expertise to know, acknowledge and enrich your customers through digital messaging. Once you’ve got that right, you’re well on your way to predicting their future needs!



Ross Sibbald
striata.com