Monday, 18 February 2013

Thinking of Implementing a Loyalty Scheme - Here's What To Consider



Loyalty schemes can provide numerous benefits when implemented correctly. Research has shown that effective customer retention and customer experience can account for huge increases in profit. 

Here are our top 5 considerations when looking to implement a loyalty scheme. 

1. Be transparent - make sure your customers know what is being offered and what they need to do to achieve a reward.  Keep it simple, nobody has time to decipher a tricky loyalty scheme, regardless of how good the reward is. 

2. Add value - the reward you offer needs to add value to both your customers and you. Sometimes simply offering a discount or something for free will devalue the product or service you are promoting. Consider being more creative, why not try a non-monetary reward?

3. Embrace technology - new technologies allow retailers to be more creative with there loyalty schemes. Look to use other platforms such as social media in conjunction with your offer as a cost effective marketing platform.

4. Use Data -  there is a huge amount of data that can be collected from a loyalty scheme, use it to strategically improve your business. Evaluate when are your busy times, what is your customers purchase frequency, what is your key demographic? What offers do people respond best to and why? The more you are armed with this information, the more you can use it to drive your bottom line.  

5. Don't over rely on your scheme - As great as they are, loyalty schemes are not the sole driver of success in your business. Customer service and product quality still need to be offered at the very highest level. In fact, finding other ways to engage customers outside of your loyalty scheme (for example, sending a message to customers on their birthday) have significant positive effects on your loyalty scheme and your business. 

Above all else, an effective loyalty scheme is an excuse to interact with your customers. Don't forget to broadcast it! 

Email us at hello@loyalli.com is we can help!