Friday, 5 April 2013
Opinion: What Makes a Successful Loyalty Scheme?
A few years ago, my wallet was filled with a myriad of cards. Loyalty cards made up the majority of them, with a few token debit, credit and those of the business variety.
Like many others I'm sure, I suffered from a condition where I was unable to refuse joining a program or club that may either save me money or bring me 'exclusive' rewards. Well, everyone likes to save money don't they, how hard could it be to keep up with all the rules of these schemes?
Harder than one would think it seems, some of the cards allowed you to earn points, others to get stamps on a card and a few even tied rewards to the debit or credit card I used to make a payment.
However, after a short period of diligently trying to keep up with them all, only a few remained in constant use.
This got me thinking, what makes a successful loyalty scheme?
Do you have a loyalty card because you shop in that particular retaier anyway and you may as well save money?
Do you have loyalty cards from every store you've visited, just in case?
Or is there more it?
Why are some loyalty schemes more successful than others, a recent article by the Wise Marketer highlighted some very interested facts.
According to a recent study, the 3 main factors of successful loyalty scheme are -
1. How fast a consumer can earn rewards
Obvious, but let's face facts, none of us have the patience to wait a year to get a free ticket for one to paris.
2. What consumers can spend them on
If we/ve been loyal to a store or brand, surely they can't dictate what I spend my reward on can they?
3. Relevant communication based on purchase behaviour
Personalisation is key, Amazon have proven that a well placed add spikes interest. This idea should sit at the very heart of a loyalty scheme, sometimes we all need a little encouragement to spend in new areas.
So, taking into consideration these facts, I drew a conclusion, one that we have based the development of Loyalli;
When constructing a loyalty scheme, its key to remember that to create genuine value for YOU and your CUSTOMERS you need to make things simple.
- Don't make rewards unachievable
- Offer what people want, or even better, offer anything as a reward!
- And finally, pay attention to what each customer likes and remind them from time to time.
Get in touch if we can help!