6 tips to optimize your loyalty program performance
Consumers become attached not only to a product itself but more importantly, to the additional values that a company is willing to provide them with. What are these values, why are they so important, and how can they be provided through a loyalty program? You will find answers to these and other important questions in this article.
Customers are more than just numbers – they need to be treated in a way that provides them with the real value of your product and services. The best way to do this is to know your client well, understand their needs (and wants!) and offer up a value that really adds something. You'll be surprised how much customers will remember the things you give them that go above and beyond – it can make all the difference.
Yes, it always starts with creating a product and service that helps solve customers' problems or meet their needs.But to stand out from the competition and increase brand awareness, you need to deliver additional value in the form of an excellent shopping experience across all channels, along with an amazing after-sales experience that makes customers want to come back to you for future purchases.With a solid loyalty program, you can build trust among your customers and work toward your long-term success.
How can you optimize your loyalty program?
There are many ways to build customer trust and loyalty. Building emotional connections and long-term relationships with your customers is the most effective way, but it won’t happen overnight. It takes time and consistency. The following six practical tips will help you get started on the path to building trust with your customers today:
1.Reward new users who have just joined your in-app loyalty program
It's very important to engage new users who have just joined your in-app loyalty program and encourage them to make purchases. For this purpose, you can use a push notification that will automatically notify them about a promotion in the application that will give them a discount on their first purchase.This can lead to a significant increase in revenue, and greater customer satisfaction, which will increase the number of returning customers and referrals.
To learn more about how to create a promotion for new loyalty program members and a workflow that will send a mobile push notification with information about a special promotion in the mobile app, check out this Use Case.
2.Reward loyalty program members with additional loyalty points for completing custom activities
Award additional points for purchases from a specific category during a specific time period
Sales motivate your customers to spend more, which already works well. But you can do more than that. You can promote special sales opportunities. The pre-Christmas period is a very suitable time for temporary campaigns to diversify your basic loyalty programs, as it usually works well with your customers who need to buy a gift. You can run a special, time-limited promotion on a selected product category on the weekend just before Christmas, for the purchase of which the customer can earn twice as many points.
If you want to learn how to implement this scenario in your business, check out this Use Case, which describes the process in detail.
Run campaigns that enable you to collect additional loyalty points for the fastest buyers
Synerise offers endless possibilities for creating business loyalty scenarios. One of them may be a campaign that ends after a specific number of redemptions and revokes every day. It can increase traffic to your mobile app, encouraging customers to check the available offers more often and creating a FOMO effect from missing out on valuable deals.
We encourage you to check out this Use Case, which describes a scenario that awards customers with an additional 1500 loyalty points for the purchase of a soda. The promotion works every day for the first 1000 buyers. The mechanism controls the number of purchases and informs the mobile app user if they can still get the additional points or if they are late and need to try again on another day.
Award loyalty points for reaching a specific number of transactions
You can encourage your customers to increase their purchases by associating them with a reward. For example, points can be awarded for making a certain number of transactions within a certain period, which helps encourage customers to spend more and increase the number of purchased products. What's more, using this mechanism in the FMCG industry, awarding points for regular purchases of specific products, can develop a new habit in customers' daily routine.
Check out this use case to learn more about this scenario.
3.Remind about the balance of loyalty program points
It’s no secret. So many loyalty program participants let their points go to waste, either because they forget about them or don’t have time to redeem them. You know what your customers need to be reminded of, so why not take the initiative to help them out? Remind your customers when their points expire to encourage them to “burn” them while personalizing this message to the individual customer.
Check out this Use Case that describes the process of creating a reminder to customers about the balance of loyalty points they have in their account and the time left until points expire using an in-app message.
4. Create promotions based on basket value information
To maximize profits, you need to make every customer feel like they're getting special attention. Being able to easily and automatically trigger promotions for your most loyal customers based on the value of their shopping cart ensures that you both increase their average cart value and take extra care of their needs.
Check out this use case with a scenario describing the creation of a promotion for loyalty program members, who will receive a specific product for free when the value of their shopping cart exceeds a certain value.
5. Remind customers of upcoming purchases
It's easy to forget when you've never had a reminder. Many vendors provide a great experience, but some are missing important little reminders that help customers stay engaged with your brand. You can predict the timing of a customer's next recurring purchase by reminding of an upcoming purchase and encouraging them to return more often for those products in your store.
Check out this Use Case to learn how to predict the time of the next recurring purchase and send a message reminding the customer of an upcoming purchase need.
6. Exclude certain product categories from rewarding loyalty points
When launching a loyalty program, you might have specific business cases that require certain adjustments to the program itself. An example of such a scenario might be the need to exclude certain product categories from loyalty points accrual for a particular campaign.
You can check this use case that describes the process of how you can create such exclusion by making minor modifications to an already created points scheme described in this use case.
You can also create such exclusion without using the loyalty points scheme, but instead, create a workflow that also allows you to exclude specific product categories from loyalty point accrual. You can explore such a scenario in this use case.
A loyalty program is a great way to thank loyal customers, reward positive behavior and deliver a better overall customer experience, which we all know drives customer satisfaction, happiness and loyalty.If you're not yet using an effective loyalty program, it's not too late to start! Get inspired by the scenarios described in this article and enhance your customers' experience with new opportunities and activities they will admire.
To get started on your loyalty program, you can read our Use Case on Loyalty Program Basics, which outlines the basic scheme for building a loyalty program, the essential first step you need to take at the beginning if you want to charge points for purchased products.