There is no point having a loyalty program if you can’t keep customers engaged with it.
After all, engaged customers are likely to spend more money on your products.
You might have a loyalty program that people have signed up for, but don’t use. Or perhaps, you can’t even get people to join your loyalty program.
This post will talk you through four things you should consider when improving customer engagement with your loyalty program.
How personalised is your loyalty program?
Something to consider is personalisation. The numbers speak for themselves. 86% of consumers believe personalisation has an impact on what they purchase Loyalty programs should be as personable as possible. Why? Because your customers like to feel like they’re important and needed.
A loyalty program is a perfect way to make them feel this way. They’ve signed up for your program, they’re willing to get involved. They’re happy to complete tasks in order to earn points. The least you can do is to make sure their program is tailored to them.
But in order for personalisation to work, your loyalty program needs to be smart. This means you need to choose a system or platform that can correctly collect data to make intelligent decisions based on what the customer might like.
There is no point in offering rewards to people who have no interest in what you’re offering.
Asos’ personal system of showing customers other items they might like has led to people buying not just the one piece they came for, but an entire outfit.
Why shouldn’t we use this principle for our loyalty programs as well?
Variation is key to engagement
Variation comes in two forms, earning and redeeming.
If you want to keep your customers engaged in your loyalty program, create multiple ways for them to earn points.
At LoyaltyLion, we offer style rewards which are a series of different ways for a customer to earn points.
Don’t let spending money be the only way for customers to show their loyalty.
Likewise, if you want to keep your customers engaged, don’t just have one way for them to redeem their points.
Giving people the option to choose from different rewards brings us back to the previous personalisation idea we discussed. You’re giving your customers the option to decide for themselves the reward best suited to them.
If you knew you were only able to redeem free shipping from your loyalty program, what would stop you from seeking out another, cheaper vendor?
Engaged customers like simple loyalty programs
It’s one thing to have a loyalty program but if no one knows about, there is no point having it at all.
Make your loyalty program known to your customers. This could be done on the checkout page, for example.
A small pop-up could say, ‘did you know, for this purchase, if you were to join our loyalty program we’d give you X points and Y points as a bonus. This would be enough points for free shipping on your next purchase. Sign up is free and easy.’
Here, you have clearly laid out the benefits of joining the loyalty program and also removed any friction in their mind that it might be too much hassle to take sign up.
Once people know your loyalty program exists, if you want them to stay engaged, you need to make it simple to use.
Some loyalty programs are too complicated and customers never know what they have to do to get points, or what they can use their points for.
If your loyalty program is complicated, customers might not use and become dormant users.
And if you’re after active customers, engaged in your program, dormant is the last thing you want.
Long term engagement leads to connections
If you’re looking for engaged customers, you need to connect with them.
So many companies overlook the power of communication. By your customers joining your loyalty program, they’re telling you they’d be happy to be contacted by you.
This gives you access to the customers spending the most time and money with your company.
Not jumping at the opportunity to engage with these customers could end with many becoming disengaged and in time, forgetting your loyalty program exists.
Keeping your customers engaged with your loyalty program all boils down to having a good understanding of who your customers are, what they want and then providing them with that.
- Keep your rewards program personalised so customers feel special
- Make sure your loyalty program is easy to join and simple to use
- Try not to just reward money spent.