Does your loyalty program drive revenue? You’ve worked hard on your loyalty program. You know there are many benefits such as: increasing customer lifetime value, retaining existing customers and building customer relationships.
How do you measure the success of your loyalty program?
Is your investment yielding enough return?
You might look at the number of people who have signed up to your loyalty program and be pleased.
It’s one thing to get people to join your loyalty program, but another to get them to use it. And if they’re not using it, you’re not getting any revenue from it.
Remember your customers might be part of multiple loyalty programs.
They might forget they’re even a part of your loyalty program, so make sure it’s simple to understand. If your customers have to keep checking what they need to do to win points and what they can spend the points on, they’ll disengage.
What you can do to bring about revenue
There are three crucial steps you need to take to make sure your loyalty program is bringing your revenue
1) Design your loyalty program, don’t just build
When you decide you want a loyalty program it’s important to know what deals you might want to offer and why.
It’s no good to just build it and hope your customers will turn up and use it the way you want them to.
Like in any transaction, you need to guide your customers to where you want them to go. If you want to put a certain product in front of them, then use your loyalty program to do that.
2) Keep it updated
The online world moves so fast, and as you should already know your customers are always looking and happy to consider a cheaper better option for their items than you can provide.
It’s therefore, imperative if you want to keep your loyalty program full with people using it and bringing you revenue then you need to keep it updated.
This means changing offers that are no longer relevant. It might also mean updating your offers and rewards to match certain seasons or events.
3) Tell people about the loyalty program
Once you’ve done the first two steps, the final important step is to tell people about your loyalty program.
Often people create a really good loyalty program, but no one knows about it. If they don’t know about it, they can’t get on board. If they’re not on board, you’re waving goodbye to revenue.
If you want your loyalty program to bring in revenue then make sure you:
- Plan what you want to achieve from the loyalty program
- Keep it updated with the rhythm of your customers, use the loyalty program to answer their demands
- Make sure your customers know your loyalty program exists and how to join