Your 5 Key Takeaways for Accelerating (or Starting) Your Loyalty Program
1. A small group of customers accounts for massive sales on your site. Find those people. Reward them. This is the best takeaway from all loyalty programs.
At its core, loyalty is really that simple. You can get advanced and integrated with it but remember that PEOPLE are buying your product or service and people love being recognized. They can always go to someone else but you want them to think of you first.
2. Convert more people into this small group by rewarding them with new and creative ideas. We’re not talking about a 5% sale or free shipping. Involve your customers in your business in a deep way and they’ll have a vested interest in your success.
Give them behind the scenes access and information, give them a voice in your product development process, give them insight into the trajectory of your business. Notice all of these are free, no sales, no coupons. This doesn’t have to be a monetary reward, your customers want a relationship with your business, not a coupon. Our client Surdyk’s, the leading liquor store in Minnesota, has an incredibly creative loyalty program. When they get specialty or rare bottles, they offer them to their inner-circle customers first. Their customers know Surdyk’s has the best selection and they’re rewarded with small-batch or difficult to find items.
3. We’ll eat our last words. A sale and a coupon can be highly effective in the right spot.
Annex Cloud has pretty awe-inspiring numbers from Bain and Co. “Even if you attain new customer acquisition somehow at a low cost, bringing a newly acquired customer to exactly the same profitability level as an old one would come out to be 16 times more expensive.” Source. If you price out a new customer addition and bring them to the same level of a loyal previous customer, it’s SIGNIFICANTLY more expensive. Invest in your current customer base and offer them a slash in price. It’s more cost-effective than a new customer.
4. Customer loyalty programs don’t have to be ‘$1 spent is 1 point’. Design your own approach that fits your customer best.
When we start a conversation with a potential client, their loyalty program (if they have one!) is almost always ‘$ spent is X point’. While that is a loyalty program, it’s one of the most simple. There are so many options that companies may not have considered. The most common forms fall into one of these 5 categories
- Tiered loyalty (Gold, Silver, Bronze)
- Points based (the same as above)
- Cash rewards (providing cash back for purchases)
- Card Linked (think of a bagel or a coffee shop)
- Fee-based (Pay into the club. Amazon Prime is a good example of this)
These are the common ones but we’d suggest our clients to get creative when designing their program. Reward customers for more interaction on social media, invite them to exclusive events or product trials. We’d love to see a client go outside these categories and tailor their loyalty program more to their customers.
5. Loyalty and Rewards programs are the ultimate low-hanging fruit.
Acquiring new customers costs 6-7x compared to retaining an existing customer. A small investment in customer loyalty can pay huge dividends in 2021. We’ve seen massive upheavals in 2020, it’s time to reinvigorate your customer base in new and creative ways. Loyalty and customer rewards are easy wins to start 2021 off with a solid foundation.
Here are 5 reasons why we love Annex Cloud for our client’s Loyalty Rewards Program
- Product Fit: Diverse yet deep product that is catered to the needs of the brand. Ability to implement complementary solutions like Referral Marketing and User-generated content within the loyalty experience.
- Enterprise readiness: Built to manage global availability and easily scaled to handle high traffic volume while being compliant in security and data privacy.
- Third-party Integrations: They have pre-built third-party integrations with industry-leading marketing services, ecommerce platforms, and point-of-sale system providers that make it faster and seamless to deploy our solutions.
- Customer Success: They are backed by a strong and experienced customer success team that is assigned to every brand to assist them with kick-off all the way until go-live and beyond. Best practice recommendations and marketing strategies are also provided by this team to ensure that the program can reach its full potential.
- Loyalty Experience: They have over 10+ years of experience implementing a gamut of B2C and B2B loyalty programs for different industries. Some of their premier customers include huge brands like Toyota, Philip Morris International, MOL Group, Nu Skin, Henry Schein, Merz, Bed Bath Beyond, Mizuno, Taylormade Golf, Elf Cosmetics, and many more.