Amazon.co.uk Widgets Learn how to create a Loyalty Program (which works)

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How to build a Loyalty Program that works

Loyalty Programs Explained

Loyalty programs provide the infrastructure or platform which measures every profitable transaction (normally a purchase of some sort) that a customer makes with you. The platform then entitles the customer to claim their choice of reward. These rewards will have been carefully selected to be appealing and motivational for your customer base to encourage them to spend even more with you. This symbiotic relationship engenders customer loyalty. 

Loyalty Program Rewards Management

The rewards are what we call content and they can take the form of:

  • Discounts or Freebies with you or complementary third parties

  • Exclusive events or early access to new lines etc.

  • Other Experiences - some that 'money can't buy' 

  • The chance to win appealing prizes

  • Branded Merchandise or High-Value Goods or even Travel

So now we know what Loyalty Programs are all about... 

What are the benefits of customer loyalty?

Enlightened, successful businesses take loyalty very seriously. Whilst the rest of the herd spend a fortune chasing new customers, the smart marketer sets up their customer proposition to encourage loyalty every step of the way. The benefits of a well-constructed loyalty program are compelling:

  

  • It is between 5x and 25x cheaper to retain a customer than win a new one, yet most businesses focus all their effort on acquisition 

  • Loyal customers spend 31% more with you

  • A good loyalty scheme can deliver 500% ROI (revenue generated Vs cost of implementation)

  • Retention rates of 5% are worth between 25-95% boost to profits

For more stats check out this infographic:

Want to know even more about loyalty? Noah Fleming has written a fascinating book on the subject: 'Ever Green: Cultivate the enduring customer loyalty that keeps your business thriving'

Features

These are the features Mosaic would recommend for a successful loyalty program:

  1. Customisable content which you can plug-in and update whenever you want without incurring annoying web development charges

  2. Achievable but sustainable points model - you want customers to be able to claim rewards without breaking the bank

  3. Seamless integration with your sales reports/channels to ensure customer accounts are up to date (this is not necessary if the customer manually enters a proof of purchase) 

  4. Customer Account Admin to allow you to quickly and easily resolve customer queries 

  5. CRM built-in - with so many marketing messages competing for their attention, customers need reminding that your loyalty program is there, e.g. 'Only 100 more points needed until you earn X' 

  6. Pay to  Top-up - not many programs have this as standard, but why not give customers the option to 'pay the difference' if they really want to have one of your rewards?

 

If your customer loyalty program doesn't do all this, you need one that does!

Choosing Loyalty Program Content

Our golden rules for creating content for a loyalty and benefits programme are:

a) Relevance - less is more when it comes to quality of content

b) Attainability - rewards should be structured so there's something which appeals across all tiers of the programme

c) On-brand - content should reinforce your brand values not contradict them

d) Appeal - it goes without saying that your rewards need to be compelling, aspirational and of suitable quality

Local partner offer recruit

Mix National Retailers, leisure and lifestyle offers and add extra value for heavy users with Premiums and Branded Merchandise. Where applicable, the addition of targeted locally recruited offers can elevate your programme to another level. Recognised local businesses in your scheme show that you have a good understanding of your customer's needs.

Communications - remind, reinforce, re-engage

No member benefits platform or loyalty scheme will make any difference to your business if no-one knows about it. We all lead busy lives and have 101 demands on our attention. If you don't tell people your scheme exists it won't get used and it'll end up as a 'nice to have' but unproductive asset. With our platform, a scheduled communications programme is built into the system from the outset, to ensure everyone knows their eligible. 

Keep content fresh

To give reasons to come back again and again, Update content from time to time, add new tactical partnerships or offers and regular competitions and games to add an extra level of excitement.​

Loyalty Program examples

These are just a few of the Loyalty Programs that we've worked on from delivering third party discount offers, handling and fulfilling branded merchandise through to creating and managing the entire platform.

PG tips Cuppa Club

A loyalty campaign for the UK's most popular tea brand offering loyal customers the opportunity to claim for 2 for 1 Afternoon Tea and Oliver Bonas tea sets.

In it for the long haul

A successful loyalty programme is not a casual undertaking. You need to be in it for the long haul. But, if you give it the commitment it deserves, populate it with the right content and make it integral to your brand communications, it won't just be rewarding for your customers; it'll deliver handsome returns for your business too.

To find out more or to discuss your loyalty benefits, call us on 01865 877711 or email us by clicking here.