Is Your Loyalty Program the Best It Can Be?
Loyalty programs have been around since 1929, when Betty Crocker launched the first one, reports Kissmetrics Blog. Loyalty programs offer a way to bring in new customers and strengthen your ties to existing ones.
Not every loyalty program is right for every organization or venue. You have to choose the one that fits you. Below, Kissmetrics highlights several ways you can foster customer loyalty:
“Focus on Long-Term Benefits, Not Just Short-Term Gains
The best loyalty programs reward customers for their purchases over the long term. According to a 2015 survey from Colloquy, marketers were asked about how they split their acquisition versus retention efforts. Nearly half of those surveyed split their investments evenly, while 34% indicated they would spend more in acquisition and 18% would spend more on retention.
Yet research results from Invesp Consulting show that existing customers are 50% more likely to try new products and spend 31% more compared to new customers. That means the vast majority of your customer loyalty efforts should ideally be directed toward existing customers, not chasing down new members.
Give Them All the Right Reasons to Stay
Companies often market ‘the program and its benefits the same way for existing loyalty members and potential ones,’ which the company calls ‘a misfire,’ since those consumers define value differently. Acquisition efforts should focus on ‘transactional value, emphasizing discounts, points and sign-up bonuses, for example. Retention efforts, meanwhile, should focus on emotional value, with an emphasis on topics such as the time to earn rewards, program simplicity and alignment with consumers’ values and interests.'”
Find out more about fostering customer loyalty at Kissmetrics.
- Rethinking Loyalty Programs
- How Much of Your Audience Should Be “New”?
- Remember the Fan Even Before You Forget