Customers Rewards and Loyalty: Achieving the Right Mix

The importance of fostering customer loyalty to ensure a sustainable business growth cannot be emphasised enough. Although the use of web-based Customer Loyalty Program Software systems has simplified customer loyalty management to a great extent, at the end of the day, businesses have to strike the right balance between offering optimum rewards to garner customer loyalty. While it will take a fair amount of trial and error for you to reach that sweet spot of creating financial value for yourself and your customers, here are a few pitfalls you can avoid while designing your rewards strategy:

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Demonstrate Value

First and foremost, you need to clearly demonstrate that membership to your customer loyalty program is valuable and desirable. The only way you can cultivate loyalty and trust with your existing customers is to reward them enough to take notice of it. As a thumb rule, the welcome offer should hold significant value for the customer. Furthermore, to maintain active engagement, hold flash sales, surprise bonus give-aways, and exclusive member-only discount sales to establish positive word-of-mouth publicity about your loyalty program.

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Target High-Value Customers

One of the most effective strategies for achieving the right mix of rewards and customer loyalty is to target customers according to the value they bring to your customers. By targeting high-value customers with higher and attractive discounts, you can achieve the two objectives of retaining valuable customers and offsetting the cost of the entire rewards program. In other words, focus on retaining and engaging customers that give you more business; but, not at the risk of alienating the smaller shoppers.

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Design Relevant Rewards

Last, but far from least, is the importance of offering rewards that are of significance to your customers. Steep discounts on the wrong products are of no use to your customers and repeatedly offering them an offer on products that they have no interest in will negatively impact customer engagement. The use of intelligent reporting and analytical tools in designing rewards and discounts that your customers will actually respond to, can help you effectively sustain customer interest and engagement.

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Roll Out Offers Periodically

An important element of a successful loyalty strategy is to continually engage customers and shoppers. If your customer rewards program only comes to life seasonally, chances are, it won’t be able to retain its members. Offers and discounts should be rolled out on a periodic basis for all categories of customers and their frequency can be fortnightly to monthly. An intelligent Customer Loyalty Program Software can help you automate promotions according to customer order history, lifetime value, and engagement patterns.

To conclude, designing a rewards strategy to deliver tangible benefits to your customers and your business will require a bit of experimentation and fine-tuning. Depending on your industry and business, you might have to deploy creative rewards strategies to outshine your competitors. However, cloud-based Customer Loyalty Program Software solutions, like Loyera, can help businesses prevent several missteps in designing and implementing their rewards program. To know more about how Loyera can help your business, get in touch with us today!