07/09/2018 Barry Marelli

DO YOUR CUSTOMERS HAVE A REASON TO BE LOYAL?

We’ve touched on loyalty a number of times this year and cannot stress the importance of making your customers feel valued. A loyal customer, or brand advocate, will come back time and time again if you continue to provide excellent customer service and offers to entice further transactions.

In our previous blog, we talked about “Golden Records” and how it can lead to golden opportunities. In this instance, great customer data can empower loyalty programs.

There are many ways you can approach loyalty via your website, and these will differ depending on whether you are a “pure play” or not. Both present different challenges, and typically companies who sell online/offline must find a way to unify a customer’s data regardless of how they purchase.

Typically loyalty schemes are points based using physical cards and a unique identifier, meaning customers can collect their points regardless of how they are shopping. The use of mobile apps to track your points is on the rise too with Coles and Virgin Australia providing excellent examples.

From a technical point of view, there are now a wide range of modules that you can use with your Magento or Drupal instances that can add value to your website and ensure that customers have a simple scheme they can use.

Simply put, today’s shoppers expect to be rewarded for their loyalty to your brand. As a result brands are investing into loyalty programs more and more but before simply jumping in, there are a number of key considerations.

The biggest challenges you’ll face are around strategy and data. If you fail to execute the loyalty program in a way that benefits the customer, they’ll start to look elsewhere. Requiring customers to manually input their receipts as an example, will reduce the likely uptake from regular consumers. Likewise, running a loyalty program based on bad data will cause operational headaches. Analysing customer data will be a challenge initially, but it’s vital that you have the resources in place to be able to do so.

Promoting a loyalty scheme and using target campaigns is great, but if you don’t understand your customer and are pushing products to them they’ve never shown interest in, or worse still, already own, is a negative experience.

For an effective roll out, consider –

  • Simplicity: over complicating sign up or ongoing use, will turn customers away
  • Educate: give customers a feature and a benefit for signing up, simply asking if they want to join isn’t enough
  • Fun: gamifying the approach or using a social element is great to encourage engagement
  • Reward: don’t run a loyalty program if there aren’t genuine benefits to the customer or to your business.

If you’re looking to roll out a loyalty program but aren’t sure on the best approach, reach out to us on the form below and we can help you with scoping through to implementation, and ongoing support and recommendations.

Tagged: , , , ,