Loyalty programs – all but non-existent a decade ago – have become increasingly popular in virtually every business and retail establishment. As the demand for effective and efficient loyalty rewards programs continues to rise, so does the supply of available programs. But even a professional with limited experience in the world of rewards programs can see that not all loyalty programs are created equal.
The following outline contains an objective view into loyalty and retention programs: what makes the best programs successful, features you should look for, ways to implement the program in your own business. This is by no means exhaustive, but simply a springboard to get your thought-process running as you begin the process of implementing a new program or as you evaluate your current one.
1. Loyalty & Repeat Business Are the Cornerstones of Today’s Market Condition
a. How do loyalty and retention programs relate to your business?
b. Has your business adopted proven loyalty and retention principles?
c. Why should you consider a loyalty and retention program?
d. Are you creating cross marketing opportunities with other local businesses?
2. What Features Should a Good Loyalty or Retention Program Include?
a. Ability to use membership levels as a revenue generator
b. Ability to influence – and change – customer purchase behavior
c. Custom-branded marketing and graphic design
d. User-friendly reporting and program measurement
e. Daily member analytics
f. Full database integration
g. Flexibility (structure program based on dynamic customer revenue concentration)
h. Extensive provider experience
i. Personalized client support
3. How Do Loyalty Programs Physically Work In My Business?
a. Top-down employee adoption
b. New member registration
c. Member rewards and redemption
d. Program data collection
4. Integrating Loyalty Programs with Your Existing Marketing
a. Driving repeat purchases: target the right person with the right message at the right time
b. Using non-solicitation marketing to build customer trust
c. Employing “start-up” contact packages
d. Creating a sense of community
e. Using the program to increase customer acquisition
5. How to Build Personal Relationships with Your Customers through Loyalty Programs
a. How do I effectively engage my customers?
b. How do I make it easy for customers to do business with me?
c. How can I turn one-time buyers into long-term customers?
6. What Results Can I Expect from a Loyalty Initiative?
a. Frequency of purchase?
b. Member revenue or spend?
c. Non-transactional benefits?
7. For Auto Dealers: How Do I Reconcile a New Rewards Program with an OEM Program?
a. Is the OEM program a benefit or a drawback?
b. Does the OEM program help my dealership specifically?
c. What member data does the OEM program collect?
d. What is my dealership’s ROI through the OEM program?
Feel free to share your responses to any of these outlined items – or suggest additional factors – by commenting on this post!