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Customer Loyalty in Six Simple Steps

Authored by ActionIQ Team

Creating a robust loyalty program from scratch can seem like a gargantuan task. Wrestling data, compiling rewards and following customer behavior can be so daunting that marketers often scale down their loyalty ambitions before they even get started.

But this is the era of software as a service, where data can be wrangled with the push of a button, making loyalty programs more approachable than ever.

Follow these six simple steps to get your loyalty program off the ground and running, and converting fickle shoppers into brand loyalists.

 

Make it Mission-Driven

More than ever customers care about what’s behind the product. They want to know what a company believes. They care about the social ethic and Fair Trade sourcing of a Starbucks, or the philanthropic mission of TOMS Shoes. Make your mission a central theme of your loyalty program, whether it is giving customers the opportunity to donate loyalty points to philanthropy or simply driving home the company mission with each loyalty reward.

Give it Personality

Loyalty programs have been set free by software. They no longer have to be confined to a lifeless punch card; they can live in the limitless, animated digital world. Use the digital space to give your program personality. Whether it is color, characters, witty writing or humor, you should never be afraid to have fun and be entertaining. Let your personality shine and your customers will thank you for taking a lifeless loyalty experience and making it lighthearted and engaging.

Reward More Than Purchases

There are many things that brands want from customers. Typically repeat purchases get put at the top of the list. But powerful actions that spread a brand’s message can be equally as valuable. Reward customers who share your content on social media, spread the word to friends and family and become ambassadors of your brand just like you would a repeat customers. Loyalty programs need to expand to other powerful consumer actions by looking beyond simple sales.

Segment, Segment, Segment

Your audience is diverse, and your rewards should be equally varied. Don’t apply blanket, cookie-cutter rewards across all customer types — segment your customers into different audiences and reward them according to their unique demographics, psychographics and consumer habits. They will thank you for treating them as individuals.

Call for Enrollment

Once your loyalty program is off the ground, you have to get your customers involved. Use your website, your newsletter and your in-store interactions to fill the loyalty funnel and enroll customers. Make the enrollment process simple and painless, and the enroll callouts clear and direct. And don’t be afraid to offer your first rewards for sign-ups.

Close the Loop

In the age of e-commerce, loyalty can become its own digital ecosystem. But try to close the loop with personal interactions that will cement your relationships with customers. This can be in-store event invitations, or in-store greetings and perks, but make a digital interaction eventually lead to a personal interaction. While customers love the ease of frictionless digital commerce, they still build relationships through physical meetings.

Are you awash in data but have no idea how to turn it into a loyalty program? Is your convoluted loyalty process in need of streamlining? Action IQ is a leader in data-driven marketing that can transform outdated loyalty programs into game-changing 21st Century platforms. Learn more by reading our latest eBook Marketing Freedom in the Midst of the Data Downpour here.

 

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