5 Steps to Creating Your Loyalty Program
Loyalty programs are a popular way to engage with customers and reward those that frequent your business. But, are you prepared to launch a successful program? We have put together some simple steps to help ensure that you are setting yourself up for success when creating a loyalty program.
Step 1 – Get to know your customers.
What are their spending habits? What is the amount of an average purchase? What types of purchases do they make most often? How often do they come in? The answers to these questions hold important information that will help you determine how you should structure your program. In general, keep in mind that the program should work automatically (no extra steps) and that your most frequent customers should see a reward every 3 to 6 months. If they don’t they’ll lose interest and won’t see the value of your program, possibly moving on to a competitor for no particular reason other than the simple fact that you’ve given them no tangible reason to be loyal to you.
Step 2 – Decide how you will format your program.
There are many ways to reward your customers.
1) Cash rebates – a percentage of the amount they spend in a year or a month is returned to them. This is often done in the form of a gift card, but some retailers actually send a check to customers once a year.
2) Punch cards – popular for low cost items that we need repeatedly like a cup of coffee or a car wash. Many of these programs are now run on mobile so it’s easy to track engagement numbers, you collect customer info and people don’t have to keep track of a paper card.
3) Discounts – members receive special pricing every time they come in.
4) Points – As customers earn points, they earn rewards.
Step 3 – Choose a system to manage your program.
The best way to manage your loyalty program is to make it as automated as possible. Your point of sale system is a logical and easy place to do this since transaction information is already run through this system. The right POS will integrate automatically with your loyalty program, alert employees when customers have earned rewards and print program info directly on receipts. This will also make tracking the success of your program a cinch.
Step 4 – Train your staff.
Your employees are the first ambassadors of your program. Make sure they know how to enroll customers, how the program works and what the benefits are. Practice the interactions so that they are presented as an invitation rather than another sell. The goal is that customers feel welcomed into the program, not forced.
Step 5 – Market your program.
Outline a plan for how you will market for new sign-ups and for those currently enrolled. Post signage in your store that clearly explains the benefits, schedule social media posts and integrate your members into your other marketing efforts. If you have an efficient POS system, you should be able to manage all your marketing efforts through one system.
If you are ready to learn how your POS system can fuel your success, then contact a SilverEdge representative for an appointment. We are ready to make your business richer!