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Enrich Your Rewards Program to Gain Customer Loyalty

By: capturecode | Jul 9, 2014

Imagine what would happen if you kept adding new customers to your database, only to have the existing customers leave with dissatisfaction. Your company would probably not grow the way you want it to. Customer loyalty is an important aspect of marketing that many businesses seem to neglect. Customer loyalty is especially important for small businesses that cannot spend big like their cash-rich competitors. If your existing rewards program is not working, here is what you should do to improve it.


Determine what you want out of the rewards program

The whole idea of a rewards points program is to boost customer loyalty. That means you want your customers to come back to you for more business. So determine if your rewards program is achieving the desired results – are you creating repeat buyers or loyal customers. There is a difference between the two. Loyal customers are those with whom you create a lifetime value, and repeat customers are those who will stay with you as long as they get something tangible. Is your rewards program simply offering something tangible to make customers buy more, or is it creating a value relationship between the brand the buyer?


Make your rewards program better

If the existing rewards program is not working, here are ways in which you can improve it to boost customer loyalty.


Personalize – Every customer is unique and likes to be identified as an individual. If you have been sending generalized content to your members, it is time you changed it to personalized messages. Even a simple thing as using the individual’s name in the mailers you send can make a difference. If you can get more information about the customer, you can personalize the content and offers based on other demographic details and the customer’s geographical location.


Targeted communication – Targeted content is focused on delivering to the readers what they expect to read. Whether it is through email, post, mobile messaging or social media messages, engage the customer directly through personalized communication.


Know what the customer prefers – The more you know about your customers, the better it is for your business. But how much do you know about your customers, besides the fact that they are looking for a product or service that your brand offers? Do you know what their preferences are, or if they would like their product or service to be customized? Find out what influences your customers buying behavior – this valuable insight can help you develop rewards programs that the customer actually appreciates.


Engage through multiple channels – Customers like it if you let them choose how they want to communicate with you. Give them as many options as possible to engage with your brand – social media, mobile or email to begin with. You should also enable them to contact you through their choice of device – smartphone, tablet or computer. For example, you should create a mobile app that is compatible with smartphones and tablets, using which your customers can check and redeem their loyalty points.

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