There are tons of loyalty program ideas floating around the web. The Perkly Team has put together this article based on our own experience, here’s what we’ve come up with.
Why do I need a rewards program?
Research indicates that 82 percent of companies now offer some type of loyalty program, up from 67 percent last year. Research estimates that 46 percent of the U.S. population is “loyalty motivated,” which means they are unlikely to switch from their favorite business. The other 56 percent are “transactional” loyalty-motivated, which means they are more likely to make a change because of better or different rewards or benefits.
Should you create a rewards program?
If your business has a lot of customers or are obviously looking to get more, then you should consider creating a rewards program. Although our view might seem a bit skewed, it’s hard to imagine any customer facing business that couldn’t benefit from a rewards program. It’s a great way to engage with customers and reward them for their business, but more importantly, encourages repeat business. Repeat Business is the real value here. With a rewards program, you’ll give your customers an incentive to be loyal and reap the additional benefits in the long run. Some great examples of customer facing retail business such as a Salons, Restaurants or Dry Cleaners, are great examples where a loyalty program is almost always a great choice.
How to design the rewards program
Honestly, it all boils down to 2 things. Simplicity and Value.
- Simplicity – your loyalty rewards program should be easy to create, manage and use. That really it. Nothing is worse than technology that touts all it’s benefits but when it comes down to actually using it, it just becomes one big headache. Perkly has been developed with ease of use in mind.
- Value – as much as you want your rewards program to benefit your business, and it will, the customer is the one that has to see the value. Rewards should be the exact items or services you know customers truly want. In effect, that will ensure a better chance of your customers
What are the benefits rewards programs
Here’s some things we’ve learn over the years about how a rewards program can help your business.
- It helps you capture information from new customers. We all know in today’s age, most customers are not comfortable in sharing information. With that said, if you have a program that is easy to understand, required very limited input from the customer to signup, you’ll increase the chances of them joining.
- It increases your bottom line in numerous ways. From increasing the frequency that customers do business with you to upping total transaction values, loyalty programs boost profits.
- Customers Spread the Word. Satisfied customers are more likely to share their love of your business when they have a positive experience. We all know word of mouth referrals are one of the best ways to attract new customers.
- There are many more benefits and we could go on forever, but this sampling is a tiny list of a few we’re sure you can see the value in.
Implementing the rewards program
Every person who participates in your loyalty program will likely have their own unique set of goals in mind. However, as mentioned above, the benefit should always focus on the customer. We’re not saying to blindly create a loyalty program where the customer is the only one that benefits. It’s really simple when you think about it. If you are the only one that sees the value in the program what are the chances of customers adopting it and it being success? Not very good.
However, if you approach your rewards program from a win-win standpoint, you’ll have a much better chance of it being a success.
If all this sounds like too much to think about or you don’t have time for something else on your plate, why not let our Loyalty Rewards Experts help you? We offer a complete White-Glove experience where we’ll ask the right questions to ensure your program starts off on a right foot and more importantly, we can do the majority of the work for a small fee.