|
Loyalty programs are effective – there is no doubt about that. Starbucks, Sephora and Marriott Hotel are just three examples of world-renowned brands that use loyalty programs.The brands that manage these programs are very interested in their success. They do not include a cheap bonus score store system and expect a magical increase in the number of customers. On the contrary, these are well-thought-out, creative and strategic loyalty programs that use switch barriers to force you not to shop elsewhere.But here’s the catch: they are successful primarily because they are the dominant players in their market. For buyers, they are the best in their industry by default, no matter what programs are associated with them. The fact that they offer buyers
benefits is a small bonus, but not a decisive factor in the formation of consumer loyalty.In his book How Brands Grow, explained in detail that the expectation of an incredible crowd of customers, unconditionally loyal to your brand, is unrealistic, and can slow its development.This is due to shopify website design the fact that loyal customers first of all care about the quality of the product, the benefits associated with it, and comfort when buying. Only after taking into account these factors will the loyalty program have an impact.And given the considerable investment that the loyalty program involves, I would advise first of all to focus on the following:Invest in the quality of your productsBe Competitive in Your IndustryProvide convenience for the consumerOnly after these three components are taken into account and the strategy is developed can be considered a loyalty program as a serious investment for the brand. In addition, there is another important factor that may be superior to all others: Are your brand and product really massive?The sale of dietoons and consumer goods is better suited to the formation of loyalty than, say, the sale of mattresses or furniture.In the latter option, the success of the store in the long term will depend on how successful the first transaction will be, while the brand based on mass consumption, or the brand in a category like fashion, has more opportunities to take advantage of the loyalty
program.Basics of Creativity of a Successful Loyalty ProgramSuppose you meet the above criteria and are seriously interested in the idea of creating a program. In my experience, it is these main provisions that really contribute to increasing customer loyalty. The loyalty program should be:1. Well-thoughsoutableMany brands use the default system based on the accumulation of bonus points, and expect that it will magically accelerate the process of retaining customers. Usually, it doesn't work that way.A well-designed loyalty program is easy to understand the client and has advantages that go beyond discounts based on bonus points.In the worst case, loyalty programs can lead to a decrease in the margin of your most active customers who would make purchases without them. Therefore, it is very important to get support from ordinary brand buyers and to interest them.2. Simple to useDo not strain your clients with complex ballpoints. An effective loyalty program should be easy to use.If your program is too complex and incomprehensible, it will reduce its efficiency, disappoint your customers and negatively affect conversion rates.A good example is the chain of grocery stores in Poland Zhabka (Polish. Zabka), which uses the most understandability and interesting loyalty program.All that customers need to do is to shop and scan the code from the application, earning special points - japps, which can be activated and receive useful bonuses after. It's simple, and nothing superfluous.
|
|