How Do You Convert Customer Loyalty Programs Into Sales?
Loyalty marketing
programs can become spinning wheels of conversion and profits, but only to the
extent of how smartly they are implemented and promoted. Not all existing
customers entertain post purchase communication unless they have an reason to
reach out to your business. Securing their attention and engagement towards
your remarketing efforts is crucial to the success of customer loyalty
programs.
- The Advantage Of Paid Loyalty Programs
Loyalty programs
can be run and promoted at a cost and charging your customers a nominal amount
for becoming part of the remarketing exercises will boost your bottom-line. A
lot of thought needs to be put into the conceptualization of a paid loyalty
program. The benefits of becoming paid members must be clearly articulated
using a simple explainer page on your website or other promotional material.
The main advantage is that having paid for customer loyalty programs, customers are bound to shop more in
order to experience the benefits promised.
- Multi-Tier Loyalty Programs
Tier your loyalty
rewards programs using creative ways to draw the line between different tiers.
This compartmentalization will result in benefits for people at both ends of
your points program; those with a few and those who abound in points. By
reminding people who are the verge of entering the next tier, they may be
prompted to buy more for the entitlement. The tier system must be explained
properly with milestones to indicate the level of accumulation of points,
offers and gifts upon reaching specific landmarks.
- Partner With A Performing Brand For Co-Promotion
It is a common
practise among firms to partner with another relevant and popular brand, mainly
to synergize remarketing costs and to promote cross-selling. The loyalty
marketing program gets mileage in both brands leading to increased selling
probabilities. A single brand may partner with multiple companies for the
purpose of its loyalty promotion initiatives. On the other hand, a business can
also offer to become part of the loyalty marketing program of another. Either
way, these endeavours end in a win-win situation.
- Offer Attractive Member-Exclusives
Communicating the
exclusive benefits that your loyalty program offers serves multiple purposes.
Firstly, your brand gets promoted better since powerful loyalty programs are
eye-catchers. Secondly, members who may already be in the know are subtly
reminded of their privileges, prompting them to buy more. Thirdly, non-members
are given a sneak peek into new rewards and benefits that they will be entitled
to on subscribing to the remarketing campaigns. Advertise your members-special
deals, discounts, premium memberships or offers across multiple channels.
To leverage the AOV
(average order value) of existing customers and also to improve their frequency
of purchase, customer loyalty programs must be designed in a creative,
rewarding and engaging manner.