Loyalty programs allow you to increase commitment and extend the duration of your relationship. Engaged subscribers are more likely to become satisfied customers, and those willing to do more shopping, are happy to share positive impressions and are more likely to leave a positive opinion.
You can prepare your loyalty program in just 6 steps:
Develop a strategy
Specify the purpose of the loyalty program. Find answers to a few basic questions:
Why do you need it for your company? What business objectives should it achieve? The reasons why a company can introduce a loyalty program can be varied, e.g:
- increasing the involvement of participants
- rewarding the most profitable customers
- maintaining customer loyalty
- obtaining information to improve the product/service
So analyze the current situation of your company and determine the goals you want to achieve with it. As an inspiration, you can check the actions of your competitors.
After defining the objectives, select appropriate indicators of the quality of particular activities.
(key performance indicators), thanks to which you will be able to monitor the effectiveness of your campaigns. Indicators that may be particularly important in the case of loyalty programs based on email marketing are:
Return on investment (ROI) – a basic indicator that allows you to estimate the profitability of marketing activities. General formula
ROI = (income – cost) / cost.
Customer lifetime value – this indicator determines the value resulting from the relationship with the customer over a specified period of time (e.g. 12 months). Proper CLV estimation will allow you to determine the maximum amount you can spend on customer retention.
Cost per acquisition – this is the sum of marketing expenses divided by the number of new customers/participants.
Conversion – depending on the objectives of the program, this can be: the number of subscribers who signed up for the loyalty program, the number of participants who purchased the program, etc. The indicator is expressed as a percentage of the formula: Conversion = number of participants who performed the action/number of participants in the programme.
Segment address database
The basis of an effective loyalty program is the knowledge of subscribers’ preferences. Provide yourself with tools that will allow you to observe their behavior and study their expectations.
Who are the participants of your loyalty program? What are their shopping habits? In order to adjust the loyalty program to their needs, you need to obtain key information about them. Based on the collected data, you will be able to segment the mailing list – group the people on the list and direct personalised messages to them.
Prepare the rules of the loyalty program
You have already defined business objectives and the profile of the participant. Based on this information you can prepare detailed rules of the loyalty program. Describe in detail:
- participation rules
- content strategy
- elements to increase the involvement of participants
- process automation
- a reward system
Try to make the most of the opportunities to obtain valuable marketing information offered by the implementation of a loyalty program. By observing the behavior of participants, you will be able to better understand their motivation to buy. You will find out which activities are the most effective incentive. Try to find effective non-pecuniary rewards with which you can build lasting relationships.
Identify ways to attract participants
How do I sign up for your loyalty program? Here are some of the most popular ways to attract participants:
Prepare a registration form and place it in a visible place on individual tabs of your website and on your corporate blog.
Prepare a suitable title and header with a short description of the program. Inform subscribers about the most important benefits of participation, which will help encourage them to subscribe.
A dedicated target page will allow for a detailed presentation of the loyalty program. Prepare the project in such a way that all its elements draw the user’s attention to the subscription form and encourage him/her to make a call to action.
More information about the structure of effective landing pages can be found in the previous article on our blog.
Maybe you know influential people or companies that have a large customer base and could help promote your loyalty program? Think about what you could offer them in return for the opportunity to advertise to your customers and offer them a barter.
However, make sure that the people you are going to work with follow similar rules and do not adversely affect your brand image.
Prepare promotional campaigns for all the social channels your company uses. Use the paid tools offered by the platforms – they will enable the promotion of the program among users meeting the criteria of the target group of participants. If you spend even a small budget on paid campaigns, you will have a chance to reach a much larger group of potentially interested users.
Start the program using automation
Once the necessary tools have been found and a detailed action plan has been drawn up, it is time to move on to implementation. Make the most of automation to save time and better tailor your communication to individual audiences.
- Prepare an appropriate campaign, to which the subscribers’ e-mail addresses will be sent.
- Design a message template.
- Take the time to prepare a welcome message that will impress the participants.
- Plan a cycle of autoresponders, sent based on specific user actions.
- Use the dynamic content function, which allows you to change selected elements of the message sent to users. You can send one e-mail, the content of which will change depending on the group of recipients, to which it will be sent.
Measure effectiveness and optimise performance
Check the success of your loyalty program and observe the commitment of participants. After some time, you will be able to see if the program achieves its business objectives and if it is a valuable marketing channel that has a positive impact on the development of your company.
If you would like to learn more about loyalty programs, download a free guide from GetResponse’s knowledge base.
Prepare a program based on the above steps and let you know in the comments if it brings the expected results.