9 Tips to Build a Killer Customer Loyalty Program

When you provide excellent customer service, customers become loyal to your brand, they buy more from you and become your army of marketing. 

Over the years, customer loyalty programs have changed. It would help if you did more as a brand – have an online presence, get more clinical, and offer value to your customers. 

And because there’s a stiff competition in this marketing world, keeping your existing customers can be your worst nightmare. It would be best if you implemented more proven marketing strategies into your customer loyalty programs to stay more relevant in the industry. 

In this post, I’ll walk you through 9 tips to build a killer customer loyalty program. They are the most useful hacks, and when implemented well, your business can explode. Let’s dive in. 

9 Tips to Build a Killer Customer Loyalty Program:

1. You must study your customers 

In 2013, Starbucks created a customer loyalty program, which resulted in a twenty-six percent increase in its profit and an eleven percent rise in its total revenue. 

Before you implement a customer loyalty program, your team should do in-depth research. Doing research will help you understand your business needs, as well as know your customers’ pain points. 

Once you have completed your research and got the results, use it to analyze your business, so that you can create a loyalty program that meets your business goals. Additionally, don’t forget your customers’ interests – make sure they’re well taken care of. 

Now, you don’t need to fret about where you’ll acquire customer data. There are a ton of sources to get quality customer data. For example, you can leverage your website analytics and check your inventory history to see if they have any unique buying behavior.

2. Deploy a multi-channel service system

If you want to build a successful customer loyalty program, you must ensure that you attend to your customers’ needs. 

According to a 2015 Aspect Consumer Experience Survey, 76% of consumers feel that the extent of a business’ customer service is a true reflection of how much the business cares about them. 

That said, implementing a multi-channel customer service system will help connect consumers with the customer service team, interacting more, hence building more trust. Sure, the more often you attend to your customers, the more they develop loyalty in your brand. 

Multi-channel customer service also opens the door for you to build an omnichannel experience with your customers. Now, omnichannel experience is when consumers see consistency with your brand across different devices. When customers see consistency, they become more satisfied, which leads to repeat purchases. 

The best way you can do this is by adopting a live chat tool as Tidio does. When you start a live chat with the Tidio customer support team, you’ll connect with a representative in seconds. This alone improves customer loyalty as consumers don’t have to wait long queues. 

3. Keep it simple

The human concentration span is down to only eight seconds. That’s pretty much low, which means that you need to simplify things for your users. In other words, keep your customer loyalty program simple and don’t overcomplicate it. 

Make your process straightforward, so that your customers can easily understand it. Additionally, keep your landing page simple to enable your customers to sign up easily. By this, I mean, don’t include too many fields. Just a first name and email address are enough. 

For example, HappyPoints did this well by including only 3 fields in the registration form to get the Free Migration checklist. By doing this, they avoid inconvenience the readers may have. What this Shopify development company did well is understanding their audience, they all want to receive the checklist right-away within 1-click. HappyPoints save time for their audience and avoid any inconvenience that may arise.

Also, make sure you have defined how you’ll be rewarding points to your customers. Your customers should also understand how they earn these points. Helping them know will push their curiosity to want more and more points.

4. Reliable customer support

This will blow your mind. 

Imagine 60% of customers ending their relationship with your business because of poor customer service? And what if you could save 67% of them by improving customer service? 

In research, 60% of consumers will end their engagement with businesses after lousy customer service. Still, up to 67% of consumers could be trapped if the customer support service was improved. 

Consumers expect a positive customer experience. Imagine a customer seeking help from a support team representative, but finds no assistance. The support team has no solution to the problem. In a study by Microsoft, 28% of customers get frustrated if a support team is unable to resolve their issue. 

The best way to ensure such doesn’t happen is to introduce a CRM within your business. A CRM will help you trace past customers’ experiences and help you brainstorm some of the best ways you can improve on your weaknesses. Even more, customers will be happy to continue buying from your business because of the personalized experience that comes from the implementation of a CRM. 

To select a CRM, the eCommerce platforms recommend some, including Metrilo, Hubspot, Salesforce, and others. You can try one or all of them before going to the final decision.

5. Give customers worthy rewards

You see, customers cannot want to earn more points if they don’t know what rewards will come their way if the reward is inferior. Don’t make the mistake of centering your customer loyalty program about your business, but about your customers. 

There’s a need to give a range of rewards, from which your customers can choose to once they attain the points. Customers may not see sense in earning points if they aren’t interested in the reward. A wide range of bonuses to choose from may make sense to them, though. 

Have a look at how Growave helps its users by creating customer rewards:

In their blog of building an online community, HappyPoints mentions YSL as the perfect example for giving customers worthy rewards. They understand what their customers are looking for, so they encourage shoppers to earn the best rewards with early access to products, offers, and invitations.

How YSL encourages shoppers to spend more

6. Have a Feedback System

If you are having tremendous success and getting positive feedback from your customers, you need to show the world the great things you are doing, especially to potential customers. 

Social proof is quite essential, and they aid in winning more interested customers. Additionally, social proof helps companies build more trust with their customers

First, a consumer reads an average of 10 reviews before he or she can make a purchase decision. Additionally, 88% of consumers trust customer reviews. 

You can leverage this by collecting customer feedback to know how they interacted with the service. Once you get their feedback, you can showcase them on your website or social media platforms. 

7. Value-added Services

You need to know this: competition has become stiff over the years, and that means customers are a battleground because every other company is trying hard to win the same customers. But how do you ensure that you stay ahead of your competition? 

Understand your customers’ pain points and deliver pure gold to them. 

According to research done by ThinkJar, 55% of customers are more than willing to spend an extra coin, as long as there is guaranteed excellent customer service. By building a customer loyalty program the right way, you can have more engagement with your customers even after the sale – it’s called the value-added services. 

First, you can introduce contests or host events to add value to your customers’ experience. Make sure that you are holding contests that your customers are most interested in, as well as the events. A good example is Red Bull – they have been sponsoring several sports events, which is a cool way to offer value-added services to their customers. 

8. Market your Customer Loyalty Program

Marketing is an excellent strategy to win in any market. Mark Ritson says, “Marketing strategy is where we play and how we win in the market. Tactics are how we then deliver on the strategy and execute for success.” 

It doesn’t matter how good your customer loyalty program is. What matters is whether or not they know about it. That’s why you need to promote it so that it can reach a broad customer base. Heck, promoting your customer loyalty program can attract new customers and bring them on board. Below are a few marketing strategies you’d want to leverage: 

  • Build an army of marketers by developing a customer referral program
  • Social Media
  • Press Releases
  • Engage customers in the customer satisfaction survey
  • Outdoor hoardings
  • In-store signage
  • Newspaper Ads
  • Send email newsletter
  • Online Ads
  • Implement online contests
  • Offer valuable and insightful content

9. Improvise and Overcome

It could be every business’ wish – to make more profit from customer loyalty programs, but you need to know that customer loyalty programs are not an overnight success tool. But with continuous improvement and experimenting, you can build a customer loyalty program that’s successful. 

Through continuous improvement and experimentation, your customer loyalty program will undergo modifications to ensure they are well-tailored to your customer needs. This alone is a bonus to you as a business. 

Over to You 

Sure, if a customer loyalty program is built right, customers will develop more trust with your business. Once you have their confidence, it’s easy to sell to them. A word of caution, though. Don’t be way too salesy with your marketing. Respect your customers and employ only transparent marketing tactics. For chrissake, no sleazy marketing hacks. 

Author bio:

Hannah started as a copywriter, but it turns out her true passion is e-commerce marketing. She is naturally inquisitive about human behavior and its interaction with the digital world. Now, she’s part of the HappyPoints team with a goal to help Shopify merchants boost their business. Her team helps merchants launch their e-commerce websites and optimize their sales conversions with fully managed Shopify store setup and theme customizations.

Find more about Hannah and her team at:

www.linkedin.com/in/hangthanhpham/

www.twitter.com/HappypointsI

www.facebook.com/happypoints.io/