Loyal customers are also your most profitable customers. Loyalty means they spend more, have no additional customer acquisition costs, and they help market you to others for free. The number one goal of any business needs to be cultivating customer engagement and loyalty through excellent business practices and fostering a brand that customers value.
One of the best ways to build a loyal customer base and let those customers know how much they mean to you is through rewards programs. Customers are incentivized to return more often and spend more – plus people just love getting rewards.
Not all customer loyalty programs are created equally. Points or cashback in the form of a professional-looking card will set you apart and brand your business in a new way. Here are the six best for building customer loyalty and growing your business.
Point-Based Loyalty
Points are the most used and one of the most effective customer loyalty programs. Customers can receive points for performing many different activities and not necessarily just earning points for purchases. Birthdays, games, leaving reviews online, or simply sharing your social media posts can be ways for a customer to be engaged, keep you top of mind, purchase more often, and provide free marketing. Marketing is essential to growing a business and it can be expensive. The savings are considerable when a customer helps market your business for a few points on a card.
Paid Loyalty
Customers will gladly pay fees now for increased benefits later and they will start spending more with the brand they have paid to join. Whether you’re a service business, restaurant, or goods retailer, there is a way to offer a paid loyalty program. $10 for two free lattes every month or $50 for half-off massages are just a few of thousands of ways to offer a paid loyalty program.
A McKinsey report shows that consumers are 62% more likely to spend on brands that offer such programs. As long as the benefits outweigh the cost and encourage engagement, you will see tremendous benefits from paid loyalty, especially when combined with point-based loyalty.
Tiered Loyalty
How about offering tiers in your point-based system? Highly engaged customers who spend or engage more can become higher ranked and earn more significant benefits. Your customers want to know they are valuable, and nothing reaffirms that more than saying, “I see you’re one of our platinum members.” The customer has a goal of earning points and achieving the next tier.
Cash Back Programs
Ask yourself what it would be worth to have a customer spend a certain amount with your company. Be honest with yourself; it’s worth a lot. Giving some of that money back to your customers through company rewards programs is one of the surest ways to get them to that amount of spending. Like those from Juice Banking, a card with your logo on it and an automated email telling them they have cashback every time they make a purchase is incredibly effective. Customers will spend more to earn more.
Value Loyalty
Not every customer wants something for themself. Using a card to accumulate cashback that goes to a charitable cause grows your business but also makes a positive impact in the world. Customers could also use points from a point-based system to convert to a $10 or $20 donation to a charity. Your brand benefits, your customer feels great about buying from you, and you’re helping make a real difference.
Contest Loyalty
Cards that accumulate points and allow customers to use those points to enter contests online are very effective. The more points, the more entries they get. Companies can give away anything from branded swag to romantic date nights. People have the satisfaction of earning points and then having the chance to win something of value.
Another benefit to your company from any of these rewards programs is information. Have a special this week? You have the email address of every person in your rewards program. Send them a dynamic email announcement tailored to your loyal audience. Even attach a point special to it.
Card-based loyalty programs have come a long way. Gone are the days of a stamp for a free sandwich and the options for rewards are limited only by your imagination. Company loyalty programs will grow your business of any size or product by using one of these six rewards strategies. You’ll wonder why you hadn’t instituted such a program earlier – especially since it’s inexpensive, fast, and easy to get started.
