Top 5 Points to Consider Before Creating a Loyalty Program

Top 5 Points to Consider Before Creating a Loyalty Program

Top 5 Points to Consider Before Creating a Loyalty Program 150 150 Nada Adel

Are you considering creating a loyalty program for your business? Weighing the investments needed to create one? Well, today we are talking about the top points to consider if you want to launch a rewarding loyalty program for your customers.

 

Defining Success for Loyalty Programs

Success is a flexible word. What you define as successful might not be so for someone else. Getting a 90% pass on your English test is a success for you but someone else might be targeting a 99% or 100% grade.

When it comes to loyalty programs, however, success becomes dependent on a number of factors such as the rewards you offer and their value to you and your customers.

Your choice of rewards depends on analyzing what your business has to offer in the first place along with what motivates your customers to buy from you. Your customers need to see a value in your loyalty program so that they would want to participate in it and become your retained customers.

 

To make this analysis, here are 5 aspects to consider before creating your loyalty program.

1. Ask Customer-Oriented Questions

Who are your customers? And what do they want? What decisions do they have to make to buy from you? Are you selling to individuals, that is business-to-consumer (B2C) or are you selling to other businesses (B2B)?

With B2B customers, who are you talking to? What reward benefits them as a business? On the other hand, with B2C, your customers are responsible for their individual decisions, so giving them discount cards or special action-based points could be a strong motivator for them to use your services over and over.

2. Motivate Your Customers

It’s important to analyze and test what motivates your customers to buy from you or keep returning for your services.

According to research by VirtualIncentives.com, 75% of consumers prefer a company or brand that offers incentives, while 69% prefer a company that delivers personalized messages or rewards.

So how can you get this data? Creating online surveys, polls, and focus groups are good methods to understand and get to know your customers and their needs.

3. Identify Your Business Goals

Your choice of rewards will affect how your customers and users interact with your products and services, which eventually impacts your profits.

So before choosing the rewards program you’re going to offer, you need to decide what your business goals are. A loyalty program can achieve several goals at once, but these achievements or targets need to be defined from the start so you can measure the impact of the program later on.

Let’s say your target is increasing brand loyalty. You’ll need to offer rewards that support this goal, like free upgrades to your users. Dropbox, a cloud-based file storage service, offers its customers extra free storage when they refer other users who translate into conversions for the company.

On the other hand, if your intention is to increase customer acquisition, your rewards program will need to offer sign-up incentives to potential customers like a free trial, a free e-book or report, or you can offer a 50% discount on a user’s first month if they are referred by a current customer.

4. What Do Purchases Look Like?

What is your definition of a purchase? Is it a monthly, quarterly, or annual renewal of a subscription or service? Is it a product that people buy from your online store or e-commerce website?

For many companies, a reward can simply be a discount on a service or product or points that can be used later on within your online – or even offline store. This allows you, as a business, to keep your customers in-house and encourage them to use your benefits to buy more from you.

5. Loyalty Program Resources

When creating a loyalty program, it’s important to remember the resources involved. Meaning, does it require human resources? People who will contribute to your loyalty program, like sales and marketing teams, development teams, or others, and how much time do they need to allocate to fulfill your customer’s rewards.

If you don’t have the necessary resources needed, you can put everything online and create an automated rewards system, something we highly encourage at Gameball. Online, you can use in-app credit or a points system, coupon codes, or digital gift cards.

Moreover, offering a rewards program will involve a financial investment, something you will also need to consider when creating a loyalty program.

At Gameball, we provide our customers with fully-digitized customer loyalty and rewards programs, so they don’t have to mobilize their marketing, sales, or even development teams into doing extra work or in having to hire new calibers to conduct loyalty programs, thereby saving hundreds and thousands of dollars, while connecting their website and mobile app(s) to include their loyalty program(s).

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