How to Design a Customer Loyalty Program That Keeps Them Coming Back

About 43% of consumers will spend more money on a brand they’re loyal to. Gaining long-term, loyal customers can help boost your ROI. You can generate repeat sales from your loyal customers to experience lasting business growth.

In order to encourage and enhance customer loyalty, consider creating a customer loyalty program this year. Not sure how to get started?

Read on for the top tips you need for creating a small business loyalty program today!

Offer Freebies

When creating your customer loyalty program, it helps to consider what your customers already want. For example, everyone loves free products! The words “free” or “freebie” can help you encourage long-term customer loyalty.

Think about what you can offer your customers. For example, you might consider a “buy nine, get the 10th item free” punch card system. This loyalty program design works for online sales as well.

Offering freebies as part of your reward program will show consumers the benefits of sticking with your business.

Try to offer freebies related to the products your customers are already buying. You can provide them with a perk without excessive spending on your part.

Make sure consumers have a way to track their spending. Show them they’re investing their money in the effort to win a reward. When they realize they’re close to winning a freebie, they’ll come back and continue spending!

Provide Discounts

Consumers love saving money on purchases. As part of your customer loyalty program, consider offering discounts to your return customers.

For example, you can offer a coupon after the customer’s first purchase. The customer will want to come back to use the coupon before it expires. For in-store purchases, you can add the coupon to the customer’s receipt.

When they check out, make sure to remind them about the discount!

You can also send consumer’s an email after their purchase. Add the coupon code to the email to encourage them back for more. Use automated emails to remind them when the code is about to expire.

You can also offer customers an exclusive deal after their 10th purchase. For example, they can get $10 off after their 10th purchase. You can also offer $20 off if they spend $100 on their next purchase, encouraging them to spend more.

You can also create a cash-back program. However, cash-back programs don’t always drive increases in post-redemptive spend. They also don’t provide long-term increases in transactions for an incremental ROI.

With that in mind, consider leveraging your loyalty data to better inform acquisition incentive programs. You can learn more about creating a successful financial loyalty program here.

Send Email Promotions

Once you begin using these tips, consider using email marketing to generate more awareness.

For example, you can provide customers with an immediate coupon code when they sign up for your email newsletter. Let them know that you’ll send them specials and deals in the future via email as well. Then, periodically send out product offers, advance notice of sales, and coupons.

Email marketing can help you show customers they’re special and valued.

You can even send them special birthday offers to encourage shopping in the future.

Create Premium Programs

Let your customers know you value their business by offering a premium membership program.

For example, Amazon Prime offers customers two-day shipping, music streaming, photo storage, movies, and more. Provide customers with premium services to encourage them to continue using your services. Even if they only use one of the services the program offers, your business will remain at the forefront of their mind.

Remaining top-of-mind could encourage them to come back for the product or service they purchased in the first place.

Make sure you’re choosing products or services that offer value to your customers without costing yourself too much.

Host a Contest

Remember, people love freebies! You can enhance customer loyalty and gain new customers by hosting a contest.

For example, you can host a social media contest and encourage customers to tag their friends in the comments to apply. Each time they tag a friend, you’re reaching new customers.

Show customers how much fun it is to interact with your brand. They can win a cool prize, freebie, or cash back!

Spread the Word With Social Media

Once you begin using these customer retention tips, make sure you’re interacting with your customers. For example, you can spread the word about your customer loyalty program on social media. Social media marketing is a great way to keep customers engaged.

Consider sending different discounts or deals on each social media platform. Consumers will feel more inclined to follow you on different accounts.

Share your deals in your stores, blogs, and through other post formats. Encourage customers to share your posts in their own stories to spread the word about your program.

Exchange Gifts for Referrals

Encourage word-of-mouth marketing by offering your already loyal customer a reward for spreading the word about your business. Encourage your customers to promote your business using a code. When their friend or family member completes a purchase using that code, the original customer can receive a gift or coupon.

For example, you can offer the original customer a major discount or a free month off.

Consider offering something to both the new customer and original customer! You can generate brand loyalty from both sides using this method.

Partner With Other Businesses

Consider partnering with other small businesses to find new ways to gain loyal customers. Partnering with another small business will give you access to their existing audience. You can generate more brand awareness, attract new customers to your business, and grow.

Say Thank You

Let customers know you’re grateful for their business. Find small ways to say thank you for their time and attention.

Train your in-house staff to go the extra mile to help customers, too.

Create Your Own Customer Loyalty Program Today

A customer loyalty program can boost customer retention, benefiting your ROI in the long run. Use these easy tips to start enhancing customer loyalty. Review the data from your efforts to determine which strategies are working in your favor.

Then, make adjustments to your strategy over time to continue gaining loyal customers.

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