First, you need to understand why you need a Loyalty & Referral Engagement Program. 

A loyalty program can align your entire business towards your customer base’s most profitable segment. As the program matures, you’ll be able to use the analytics data you’ve collected from your platform to uncover ways to make the least profitable customers. Hence, it helps to increase your customer lifetime value.  

Recent studies have shown that loyal customers tend to convert and spend more money with brands they like, with around 78% of them being willing to spread the word to family and friends.  

Combine the fact that loyal customers are more likely to refer business to a company they like and that their network is about 92% more likely to convert based on those references. 

So, knowing that there’s a huge revenue potential waiting to be tapped from loyal customers, what components are needed to run a Loyalty program. 

While businesses customize individual loyalty programs, it comes down to the basic principle – reward customers for taking specific actions. They are likely to stay with your company. 

Let’s look at the components of NextBee’s successful Loyalty Program platform.

1. Defined Actions that Result in Rewards

Successful loyalty programs focus on a single customer action: getting customers to buy again. 

Rewarding for repeat orders is a top priority for successful loyalty programs, but rewarding other activities such as store visits, referrals, social shares, etc., also builds engagement. 

2. Clear Reward Redemptions

The clearer and simpler this step are, the more engaged participants will be. 

Avoid allowing customers to redeem points manually or offering rewards that are difficult to save. For example – coupons or gift certificates that are “only good at certain locations at certain times,” etc.

3. Reward Variety

Offer your customers several rewards but take comfort, knowing that not all have to be monetary. Sometimes customers like to be recognized but adding in free shipping or discounts never hurts. 

Whatever rewards you offer, keep it simple at first. Start with three or four, and then look at analytics and conduct surveys, see what’s working and what’s not. It allows you to confirm if more are needed and what excites your participants.

4. Rules: K.I.S. 

When it comes to the rules of your loyalty program, Keep It Simple, or you’ll drive people away. The authorities need to be sensible, straightforward, and are ones that protect you from abusers.

While it can be hard to retain customers in today’s fast-paced environment, you can do it with a Loyalty Program, especially if you understand the core aspects of a successful loyalty program. Hopefully, the above information will help you get started. 

Conclusion

However, before you start, you should connect with one of our Loyalty Program specialists to ensure you are on the right path. That’s the only way to be sure you’re pushing things in your company’s favor!

If you are looking to incorporate a loyalty program for better business results, contact our NextBee specialists to provide complete information on the loyalty solution.