These days, technological innovations have made consumers even more savvy than ever. So when it comes to marketing strategies like loyalty programs, businesses must work extra hard to please the evolving customer.
To create an effective loyalty program, smart marketers should keep the following points in mind:
- Modern customers will consolidate their purchasing under the loyalty programs that give them the most relevant rewards, so offer options for earning and redeeming tailored rewards.
- Never take hard-earned points away from customers without any notice. Savvy point-collectors usually have a specific reward in mind, so if there is an expiration date, make it obvious.
- Offer rewards that are practical for everyday use and that promote environmental responsibility, such as reusable shopping bags.
- Balance monetary rewards with tailored event or product rewards to add value to the loyalty program.
- Offer tiered reward programs and provide spending options that make the top tiers more attainable even to customers that don’t spend a lot.
- Make it easy for customers to stay in touch with the activity of their points and rewards account. For instance, allow customers to track their point balances and redeem rewards both on paper and digitally.
Source: http://www.fastcompany.com/3004707/how-create-loyalty-programs-consumers-will-actually-get-excited-about