A digital loyalty program is the perfect tool to keep your customers engaged with your brand. Whether through games, side rewards, or main competitions, it can collect a wealth of data about your consumers and help you understand them.
It can also improve customers’ experience and turn them into brand advocates willing to recommend, share, or write reviews.
Reward Non-Transactional Activity
When a brand rewards non-transactional activities through its customer loyalty program, it values its customers beyond their wallets. This is a great way to encourage loyal behavior and generate word-of-mouth. Examples of non-transactional activities that could be rewarded include:
- Contributing user-generated content on social media.
- Writing product reviews.
- Taking a product quiz.
- Completing a customer survey.
- Downloading the brand’s mobile app.
Service-related perks are also a great way to attract and retain loyal customers. These can include free alterations, express shipping, and money-back guarantees. However, be careful not to change privileges already widely accessible by your target audience, as this can trigger a backlash.
Moreover, ensure the rewards are relevant to your brand’s core values. For example, an apparel and outdoor gear retailer offers its members a wide range of benefits that align with its brand’s message of sustainability and an active lifestyle. A flexible point system that allows members to redeem their reward points for other options is another key element of its successful loyalty program.
Make it Easy to Spread the Word Through Referrals
A referral program is a great way to generate more customers through word of mouth, which can lead to more retention. For example, a company could have a loyalty program that rewards current members for referring new members by giving both of them a free month of membership.
Providing easy referral tools, such as testimonials and content they can share on social media, can help keep your brand front of mind with existing customers. Additionally, make it easy for customers to learn more about your loyalty program by including a dedicated page on your website.
The right digital loyalty program can set you apart from competitors and help your customers feel connected to the brand. It can also serve as a powerful source of first- and zero-party data, which can then be leveraged for targeted marketing campaigns that deliver a more relevant experience on an ongoing basis. That’s something no customer can resist! A smart loyalty strategy demonstrates this well. They use their loyalty program to collect customer data, which they then combine with their data on sales and purchases to create personalized emails for loyal customers.
Customer retention programs are proven to improve ROI, and acquiring new customers is significantly more expensive than retaining existing ones. In addition to traditional transactional rewards, digital loyalty programs can also reward non-transactional activities such as booking services, participating in a charity event, or even taking a stance on social or environmental issues.
A successful digital loyalty program will offer convenience for your customers, no matter where they shop or purchase products or services. To help you achieve this, consider integrating a mobile point-of-sale system that offers omnichannel customer identification and seamless redemption.
Connect your point of sale system with a digital loyalty platform to make this possible. This will enable the platform to receive purchase data, run loyalty logic to determine how many points a purchase is worth, and then relay that information back to your system so that it can update your member profile with the correct amount of points. To minimize IT dependency, look for a no-code programming platform that enables marketing and CRM teams to build features using a visual development interface without requiring technical knowledge of the software.
Make it Easier to Shop
A digital loyalty program is an excellent way to boost your business’s online presence and drive foot traffic. It also allows you to reward your best customers with perks and rewards they won’t find elsewhere, making them feel valued and motivating them to return for more.
Digital loyalty programs can help increase brand awareness and customer loyalty while promoting social media virality and influencer marketing.
Make it Easy to Manage
A loyalty program is only as successful as the data it generates. Having a digital loyalty platform that’s easy to manage helps you track customer behavior in real time, identify the most valuable customers, and create personalized marketing offers relevant for every shopper.
Loyalty programs can also help you gather important feedback that can give you insights into how your brand is performing and where it needs improvement. By leveraging the most popular brand loyalty metric, Net Promoter Score, you can learn how customers feel about your brand and use it to improve their experience.
Using the data generated by your loyalty program, you can incentivize activities that don’t directly relate to purchases, like recycling or working out. This can build identity loyalty and make customers feel connected to your business. Creating this type of connection is especially effective when your brand has a strong ethos that aligns with customer values. You can also offer rewards that align with your brand values to encourage customers to share and promote their experiences with you.