Loving and loyal customers - what could be more desirable for a modern company ?! In the conditions of fierce competition at all levels - from commodity to “struggle for the client’s wallet” - getting a truly loyal consumer is becoming increasingly difficult. Traditional loyalty programs have stopped working, because every day the customer’s demands are increasing, the formats of interaction with him are changing, and firms have to look for new methods of work in this direction.
Loyalty - what is it
Let's start with the definition. So, loyalty is a preference for some product (service) similar to the obligatory “victim” of the client. It is the presence of this sacrifice that speaks of true loyalty. Indeed, a simple repeat purchase can only be the result of a lack of assortment in this segment.
Often, a consumer agrees to overpay a little for a product, knowing its quality or understanding that the company (store) is located very close, etc. Sometimes we observe the opposite: it would seem that there is a store with the right product under the house, and the buyer goes to distant lands to your favorite seller. It is this sacrifice (time in this case) that is the manifestation of true customer loyalty.
Program vitality
Most importantly, the loyalty program should have an idea. Poorly thought out conditions for attracting customers only alienate customers from the company. What does ill-conceived mean? These are very difficult entry conditions, poorly selected communication channels, inadequate offers from the point of view of buyers' interest.
Therefore, before deciding to launch a customer loyalty program, serious work should be done. First you need to thoroughly analyze all the information available - from the purchase receipt and calls to the hotline to the results of external marketing research conducted on the industry of interest (product range). Only by the results of such a comprehensive consideration of the issue can we offer customers truly valuable terms of the loyalty program.
Work in stages
It is recognized by experts in this field that the most correct way to launch a program is to split the entire process into several stages. To begin with, they join the “club” in several chain stores (or in one or two regions). Then different groups of clients are distinguished - the interests of young parents and unmarried men (women) will be fundamentally different, for example.
This approach makes it possible to test the developed program “in the field” and make timely adjustments. It is especially important to keep this in mind when rebranding. Indeed, often, changing its image, the company seeks to forget about everything that it used to be. The client may not understand and do not accept such an attitude towards himself. And go to the competition. Forever and ever.
Simple rules
Developing a loyalty program is not an easy task. But following the proposed rules, you can achieve positive results.
Firstly, the purpose of the program should be clearly stated. This may be attracting new customers, retaining the "old", protection against the enticement of customers by competitors, etc. It is advisable to choose one thing.
Secondly, it is necessary to choose a key factor in the program. That is, to prepare for the client an answer to the question: "Why do I always come back to this seller?" Whether this is a special price offer or the opportunity to use unique products is up to the management of the company. An interesting example is the Oriflame company. Loyalty program - gifts that the buyer receives, fulfilling certain conditions of the purchase.
Thirdly, do not forget about the economic component. There is no need to remind that everything should be profitable: material or reputational. It is better that in the second case the material component is still present.
Tools
Theorists offer us quite a few customer reward mechanisms. Loyalty programs can be built on such tools:
- Bearer card with a fixed discount.
- Personalized card.
- "Category" card. Most often we use the terms “silver”, “gold”, “platinum”. A higher rank card holder is given more options.
- Progressive discount scale.
- Cumulative discounts and bonuses.
- Privileged Terms of Service.
- The ability to receive gifts, prizes, participate in the lottery, etc.
- Access to resources closed to other customers.
- Membership in the club.
Raising a loyal customer is a long, costly and troublesome business. But the effort is worth it. This is evidenced by examples of world-famous retailers. The main thing to remember is that the loyalty program is not a panacea, but one of the opportunities to stay in the competitive market.