Are you doing it right?
Scores of companies of all sizes have loyalty schemes which range from a basic stamp-card to a fully implemented, tiered service with internal and external rewards. However, are they as efficient and successful as they could be? Here are Stampfeet’s three things to consider; our Hitchhiker’s Guide to the Galaxy.
Are you looking at your market?
This seems like an obvious one however, in the café sector, whilst Prêt À Manger has differentiated itself by using a surprise and delight loyalty scheme (if you're nice enough you get a free coffee) and Starbucks and Costa are leading the field with their apps, we are still seeing companies issuing decade old stamp-cards!
Look at the your industry, gauge where it’s at in terms of enticing customers to keep coming back and place your benchmark there. After that, if you really want to set yourself out from the crowd, look towards the future; do something new, don’t be the only company still just giving the tenth coffee free.
Are you listening to your client?
Are you? Are you doing market research on what they want? Are you getting those feedback forms filled out? Are you experiencing low usage stats of whatever loyalty scheme you currently have? Change it up, ask them what they want, get in touch, reward them for giving feedback; it’s extremely valuable. Statistics are telling us that a typical business hears from only 4% of it’s dissatisfied customers (Newell-Legner), increasing this is key to less dissatisfaction, as we also know that typically, 91% of these dissatisfied customers will not come back.
“Employees only ask for the customer’s name 21% of the time.” — ContactPoint Client Research.
A/B testing is also really useful, it can work to try one thing, one quarter and another thing the next, constantly tweaking and updating.
Are you analysing the behaviour of your client?
So, you have a system which works, everyone’s interested and people keep coming back; to really squeeze the value out of your scheme, grab data, as much of it as you can. Analyse what your client is buying and when in as much detail as possible. This means that you need to try and understand what each individual does, what Leslie, Hillary and Jack are doing, not just demographics. This is key to providing the best customer service and increasing the number of loyal customers you have. On average, loyal customers are worth up to 10 times as much as their first purchase (White House Office of Consumer Affairs) so make friends straight away.
In summary, don’t waste time throwing together a half-cooked, out-of-touch loyalty scheme that not only doesn't engage you’re target market, but also doesn't acknowledge their needs. Know your client. Know your market. And build on that knowledge by analysing the changing behaviours of the environment you operate in.