5 Ways to Increase Your Loyalty Program’s Effectiveness

PICA_Pius
PICA
Published in
4 min readSep 11, 2017

So you’ve finally decided to start your own loyalty program. You’ve taken the time to implement it, and now you’re wondering, how will people find out about my program? These are typical questions asked by business owners, and for this post,you’ll find out the different techniques that will definitely boost awareness for your loyalty program. In doing so, you’ll experience the effects of increased customer retention, engagement and repeat purchases, a.k.a more loyal customers. And what business doesn’t want that? So before we start, here’s a relevant quote:

“Conventional business wisdom contends that it costs 10 times as much to obtain a new customer as it does to retain an existing customer.”

1. Teach employees to promote the loyalty program

How will your customers be able to avail of a loyalty program if your staff doesn’t know how it works? This might be the cause of unsatisfactory customer service, and no forward thinking business wants that. It’s important for a business owner to understand that your staff will be the first line of advocates not only your brand, but also for your loyalty program. So teach them the ins-and-outs of your program so that they can pitch the whole thing to your customers that still aren’t aware what your business can offer them.

“Just give ’em free stuff basically”

2. Share on social media customers who’ve availed or used the loyalty program.

This is a perfect way for your business to utilize social media’s omnichannel characteristics in order to have a wider reach. Think about it, when a customer avails of say, a free coffee after finishing 10 stamps, you take a picture of the customer (with his/her consent of course), then post it on social media channels: Twitter, Facebook, Instagram, etc. you tag the customer, and if possible, let them share it on their own social media channel for another reward. With this, you will be able to advertise towards a wider audience, and show people that yes, other people are using your brand’s program. This is a perfect way to utilize what Dr. Robert Cialdini, a persuasion psychologist called social proof, wherein people tend to like things, that other people like.

you will be able to advertise towards a wider audience, and show people that yes, other people are using your brand’s program

Look how he’s so happy getting a free box

3. Create a Referral System

People like getting things for free, so why not incentivize existing members of your loyalty program to refer their friends and family by giving them rewards for inviting someone to join. You hit two birds with one stone by not only rewarding an existing loyal customer, but by also being able to acquire a new customer. This is very valuable in that it is much more expensive to acquire a new customer than it is to retain an old one.

4. Advertise loyalty program through physical collaterals

A simple way to increase awareness for your loyalty program would be by printing out small posters or signage that says “have you tried out or new loyalty program? get freebies now!” or something along those lines. Post these around your business so it supplements all of your other advertising channels.

5. Do an e-mail/text blast

Another great way would be sending out messages to your customer database. Texting is one way to go about this since it feels very personal and your customers will feel much more excited and appreciative of the gesture. And with this, you’ll also be sure that you’re engaging them through all the different available avenues.

it feels very personal and your customers will feel much more excited and appreciative of the gesture.

It makes sense to do these kinds of techniques because of the fact that customers won’t start using your loyalty program if in the first place they don’t know that it exists! So try out these different techniques! it’s also more effective if they’re used to complement one another, So that you can get the word out that your business is finally starting to use its very own customer loyalty program. This can all be done at the same time to maximize results and make sure that you aren’t wasting all of the available options.

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