Providing a compelling value that keeps customers coming back time after time is the ultimate goal of all loyalty programs. Nearly 70% of customers say they are more likely to buy from a retailer with a loyalty rewards program, and 35% say they visit more frequently. Clearly, loyalty programs can help drive more repeat customer visits and greater spending.
But how can retailers create valuable, differentiated loyalty programs that build brand loyalty and trust?
- Identify Your Best Customers
The initial design of your loyalty program should focus on serving consumers whose behavior will be most influenced with incentives that have the high ROI for motivation and return visits. Cash-incentive plans have the best conversion rates to encourage customers to willingly sharing their digital data. Cash incentives also provide the kind of simple, immediate rewards your customers desire.
- Offer Simple and Immediate Rewards
Monetary incentives top the list by a wide margin. Simplicity and immediacy of the rewards are also key components to successful programs. “The days of cards offering 10 points per dollar or a 1% value proposition are over,” says Precima President Brian Ross. “The future is all about relevance and aligning the program’s value to the customer.”
- Personalize the shopping experience
Programs that send a signal to the customer they are highly valued drive brand loyalty. Personalization deepens the customer relationship, enhances engagement and encourages shoppers to return again and again to redeem their offers.
A cash-incentive program such as Encore’s Customer Loyalty Accelerator offers the permission-based transparency, simplicity, and immediacy that today’s customers are seeking. In addition, cash incentives have proven to be the highest motivator for positively influencing customer behavior and increasing brand loyalty. For more information, click here.