guide to building a customer loyalty program

The easy guide to building a customer loyalty program

A customer loyalty program is a structured marketing strategy designed to encourage repeat purchases and foster customer loyalty.

A customer loyalty program offers benefits for your brand, such as:

  • increased customer retention
  • repeat business
  • enhanced engagement
  • word-of-mouth referrals
  • valuable data insights
  • competitive advantage
  • increased customer spend
  • feedback opportunities
  • personalised marketing
  • brand advocacy.

Implementing a loyalty program can contribute to long-term business success and growth.

At Quickmail, we help all our clients to provide a slick, professional, and easy service to their customers, and we love seeing the benefits that businesses can reap from a good loyalty program.

What can brands do to nurture customer loyalty?

Rewards can be anything from free products, early and/or exclusive access to new products or events, point systems, awards, or exclusive merch.

According to the State of Brand Loyalty 2021: Global Consumer Survey, 68% of loyal customers will join a loyalty program if offered, and if the rewards and unique offers are additional incentives for them to continue their purchases.

So how can businesses build customer loyalty and offer a customer loyalty program that brings results?

A simple guide to building a customer loyalty program

It seems most customers expect businesses to have a loyalty program, and a loyalty program could give your business a competitive edge.

Here are some key components to implementing a customer loyalty program:

1. Understand your customers

Crucial to a successful loyalty program, is knowing what your customers want or what they would find valuable.

You can answer these questions by analysing their purchasing behaviour, demographics, and needs.

2. Define clear objectives

What does your brand aim to achieve through your loyalty program? Is it increasing customer retention, driving repeat purchases, boosting customer lifetime value, expanding market share, or enhancing brand loyalty and advocacy?

Having clear goals will guide your program’s structure and help you measure its success.

3. Choose the right rewards

Once you have researched and analysed your customer data, and set clear program objectives, you can now select rewards that are appealing and valuable to your customers.

Consider offering a variety of rewards to cater to different customer preferences such as discounts, freebies, exclusive access to events or content, early product launches, or personalised offers.

4. Make it easy to join and participate

To increase participation in your loyalty program, keep the enrolment process simple and user-friendly.

This means avoiding lengthy forms or complex requirements and look to provide clear instructions on how to participate and earn rewards.

5. Communicate via regular touchpoints

Regularly communicate with your loyalty program members to keep them engaged, by sending personalised emails or SMS updates about their rewards.

Communicate any exclusive offers, and program updates – this can help to make customers feel special and appreciated.

6. Seek to provide exceptional customer service

If customers put in any complaints or offer feedback, try to listen to what the customer is really saying.

Don’t just leap straight to more freebies or discounts – rather investigate what their pain point is, and then tailor your response accordingly.

7. Measure and Track

You can continuously tweak and improve your loyalty program by monitoring and measuring the performance of your loyalty program.

Track key metrics such as customer retention rate, repeat purchase rate, and average order value. Collect feedback from customers to identify areas for improvement and optimise the program accordingly.

8. Build emotional buy-in

Build emotional connections with your customers through great content, and personalised interactions.

Show appreciation and gratitude for their loyalty to create a positive emotional bond with your brand.

guide to building a customer loyalty program

A good loyalty program is designed to create a mutually beneficial relationship between the business and its customers by offering incentives, rewards, and exclusive benefits to those who participate in the program.

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