Loyalty, at the heart of the customer experience

Combined with a good customer knowledge strategy, a loyalty program is a proven tool in terms of customer retention. But why focus on loyalty programs?

• Bringing back your hard-won customers;
• Increase their expenses;
• Create a personalized relationship with each of them;
• Strengthen the reputation of your company by making your loyal customers ambassadors;
• And above all: feed your customer database that will be used to improve your services, products and loyalty program... In short, a virtuous circle!
  

New technologies have taken loyalty programs to another level (data collection, personalization, customer relationship management, ease of use, etc.), while maintaining the same basic principle: offering customers rewards in proportion to their expenses, to encourage them to come back.

A paper or digital program?

In the age of 100% digital, the classic stamp card may seem obsolete. However, due to the simplicity of implementation and the modest budget it requires, the implementation of a loyalty program with paper cards remains an appropriate option for small and medium-sized businesses.

Loyalty programs with a paper card

The advantages:

• Simplicity and economy! You don't need to use a digital solution provider. The budget required is therefore less compared to an online loyalty program.
• Accessibility! It is a program accessible to all clients, regardless of their ease with digital tools or their access to the network.

They are suitable for a program based on 10 stamps = 1 free item (or a discount).

Example: Coffee Soko, which also offers coworking spaces, uses paper loyalty cards with neat visuals. The program is available in 3 paper cards depending on the target clientele.

Digital loyalty programs

However, a digital loyalty program is more responsive to changing consumer behaviors and business needs in terms of personalization and data collection. It can be available in the form of an online account or a mobile application.

For customers: a mobile and personalized program

• Adapted to its digital habits: user journey increasingly focused on mobile platforms (information search, online reservations, contactless mobile payment, etc.).
• No longer be encumbered with paper supports and thus avoid the multiplication of cards in the wallet. It also prevents irritants (forgetting or losing the card).
• A more engaging program thanks to personalized rewards made possible by data collection.
  

For businesses: data collection

A digital loyalty program will allow you to build up an essential customer database to personalize offers and communication according to their profile (e.g.: new customer, occasional, regular, regular, VIP). Of course, they must agree to share this data. The provider of the chosen technological solution can advise you on the implementation of a personal data protection policy.

Loyalty programs in partnerships

As with many marketing operations, creating strategic partnerships with other businesses is an opportunity to study. You can set up a loyalty program in partnership with a complementary business that your customers also frequent. The partnership must obviously be a win-win so that each party benefits from the benefits of the operation.

Since buying local is at the heart of concerns, a regional loyalty program can then become a way to encourage customers to spend locally. Embrace the principle of co-opetition by joining forces with other regional businesses.

Platforms like Freebees make it possible to develop this type of regional programs. By buying at participating stores, customers accumulate dollars to spend at another participating store. The platform also offers services to businesses (customer relationship management, marketing support, performance monitoring, etc.).

From membership to reward

For an attractive loyalty program, two key words should be remembered: simplicity and generosity!

A simple membership system

Whether paper or digital, registration should be as simple as possible for customers in order not to demotivate them: use short forms and instead invite the customer to fill in their personal information later.

A fun program

The point system, like the programs of airlines and hotel groups, has also spread in the restaurant and retail sectors.

The principle? Customers earn points that they can then exchange for rewards. Attention, the conversion of points must remain simple!

How do I earn points?

• For the purchase of products or services. The most common way of working is based on $1 spent = 1 point earned, but it's up to you to establish your own points system based on the value you assign to each product and service.
• When the customer takes special actions such as leaving a review on TripAdvisor, rating the business on Facebook, or referring a friend.
• During special events: for example, organize days during which the points are doubled.
• While playing! And yes, gamification (Gamification) encourages participation by stimulating the spirit of competition and the feeling of success.
  

Chocolats Favoris encourages its customers to take on challenges to earn points. The application ChocoFan allows them to post photos of the challenges completed, to track the number of points accumulated and the rewards they can exchange.

Attractive rewards

The attractiveness of your loyalty program is mainly based on the added value perceived by your customers and the benefits they derive from it. They need to be able to benefit from the rewards quickly. They can be defined in advance (e.g. after 9 nights, the tenth is free) or exchangeable according to the customer's preferences. Try to vary the types of benefits offered:

• Products or services: a coffee, an overnight stay, a sample, etc.
• Rebates or gift vouchers in the form of credit
  

Recognizing the commitment of the most loyal customers by giving them a VIP status is a winning strategy. In his program Big Drinker, DavidsTea promises a special status to the most loyal customers. They receive gifts, exclusive tea samples, invitations to VIP events.

Stay in control!

Offering attractive rewards is great, but make sure your program is profitable. It is therefore essential to follow these few tips before starting:

• Define quantifiable goals before the program is implemented;

Examples: Increase my turnover by 10% in one year. Have 10% of customers who come at least 5 times per year

• Set a budget or a portion of your budget that you allocate to customer retention.
• Measure the results of your program, both in terms of financial profitability, but also in terms of brand awareness and customer satisfaction.
• Stay on the lookout! By collecting customer reviews, you can improve your loyalty program by limiting irritants or adapting the benefits it provides.

Our survey service

We can help you improve your customer knowledge by using surveys that will allow you to obtain an updated portrait of the profile of your current customers, their buying habits, etc., in order to improve your customer experience and why not assess their interest in accumulating points in your establishment as part of a loyalty program.

To find out more, contact us !

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Article written in collaboration with Acadia experience.

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