4 Ways To Implement A Proven Customer Loyalty Program
The rise of online shopping has resulted in bricks and mortar businesses looking for innovative new ways to keep customers coming through their doors, says Josh Harrison, COO of point of sale cloud company, Kounta.
Bricks and mortar businesses will always have the advantage of providing service with a personal, human touch over online stores – a key factor that will ensure that bricks and mortar retailing will continue to thrive.
Having sales, offering discounts, a good range of products, personalised service and creating a great shopping atmosphere is necessary as a bricks and mortar retailer, but how do you ensure that your regular customers don’t just head online and stay there?
The answer is simple; implement a customer loyalty program. But not just a basic “stamp your card” style loyalty program, but one that is unique to your store and brand. A good customer loyalty program is not just one that will keep your regulars coming back day after day, but one that will also lure new customers.
The key to an effective loyalty program lies in offering rewards and incentives that aren’t being matched by your competitors, after all, loyalty works both ways. A business can only expect their customers to be loyal to them if and only if the customer feels that the business has been genuinely loyal towards them.
So, if you want to implement a good, strong loyalty program, here are some factors to think about:
Design a loyalty program that will influence buyer behaviour
Many bricks and mortar retailers have a loyalty program for the sake of it – and therein lies the problem. Ask yourself how the loyalty program will reward you as a business and your customers; is my program going to result in increased sales? Will the loyalty program improve my customers’ in-store experience? Will my loyalty program automatically make my customers brand ambassadors?
Design a loyalty program that ties in with the type of business you run. For example, if you’re a cafe owner, then your loyalty program will be one that rewards regulars with free coffee or food. But, if you’re a hairdresser then you should be aiming at making your customers your brand ambassadors. Have a loyalty program that will reward your existing clients for referring their friends to your salon, and also offer your new clients a discount on their first haircut.
Trust and transparency are particularly important, so a business should strive to ensure that the customer loyalty program that delivers exactly what you promise.
Exploit human nature subtly to get customers on board
Once you’ve established what kind of loyalty program works best for your store, the next step is to figure out how you to get your customers to sign up.
A tried and tested method is to give your customers a kickstart on their rewards just by signing up to the loyalty program. For example, if you have a clothing store, you could choose to give your customers a discount on their purchase or a surprise free gift if they sign up to the loyalty program. If you have a cafe, then you could entice your customers to join the loyalty program, by informing them they’ll receive two of the ten points that they require to receive a free reward. This works far better than merely stating that they need to collect eight points.
A good customer loyalty program takes advantage of human nature by making customers feel that they are closer to their goal than they actually are. People try harder to achieve a goal when they perceive that they are closer to achieving it, this is because artificial progress actually works nearly as well as real progress.
Everyone likes nice surprises, and occasionally offering the customer something valuable that they weren’t expecting (regardless of whether it is actually anything out of the ordinary) will always be perceived positively. If you can tie this to celebrations such as birthdays, anniversaries or holidays, which elicit positive feelings, then you’re onto a winner.
Train your staff to sell the benefits of your loyalty program
Now that you’ve thought of a unique loyalty program that will set you apart from your competitors, the next step is to train your staff in selling it to your customers.
As a manager, take some time out to explain to your staff what the customer program means and aims to achieve. Be sure to thoroughly explain that new team members on board – even if they might just be working for you on a casual basis. Without your entire team’s active involvement, you might miss some of the people you’re most interested in reaching.
Customers are more likely to sign up to the loyalty program if they understand the value of your program and how easy it is for them to get rewarded.
The key is to make sure that every staff member can talk about the loyalty program succinctly, while still getting across the benefits. You can also incentivise your staff by offering them a gift by having a friendly daily, weekly or even monthly contest to see who can enroll the most members. This creates a healthy competitive workplace and motivates your staff to think outside the box.
Get data insights on your customers by using technology
Loyalty programs have come a long way since the stamp card. There are a myriad of apps, social media platforms, customer management systems and even Point of Sale systems that can provide data and analytics, which means as a bricks and mortar retailer, it’s become easier than ever to figure out more information about your customers and their shopping habits.
Use the data gathered by each of these platforms to connect with your customers through targeted email campaigns, SMS or social media. For example, if you’re a bar owner, send out an eDM to a section of your database on a Friday morning with a special promo code which can they can redeem at the bar for specials on drinks.
Latest News
Scroll Media Recruits Costa Panagos From Twitch
Digital publisher network Scroll Media has employed ex-Amazon Twitch gaming executive Costa Panagos (lead image) to strengthen its Scroll Gaming capability. Panagos is highly experienced in game advertising and media sales professional with two years in account management at Twitch and three years in media sales at News Corp, so will bring his extensive media agency […]
Year13, Microsoft & KPMG Australia Launch AI Course For Gen Zs
School-leaver service Year13 has launched a new Artificial Intelligence course to upskill young people in AI, made in collaboration with Microsoft and KPMG, at an event to rally industry support behind youth AI fluency. The free online course AI Amplified which is part of Year13’s Academy aims to provide all young people with the opportunity […]
General Motors Snares Heath Walker From Scania
General Motors has announced the appointment of Heath Walker (lead image) as the new marketing director for GM Australia and New Zealand, effective April 23, 2024. Walker brings a wealth of marketing and communications experience gained from working across various industries, including IT, sporting, and auto – notably Tesla, Nissan and most recently, Scania in […]
VML Launches New “Envoyage” Brand For Flight Centre
VML unveils new brand for travel operator Flight Centre. Alas, no sign of those paid actors pretending to be pilots.
Subaru Places Media Account Up For Review
Subaru puts media up for review, as adland journos get set for mandatory "agency drives off with..." headline.
TV Ratings (17/04/2024): Contestants Faced With Harsh Realities As Alone Australia Heats Up (Or Cools Down)
Alone still doing the business for SBS. Overly long train journeys not doing the business, but they persist anyway.
Ben Fordham Loses Number One Spot As Ray Hadley Celebrates 156th Ratings Win
The radio numbers are in! Discover who's off for a boozy lunch today & who's waiting for the dreaded HR death knock.
Gourmet Ice Cream Brand Connoisseur Launches New “Thrill Your Senses” Iteration, Via SICKDOGWOLFMAN
Rattling the old "truth in advertising" adage comes this ice-cream spot full of noticeably thin people.
Paramount’s Global Sales Boss: ‘Australia’s Converged Model Is A Blueprint For How I’d Like All Of Our Markets To Be’
Paramount's global sales boss gives local sales ops the thumbs up. Didn't weigh-in on the Lisa Wilkinson debacle.
TikTok Starts Testing Its Instagram Rival In Australia
In exciting news for piano playing cats & brattish pranks in shopping centres, TikTok unveils its Insta rival plans.
Man Wrongly Named By Seven As Bondi Killer Hires Lawyers
Struggling to save for a house deposit? Why not get wrongly identified by Sunrise!
Smartsheet Appoints Indie Agency Sandbox Media To Its Media Account
Can't stand your colleagues? Like to dob them in when they miss a deadline? These work management platforms are ideal.
Boss Not Letting You Come To Cannes In Cairns? Use This Business Case To Convince Them!
Stingy boss won't spring for a ticket to Cairns? Add this to your persuasive argument repertoire. Or grovel.
Alt/shift/ Brisbane Builds Portfolio With Ausbuild Creative, PR, Content & Social Account Win
The Brisbane comms/PR agency lands constructor Ausbuild. Also hoping for a discount on its new glass conservatory.
Young Guns Versus The Old Guard: Who Adds More Value to Our Industry?
Cannes In Cairns poking this hornet's nest in a lively debate. Just so long as the oldies can get up the stairs.
70% Of Aussies Don’t Have Green Power Plans ENGIE Says In Major Brand Campaign Via HERO
Are you the notorious "light leaver on-er" in your flatshare? Quell any infighting with this green energy news.
PrettyGood Launches Offering Brand & Media Solutions For Australasian SMEs
B&T applauds the charitable nature of this new agency. Although we'd hate to see it impact any Chrissie present sends.
A Blunt End: Dolphins Medicinal Cannabis Sponsorship At Risk
Yes, it's another NRL drug story. Yet, thankfully it doesn't involve coke in Kuta during the off-season.
Slew Of New Creative Hires At Leo Burnett Australia
Ahhh, all black! The outfit of choice for agency creatives, David Jones staff and everyone in Melbourne.
Under Armour Unveils Local “Live in UA” Campaign
American apparel brand set for yet another tilt at the Aussie market, as Nike declares "we'll see about that".
Pepsi Launches New Look, Refreshing Classic Fashion Staples Via Special PR
Are you always the bridesmaid, never the bride, as the old saying goes? How do you think Pepsi feels?
Pure Blonde Returns To A Place Purer Than Yours In New Campaign Via The Monkeys
B&T's always been a huge fan of the 'drink yourself thinner' diet plan. So big thanks to Pure blonde, vodka & tequila.
Spotlight On Sponsors: Carsales Strikes With Another Storm-Based Team
Think our hacks are living their sports journalist dreams vicariously through B&T? Confirm it with this reporting.
Commission Factory & AGL Energy Ignite Strategic Partnership To Empower Australian Energy Consumers
Concerned by global warming yet ran the fans non-stop over summer? Add to the guilt with this read.
Allied Nabs Nicola Gold From Pico International Dubai
Seasoned marketer relocates from Dubai to Sydney. Says the shopping's not as good but at least you can get a drink.
Nine’s Push For Gold, Silver & Bronze Ad Opportunities Could Break New Ground In Broadcasting
Nine insists that AI won't dominate its Olympics coverage. And not merely because Bruce McAvaney doesn't understand it.
TV Ratings (16/04/2024): Toxic City Girls Too Much For Farmer Bert
Fans calling out toxic behaviour on Farmer Wants A Wife, seemingly unaware that's the very premise of any dating show.
Kaimera Wins Afterpay ANZ Media Account
Have couriers even started to mention you're overdoing the online shopping? Probably best to avoid this Afterpay news.
Industry Reacts: Stuff Group Swoops In To Save 6pm News After Newshub Closure
As you'll read here, New Zealand's media's in a right state of flux. And nor have they forgotten 1981's underarm.
a2 Milk Launches “Only a2 Will Do’ Brand Platform In First Work From BMF
A2 milk drinkers tend not to bother everyone with their gut health issues & it's a lesson for vegans & the gluten-free.
Can You Recite It In Under 4 Seconds? Maccas Relaunches Iconic Competition With Modern Twist
Do you know what would make a fantastic ad? Drunk people at 3am trying to recite the ”two all-beef patties"
‘Liar, Liar’: Lehrmann Exposed As High Profile Defamation Case Comes To A Close
Having exhausted all avenues in his defamation case, is there only one option left for Bruce - reality television?
MECCA & Fendi Among Premium Advertisers For oOh!media Woollahra OOH Network Launch
If you've not been to the snooty suburb of Woollahra, the locals would like to thank you again for staying well away.
Yahoo Academy Announces Class Of 2024
This academy is strictly for "emerging leaders". Courses don't include 'sleeping at your desk' or 'bunking off early'.
Top 35 Media Leaders Announced For 2024 TikTok Agency Accelerator Program
Despite the ban threats, TikTok keeps marching on. Cementing its reputation as the Julian Assange of the tech.
AiMCO Announces First-Ever Diversity Webinar To Explore Inclusion In Influencer Marketing
Think influencer marketing's a little on the white side? This free webinar's for you. Sadly, it's not given TV ideas.