Create a Loyalty Program in 5 Easy Steps

Tag: loyal customers

Create a Loyalty Program in 5 Easy Steps

Create a Loyalty Program in 5 Easy Steps

Whether you have set up a new business or are looking to expand your existing one, creating a loyalty program can help you achieve your target.  A good loyalty program can help you in creating a sustainable customer base. As it is far more expensive to gain a new customer than to retain an existing one, a loyalty program can be help in running a business more efficiently. Here are the top tips to create a loyalty program which will keep the customers coming back.

  1. Know your Customer Base: In order to create a loyalty program which is just right for your business, it is important to know your customer base well. Some of the most pertinent questions which are required to be answered are the buying capacity of the customers, the type of products bought by them, and the duration for which they have been your customers. Answering these questions will allow you to make more objective assessment of your customer base and fine-tune your program appropriately. Loyalty programs are most suitable for businesses which experience recurring orders at reasonable business intervals. Also, different enterprises require different types of loyalty programs.


  1. Decide How to Reward: Rewarding your loyal customers well is the key to the success of a loyalty program. Once you know the main features of your clients, you will be in position to select the most appropriate type of rewards to be offered. It is common wisdom that customers respond more favorably to frequent rewards, even if they are smaller in size. Similarly, rewards in the form of discounts or cashback are also more popular with clients. The businesses are also advised to take a conservative approach towards the rewards as it is far easier to increase these prizes in the future than to decrease them.


  1. Keep it Simple: Since a customer loyalty program is long term in nature, it is important to keep it simple. The program should be designed in such a manner that is not only sustainable but also requires minimal resources for its operations. It should also provide positive experience for the clients. The signup process for the program should be self-explanatory and there should not be any ambiguity about the rewards. It is important that the clients are able to anticipate the rewards that they are entitled to so that they do not feel being taken advantage of. It will also make it easier for the employees to explain the program to the customers. All the expenses or qualifiers should also be stated upfront.


  1. Leverage Promotional Tactics: While it is important to keep the program simple, it is imperative that some of the time-tested promotional tactics are embedded in the program. The businesses may benefit immensely from endowed progress effect where the customers are provided with ‘bonus’ to give them a sense of quick achievement. Other tactics such as exclusive invites to certain events and premium services may also be used to entice customers to sign up for the program. It should also be ensured that there is proper customer care service available to attend to any query raised by your clients.


  1. Use CRM Tools: For running an efficient customer loyalty program, it is important to not only set the goals and budget but also to monitor and measure the progress on a continuous basis. This task may become burdensome over a period of time, so you may think about taking help of Customer Relationship Management tools for this purpose. These tools can help you in tracking your customer interaction and analyzing the results of the loyalty program. Such analysis helps you in making prompt changes to the program to improve its efficiency. You should also ensure that your customer loyalty program does not cannibalize your new client acquisition initiatives.


Loyalty programs may help a business in retaining its customers and generate repeat business in an efficient manner. However, it is highly important to customize the program to suit your specific business objectives and customer base. It is also pertinent to note that loyalty programs are good for big and small businesses alike. So, do not ignore this vital tool to boost your client base.

Five Tips to Increase Customer Retention

Five Tips to Increase Customer Retention

If your company’s focus is solely on customer acquisition, you need to pause and reconsider your strategy. A study by Bain & Company in collaboration with Earl Sasser of the Harvard Business School shows that a 5% increase in customer retention rates increases profits by 25% to 95%. That should be enough motivation to focus on customer retention for your business.

Let’s first understand the “why” of Customer Retention –  

Some of the reasons to invest more in customer retention include:

  • Customer retention is cheaper than acquisition.
  • Loyal customers are more profitable than new customers.
  • Long-term customer relations boost your brand reputation
  • Repeat purchases from repeat customers translate to repeat profit especially when you accept payments online
  • Loyal customers are less price-conscious than new customers
  • Loyal customers stand by your brand even in tough times
  • Loyal customers offer free word-of-mouth advertising
  • Retained customers offer valuable feedback

Now that we have established why you must have a customer retention strategy, here are some tips which can help you build that plan.

Tips to increase customer retention

Like with any other business strategy, you have to be proactive and innovative to increase customer retention. The following are customer retention ideas you can implement for your business:

  1. Create a VIP program for your customers

The status an individual achieves in life can motivate them to act in a particular way.  When you accord your loyal customers an elevated status and give them exclusive offers, they become motivated to stick with your brand. They feel honored and their new status creates a sense of belonging and they will continue shopping with you.

  1. Target customers with special offers

The best CRM tools will also provide a lot of data about your customers. A customer’s purchase history comes in handy when you want to create specially targeted offers for them. Targeted marketing not only increases conversion but also builds a strong bond between your brand and the customer.

  1. Be where your customers are

If you want to compete in your industry, you have to keep up-to-date with consumer behavior and be present where they are available. If your data shows most customers are on social media, make sure you invest in a social media strategy and interact with your customers here. You have to provide a consistent and seamless experience on all channels if you expect to retain customers.

  1. Go big on feedback and act on the information

If you don’t understand your customers, there is no way you will improve customer retention. If for instance, you have installed a new feature on your site, you need to get reactions from your loyal customers and act fast on the information. Don’t believe your team alone but ask for regular customer feedback and leverage it to increase customer retention.

  1. Build a consistent customer experience

To build trust with your customers, you need to provide a consistent user experience.  For this reason, map out a consistent customer experience such that your customers can rely on you to always come through. Don’t offer nasty surprises thinking that it is a revolutionary move.

In essence, customer retention requires a clear-cut strategy touching all areas of your business. From your free payment gateway for website to the customer service support, use these tips to increase customer retention.