Customer Loyalty Programs Should be Simple
Loyalty programs have been around for a long time and some of the simplest ones are the best used programs. Making a loyalty program difficult to understand and implement makes customers unlikely to use it. The KISS, ‘keep it simple, stupid’ is the best policy when developing a loyalty program.
Basic Benefits of a Loyalty Program
Before going off the deep end with the development of a loyalty program consider why companies and businesses develop a loyalty program.
- To keep existing customers. It costs more money to develop and foster a new customer than keeping an existing customer. By providing existing customers with incentives, specials and deals, they will continue to be happy satisfied users of the product or service.
- To increase the spending of existing customers. Businesses can leverage existing customers by understanding their behaviors and promoting products or services they may need in addition to the current products they use. This is a two fold process. The first is to get customers to buy more of the same product and the second is to shift their spending into higher profit margin products.
- To find new customers. Developing a new customer and broadening the customer base is important.
The greatest value of a loyalty program is to record and understand their customer’s use of the product. The consumer behavior data is just as important as providing loyal customers a tangible coupon, discount or deal.
Ease of Use
To be of any advantage, customer loyalty programs have to be used. They must be seen by the consumer to be beneficial, easy to use and of value. Difficult to follow, convoluted points systems will not be used. Any loyalty programs that are hard to follow, difficult to attain points or rewards can generate feelings of animosity toward the business, which in turn will lead to unhappy customers.
Big companies offer special deals and discounts as a part of their customer loyalty program. Some programs are simpler that that. The number one criterion for a loyalty program is that it has to be understandable and easy to use.
Simple is Best
These programs are easy to understand and easy to use. To be the best benefit to the business, they must have a registration sign up so user information is obtained. This simple form can be used to obtain customer information regarding location, age and household information.
Remember happy customers come back and if your loyalty program is simple to understand and offers the customers a reason to return they will return.