In today’s market, where nomadic customers are a thing, customer loyalty is an asset just as valuable as the brand recognition of the logo. But achieving loyalty nowadays is very different to the approaches of years gone by. Customers are changing, and their wants and needs are evolving, too. Authenticity, purpose, and usefulness are vital attributes to brands wanting to thrive, and a well-designed loyalty program can be a game-changer for small businesses looking to demonstrate how they reflect their customers’ values.
Gone are the days when loyalty programmes were little more than stamps on a card yielding a free coffee. The modern loyalty scheme is a well-rounded and strategised approach to retaining customers, building brand advocacy, and even generating revenue. In fact, 9 in 10 businesses with a loyalty programme report a positive return on investment.
Here are five creative strategies to make your loyalty programme more exciting and rewarding for your customers — and help your business reap the rewards.
Gamify your loyalty programme
Gamification continues to be a growing trend in loyalty, driven by big brands like KFC, who use gaming elements in their loyalty apps to encourage customers to spend more time in their finger-lickin’ app. Gamification adds an element of fun and competition to a loyalty programme, making it more engaging for customers and supporting strategies to encourage customers to try new product lines.
Badges and challenges are a good starting point for adding gaming to your loyalty programme. You can reward simple behaviours, like spending milestones, to encourage customers to keep returning to your brand. Then you can move onto prize wheels, social media contests, and other forms of real gamification.
In fact, KFC uses a Rewards Arcade — powered by Antavo — to dial into its customers’ personal hobbies. People play retro arcade style games aiming to win prizes — a simple idea that’s executed incredibly well.
Personalise rewards
Personalisation makes customers feel valued and understood, and has paid dividends for many brands who are investing in loyalty. Tailoring rewards to individual preferences and behaviours helps demonstrate that your brand knows and values its customers.
Customised offers are a simple way to bring personalisation to your loyalty plans. This can be seen in action at many large grocery retailers, where shoppers will receive coupons based on their past spending history.
You can also add in birthday rewards, or mark appropriate special events with targeted offers. As an example, football fans might have a customised offer for a final!
Finally, exclusive access to high-demand items is a great way to show that you understand what’s important to your customers. Provide early access to new products or special events for loyal customers — this makes them feel like VIPs and fosters a deeper connection with your brand.
Go social
Encourage your customers to share their experiences with your brand on social media by running challenges or referral bonuses. This helps increase your reach into new customer segments, and also boosts your brand’s reputation. Or you can run Instagram contests where your audience needs to upload photos of themselves interacting with your products.
User-generated content — or social media content that people make featuring your brand — is an incredibly powerful marketing tool, and you can encourage people to create this through your loyalty programme. This can tie into tiered reward schemes, whereby you reward specific actions outside of spending money with your brand.
Don’t forget the “warm glow” moments
Have you ever heard of the surprise and delight effect? Unexpected rewards can be a really powerful loyalty tool. Give your customers a warm glow by surprising them with an unexpected offer. This could be a free coffee, surprise discount, flash sale or invite to a members-only event. You can deliver rewards without making a fanfare about them — this helps your loyalty recognitions appear personal and genuine.
Reward things outside of spend
There’s a really exciting opportunity for brands to demonstrate that they understand their role in customers’ lives by rewarding their activity outside the buying cycle. Australian surfwear retailer RipCurl does this incredibly well. The surfing brand allows users to sync an activity tracker like Strava to their account and clock up hours spent surfing in exchange for points. This represents a genuine understanding of how RipCurl’s customers use its products and helps keep the brand front of mind even when the customer isn’t considering a new purchase.
An exciting and engaging loyalty programme can set your small business apart from the competition. By thinking a bit more creatively, you can create a loyalty programme that not only retains customers but also turns them into enthusiastic advocates for your brand. Implement these strategies to keep your scheme fresh, fun, and rewarding, ensuring long-term success for your business.
By Zsuzsa Kecsmar, loyalty expert and Co-founder of the fast-growing loyalty platform Antavo
