There are loyalty programs and then there are loyalty programs. The former are more about collecting shopper data than offering a reward for loyalty. The latter are about getting shoppers to act in an above-average way – rewarding you business in return for you rewarding them.
It’s easy to accrue points on purchase … what are you doing with them?
It’s easy to let a lucky customer win a prize … how do other customers feel?
Before you start with a loyalty program, work out the sort of program you want. This means working out the outcome for your business. It should be to drive sales and achieve a higher sales efficiency from your customers. If this is the case, then your loyalty program has to relentlessly target these goals.
In my experience working with a broad range of programs – at the single store as well as networked group levels – programs operating at the single store level work best. They drive loyalty to your business. Next, programs that reward shoppers and encourage them to return sooner work a treat.
Setting up and managing a loyalty program takes time to get right for your business. Invest in this and the rewards should be good.
In my newsagencies at the moment I am trialling three different programs to see which best achieves my goal of bringing shoppers back in sooner. As with any loyalty program tracking shopper engagement using the newsagency software is the key … tracking, reporting, tweaking.