4 Ways to Attract and Retain Customers with a Loyalty Program.

Marketing Campaigns to Build Customer Loyalty

Customers who are part of a loyalty program generate between 12% and 18% more revenue than those who are not. This finding was established through a survey of merchants in multi-service and specialty stores, pharmacies, and large retailers in the United States.

With results like these, loyalty programs are becoming a key trend for future business growth and an opportunity to stand out in an increasingly competitive market.

But how can you go beyond a rewards system to attract and retain more customers? Here are some campaign options you can use to continue increasing your ROI with a loyalty program.

1. Campaigns to Delight Customers

Nothing beats an unexpected gift for your customers. You can send them an email marketing or bulk SMS campaign to give them something for their birthday or a special occasion, like their anniversary in the loyalty program.

Typically, businesses offer a completely free product, hoping it will lead to cross-selling. However, you can also provide benefits such as discounts, bonus points, free services, or product upgrades if you prefer to tie the campaign to a purchase.

For example, some restaurants invite customers to celebrate their birthday with friends, offering free drinks, desserts, decorations, etc., with a minimum purchase. This not only builds customer loyalty but also creates opportunities to sell and attract new buyers.

2. Referral Campaigns

Gain loyal customers and attract new buyers with a referral campaign that rewards your customers for recommending your business to their friends and family.

The key to success with this type of campaign is to offer rewards to both the customer making the referral and the new customer, usually giving a better benefit to the latter. For example, a 20% discount for the new friend who registers in your loyalty program and a 10% discount for the referring customer.

3. Social Media Growth Campaigns

There are many types of social media campaigns, such as contests, rewards for posting about your business, and the well-known and perhaps most effective tactic of using influencers.

However, working with influencers often involves high costs with uncertain ROI. So why not encourage recommendations from people who genuinely appreciate your brand?

Look for loyal customers who will promote your business, not for payment, but for benefits tied to your brand, such as double points in your loyalty program, discounts, free deliveries, exclusive products and services, etc.

4. Points Redemption Campaigns

When a customer redeems a reward from your loyalty program, you create a real and lasting connection with your brand. Studies show that customers who redeem rewards at a business shop there more often and are twice as satisfied as those who don’t.

As customers get closer to earning rewards, their purchase frequency increases exponentially. But this only works if you ensure they know how close they are to winning (or losing the chance to get something free) through a campaign to remind them.

A customer who redeems points is a loyal customer who will likely act as a brand ambassador, attracting more consumers to your business.

These were just a few ideas on how to take full advantage of customer loyalty to increase ROI for your business.

If you want to join the growth trend with your own loyalty program, contact us to become part of Leal.