As you know, at re:member group we specialize in automotive loyalty marketing. And along the way we have learned what makes an automotive loyalty program a success. In today’s fast paced, highly digitalized world, it isn’t enough to just create a loyalty program and hope it does all the heavy lifting for you.
The creation of a successful loyalty program takes into consideration how it interacts with customers, and how well it delivers their wants and needs. Loyalty isn’t a scheme it’s a relationship, and like any relationship, it takes time and hard work, but it is always worth the effort. Studies suggest it costs more to acquire a new customer than to keep an old one, so why not take advantage of that!
Things to think about when designing your program
Set a goal that you want your customer to achieve
For example, if you have an automotive loyalty program in place, your ultimate goal for them may be to redeem their points on a future service, or vehicle purchase. Without a goal for them to reach, they will have no motivation to earn points.
Think about what behaviors you want to reward them for.
Do you want to reward them for filling out a survey, getting their vehicle serviced, referring a friend? Decide on some behaviors that would benefit your company, and let them know how much you appreciate it by rewarding them.
Give them a head start
Do you want to reward them for the simple act of engaging, such as activating their rewards account? Giving them an easy way to earn points when they get started is like giving them a head start. We all know how the endowed progress effect works right? If not, it’s rather interesting, and you should read more about it here.
Make it easy for them to interact
Some loyalty programs make it so confusing to figure out how many points you have, or how you can go about redeeming those points. With our loyalty programs we make sure it is easy for the customer to keep track of their points, redeem points, and understand all the ways they can earn rewards. They can login and see all the important information about their account from any device, making it easy for them to be engaged in the program.
Continue to engage with your customers
We have all done it, signed up for a rewards program just to get a specific discount or benefit, and then it leaves our mind, and we never think about it again. Without interaction, a customer either loses interest, or forgets all about it. That’s why it is important to interact with them by sending them emails, or offers in the mail that allow them to take advantage of special discounts or events. If you treat them like they are important and not just another number, they will be more likely to be repeat customers.
Engaging the customer with a relevant message builds trust and keeps the company on the top of their mind for when they are ready to purchase in the future. According to Retail TouchPoints a customer’s overall satisfaction with a loyalty program is 4.6 fold higher when they receive relevant communications.
Continue to evaluate the existing strategies
Listen to things your rewards members are saying. We get customer feedback on a daily basis in our customer service department. Another way to get honest and helpful feedback is to send out surveys. Find out what existing strategies have been successful. Consistently listen to your customers on an ongoing basis to revise the program as needed. If you can understand the customer needs, then it is easy to craft a valuable customer loyalty program.
When a customer loyalty program is done right, it can be very rewarding. But if done wrong, it is just a waste of time. If you already have a customer loyalty program with us, hopefully you learned some helpful tips on getting the most out of your program. If you are interested in setting up a loyalty program for your business, or would like some more information, please give us a call at 952-224-8000.