It’s still quite early in 2017, and we know a lot of you are still working on keeping your New Year Resolutions alive. So while you’re at it, we’ve decided to help you with some much needed business advice when it comes to your Loyalty Rewards.
The e-Commerce focused industry of Loyalty Rewards is growing rapidly. With brands understanding more of what their customers’ needs are and how to serve them, no business can afford to sit in the dark while customers walk out their doors and through someone else’s.
The Loyalty Rewards programs industry, though still a toddler is ripe and ready for businesses like yours to step up to the plate, take advantage of all she has to offer, and lead the forefront to victory. So, to help polish your armor and ready you for battle, we have 5 keys to taking your Loyalty Rewards to the next level.
1. Tailor Rewards to Customers
Everyone on earth is unique. Even though you may find individuals with similar interests, hobbies and even faces, no 2 fingerprints are alike. This means, what one customer who frequents your business might like, may not work for the other.
This is why you need to study your customers to figure out what each one likes, and make Loyalty Rewards Programs to suit their unique needs.
For example, you might offer a N1000 discount on purchases and a section of your customer base would love it. However, there would most likely be a section that would not find this reward very helpful. After all, a reward is only enjoyed if the person receiving it finds it valuable. They might find value in a coupon that decreases shipping cost or might even want free products. This is why you need to tailor all your rewards to your customers so you are both getting optimal value.
2. Diversify your Rewards
This is one place where the rule – “Less is More” does not apply. Customers want more value wherever they go, and more diversity in your rewards offering will do just that.
A lot of businesses who offer diverse rewards at one point realized that customers stopped getting interested in their rewards after a few redemptions. For example if you offer a N2000 discount to your customers, they would most likely get tired of it after redeeming the reward a few times. Brand new clothes are exciting at first, but soon lose their value after you’ve worn them a few times.
By offering your customers more, like Free Shipping, Free Products, Vouchers, Early Christmas Bonanza Coupons etc, you are offering your customer more value. Plus, it would take them longer to get bored with rewards if they have more diversity keeping them of occupied and engaged with your brand.
3. Add an Explainer Page
As you diversify your rewards, it is important for you to ensure your customers have a clear understanding of what you are offering. You can take out the time to list out all the rewards on the rewards page, explain what the rewards are and what customers can get from them. You can even show a step-by-step chart of how they can get their rewards on time or faster to get them excited and invested in redeeming their prizes.
Need another reason to do this? How about getting customers to participate? People generally get frustrated when they don’t understand a concept, and even more so when the concept isn’t telling them what they need to know. Properly explaining what you offer, and better still, what you’re offering them, will get more people to participate.
4. Switch Up your Redemption Strategy
‘Diversity is key’, we’ve established this. But you also need to extend your diversity to how customers redeem their prizes as well. Making it easier for your customer gives you more leverage in their hearts and would make them even more eager to go for more rewards.
You can try making their prizes redeemable at your partner stores, or giving them options that allow them switch their redeemed prizes for something else, or sending it as a gift. This keeps the customers excited and opens doors of endless possibilities for both of you.
5. Understand & Evaluate your Customer Churn Rate
As much as we would all like to focus on the exciting part of Loyalty Rewards, it is very important that we take a look at decreasing the number of clients that leave your brand.
A Customer Churn Rate quantifies the customers you’ve lost by calculating the percentage of customers who leave your product or service. Calculating this is quite easy. All you need to do is find the percentage of customers you’ve lost over the total numbers of customers.
i.e: Customers Who Have Left ÷ Total Customers = Customer Churn Rate
Tip: To figure out if your customer has ‘Churned Out’ on your brand, simply take a look at your customer purchase date and take stock of how many repeat purchases you’ve had. Those customers, who did not have a repeat purchase for a substantial amount of time, have most likely left your brand.
Being able to discover and understand your Customer Churn Rate is a great asset to have, because it allows you properly take care of loopholes that cause customers to leave, and understand how customers relate with your brand.
Rome wasn’t built in a day, and chances are your brand wasn’t either. So even as you take these critical steps towards improving your brand, be sure to contact us if you need any help or assistance moving forward.
You can visit our website for more information on CityCard at www.citycard.com.ng or call 0816261699.
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