{"id":708,"date":"2015-03-31T13:56:24","date_gmt":"2015-03-31T13:56:24","guid":{"rendered":"https:\/\/blog.ladsolutions.com\/?p=708"},"modified":"2023-04-01T10:05:20","modified_gmt":"2023-04-01T10:05:20","slug":"5-tips-for-an-effective-customer-loyalty-program","status":"publish","type":"post","link":"https:\/\/ladsolutions.com\/blog\/5-tips-for-an-effective-customer-loyalty-program\/","title":{"rendered":"5 Tips for an Effective Customer Loyalty Program"},"content":{"rendered":"

\"Customer<\/a><\/p>\n

While visiting a newly opened Cinemark theatre here in Los Angeles I encountered a most innovative example of a customer loyalty program. Definitely somebody thinking outside of the box and coming up with a method for transforming the proverbial \u201cstick\u201d into a \u201ccarrot\u201d.
\nIn this new age of our all feeling as if we must be connected to our smart phone at all times, movie theater admonitions to silence and refrain from using them are like flight attendant pre-takeoff safety talks. But Cinemark has developed an app for your phone that allows you to enter \u201cCinemode\u201d. If you do so when prompted before the movie and keep it in silent mode and refrain from using it during the movie, you receive rewards.
\nDigital coupons for discounted concessions and tickets are then automatically sent to the \u201cRewards\u201d section of the App. The first effect is Cinemark avoiding coming across like a parent or teacher admonishing a child be polite and courteous. But it also transforms the desired result into a positive experience rewarding customers for their participation and incentivizing them to return.
\nThat last item is what an effective customer loyalty program should do whether your business is involved in B2C, B2B, \u201cBrick & Mortar\u201d or Ecommerce. Cinemark is actually a combo since their \u201cproduct\u201d is the in theatre movie experience but the ticket buying process is more frequently occurring online (and its rewards program is only a part of the App that provides movie show times, seat reservations and of course ticket purchase).
\nEvery business, small or large, should determine if it would benefit from a formal Customer Loyalty program. If so, properly designing the program is essential for it to be effective and most importantly, produce a return on your investment of time and resources in implementing it. Consider these 5 tips for an effective program:
\n\u201cKISS<\/em>\u201d<\/strong> \u2013 You know, keep it simple\u2026 smarty. Customers being able to easily participate is a good thing. Avoid too much fine print type stuff such as, \u201cGet a free burrito when you buy 5 (except for those purchased between noon and 2 on weekdays).\u201d Making it difficult to participate will result in an unrewarding program for your customers.
\nProvide Clear Value<\/strong> \u2013 Just like you need a good value proposition to get customers to pay for goods or services, you need a good one for them to participate in your loyalty program. Studies show that over 90% of customers rate the type of reward as \u201cvery important\u201d or \u201csomewhat important\u201d when they decide whether to participate in a loyalty program.
\nApplication Throughout Sales Funnel<\/strong> \u2013 See how your program can touch customers in whatever way they interact with you. In the Cinemark example, when customers check out movie times, its App reminds them they have a digital coupon in the rewards section that can be applied to their next visit. If you keep up with your customers via social media, determine if rewarding them for likes and follows is a possibility. Over one third of the population considers themselves loyal to one brand and they also are more likely to respond to advertisements for it via social media.
\nAvoid the Big Numbers Trap<\/strong> \u2013 Don\u2019t get obsessed with just getting as many customers into the loyalty program as you can (it\u2019s not akin to \u201cIf you build it [big], they will come\u201d). Instead make it relevant to your customers and especially the most valuable ones to your business. For example, maybe its not designed for returning regulars that buy mainly lower margin products, but instead to incentivize those that buy bigger ticket items.
\n\u201cROI<\/em>\u201d Measurement<\/strong> \u2013 Your customer loyalty program is just like any other marketing effort and you need to know if you\u2019re receiving a return on investment. And you should be thinking about your metrics at the same time that you\u2019re designing the program. For example:<\/p>\n