Nurturing a relationship with customers is essential to growing recurring revenue and fighting churn. Launching a customer loyalty program is an important tool that businesses have used for years.
Getting Customer Loyalty Programs Wrong Is Damaging
Setting up a customer loyalty program might seem simple, but getting it right is important. Starbucks recently changed the way customers can earn points in their loyalty program, which caused some ire in their customer base. Unlike in days of yore, customers can now take to social media to voice their complaints, which magnifies whatever dissatisfaction Starbucks generated with their change.
Today’s infographic from Experian takes a detailed look at launching a customer loyalty program, beginning by asking if a loyalty program is right for your business. They conclude that a loyalty program is good for any company that seeks repeat business from customers over time. Though a bad fit for the construction industry or appliance repair, customer loyalty programs are perfect for restaurants, airlines, pharmacies and businesses that rely on repeat customers. The same applies to online businesses that wish to build and deepen their brands’ relationships with customers.
Getting Customer Loyalty Programs Right Means Enormous Benefits
The infographic notes that, “You can’t just call something a loyalty program, set it in motion and expect it to work … Careful planning, research, and preparation are necessary, and if done right, your business could reap enormous benefits.”
Experian lists four enormous benefits of running a successful loyalty program:
- Inspire customer loyalty
- Strengthen customer retention
- Deepen customer engagement
- Gather essential customer data
Launching and Maintaining Customer Loyalty Programs
If you have established that customer loyalty programs are right for you, and you have a plan that ensures a return on your investment in terms of both increased customer loyalty and increased revenue, then you’re ready to launch your program. Here’s where you work to get the word out about your program. Remember, communicating the value to customers is not only essential to the success of your program, it’s also yet another touchpoint to continue to grow the customer relationship.
Maintaining your program once it’s launched takes attention too. Don’t miss the very end of the infographic for tips on keeping your program fresh and exciting so customers stay engaged.
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