Best Practices For Creating Loyalty Programs - And Why They Matter

Loyalty programs are still one of the best ways for marketers to reward current customers and keep them interested in a brand and its products. That's especially important because gaining a new customer costs more than keeping an existing one. But how do you create effective loyalty programs? Loyalty programs are not one-size-fits-all, and the success of a program will depend on your offer and your target audience. However, there are a few best practices to consider:

1. Make Membership Easy:  The best loyalty programs are easy to join and fast—both for customers and for the employees signing them up. If a program takes too long or asks for too much information up front, your membership rate will suffer.  
2. Reward Frequently: If you reward customers frequently, they will be more likely to use the loyalty program you provide—even if you offer smaller rewards as a result.
3. Make it Easy for Employees: If your loyalty program requires incremental technology, equipment, or special training for employees, it's less likely to gain traction. Keep it simple for employees to offer, track, and promote.  
4. Leverage Partnerships:  Consider building partnerships with large employers, colleges, clubs, and local media that will enhance your loyalty program's effectiveness. Partners that have a good brand reputation will also give your brand a boost.  

Loyalty programs don’t have to be complicated or expensive. They are a terrific way to tell your valued customers that you appreciate them, and in turn, you can expect repeat business and increased retention rates. If you’re interested in developing a loyalty program, contact me at roger@ridpathcreative.com.