Maintaining an appropriate level of customer engagement requires a business to constantly develop new marketing strategies. So, if you want to retain existing customers and attract new ones, you need to make use of various types of promotional campaigns. One of the most effective options is to introduce a loyalty scheme.

How do you set up a loyalty scheme?

What is a loyalty scheme? The simplest way to define it is to say that it consists of long-term marketing initiatives aimed at building and strengthening relationships, and rewarding those customers who are most valuable to the company.

Loyalty schemes They stand out from other advertising campaigns thanks to the low costs involved in achieving the set objectives. It is also important to use loyalty schemes under specific, favourable conditions. A loyalty scheme will not be suitable for a product or service that has only just entered the market. The customer must first trust the company before this trust can be turned into engagement.

When preparing to set up a loyalty scheme, you need to go through a multi-stage and complex process. You also need to define key issues such as:

• clearly defining objectives and conducting a thorough analysis of competitors’ activities – you need to answer the question of what you want to achieve through the programme and what benefits it can bring, and to examine how this works for your competitors;
• understanding customer preferences – it is necessary to find out what customers’ shopping habits are and to categorise them according to their needs and preferences;
• defining the tax and legal framework;
• careful and thoughtful planning and design of promotional materials for the programme;
• designing a rewards scheme;
• building the necessary IT infrastructure from scratch or purchasing it;
• maintaining relationships and keeping in regular contact with programme participants.

Launching a loyalty scheme – on your own or with the help of a specialist?

Implementing the system is a complex and time-consuming process consisting of several stages. Of course, it is sometimes possible to implement a loyalty programme without the help of external partners. However, it is common to start out on one’s own, only to end up seeking help from professionals anyway. It is important to bear in mind that introducing such a system requires specialist knowledge and extensive experience in this field.

In most cases, attempts to implement a loyalty programme on one’s own are driven by a desire to save money. It may ultimately be a less expensive option, but the question is whether it will yield results as good as those achieved with the help of specialists. A lack of experience can lead to a large number of errors and shortcomings, which are difficult to rectify at later stages.

It is also important to bear in mind that making changes to the programme whilst it is underway will be poorly received by consumers. It is therefore a good idea to seek the advice and expertise of an experienced external firm, which will guide the company through this process step by step.

How do you set up a loyalty scheme in your company?

The key to a loyalty programme running smoothly lies in its excellent organisation and thorough preparation. This matter must be approached with the utmost care, precision and diligence, so that the programme generates the desired profits throughout its operation. It is advisable to use companies specialising in organising such programmes, so as to minimise the risk of errors and ensure that the programme itself operates as effectively as possible and enjoys a good reputation amongst customers.