Loyalty schemes are very popular these days. Virtually all companies, regardless of the sector in which they operate, are choosing to introduce this marketing initiative. However, this initiative is not always implemented properly. On the contrary – the project often seems to be carried out without any clear plan. The article below sets out a simple plan to help you avoid unnecessary mistakes when implementing a programme in your company. What mistakes should you avoid when implementing a loyalty scheme? What should you bear in mind?
Have a plan
The lack of a well-thought-out strategy is the most common cause of failure for the majority of projects. Without a sound plan, a programme may prove unworkable or even financially detrimental. First and foremost, consider what your objectives are. Define them clearly and, ideally, set a timeframe for achieving them. This will help you plan the entire operation and make any necessary adjustments as the programme progresses.
Next, select your target audience and consider what data you need to put the programme into practice. It is a good idea to group customers and offer additional benefits depending on the category they fall into. The plan should also include the budget you are able to allocate to this project.
Look after your customers
Even the most interesting loyalty scheme It won’t attract customers if it doesn’t meet their needs. Every programme must benefit the company, but you mustn’t forget those who use it. You have to remember that it’s a programme for them.
Ensure there is a good balance between the benefits and the customer’s contribution. It is not a good idea to offer benefits that are significantly below the average value of the products they have purchased. At best, the customer will simply not take advantage of such a scheme. At worst, they will stop buying your products and using your services altogether.
On the other hand, be prepared for the programme to prove so successful that it attracts far more customers than you originally anticipated. So make sure you have enough prizes to hand.
Set out the rules for taking part in the loyalty scheme
What are the guidelines for taking part in the programme? How do customers earn rewards? What are the benefits of taking part? Set out your rules clearly and concisely. Simplicity is your ally here.
If the programme’s terms and conditions are too complicated, you’ll put customers off. Introduce simple rules and leave nothing to chance. Customers need to know exactly what they’re being rewarded for and what benefits this brings them.
On the other hand, don’t stick to these rules too rigidly. The market is changing rapidly and you need to respond appropriately. Your customers’ needs won’t be the same as they were a few years ago either. So introduce new rewards from time to time. Also, keep an eye on engagement levels and the results of your activities. Perhaps the programme needs tweaking? Sometimes a small change to the terms and conditions can boost interest significantly.
