Loyalty programs can help to improve a company’s fortunes by encouraging customers to stay with them and spend more money. Such is the popularity of loyalty programs that they are expected to reach a global value of over $18 billion by 2028, up from $4.43 billion in 2021.
Of course, not just any loyalty program will do, making it essential to develop a plan that is best suited to your business. What makes a good loyalty program will also vary from company to company, and some types of programs will be better suited to certain industries.
Here we take a brief look at how to develop loyalty programs for different industries.
Step 1. Do your research
One of the most important aspects of any customer loyalty program is research. For example, hotels and retail businesses will need to know what their customers are looking for in a loyalty program so they can develop a program that’s appealing.
While many aspects of hotels and retail will be similar, other industries are very different in how they operate. For example, perks like room upgrades for repeat hotel guests or tiered discounts for retail based on purchases over time might not be so attractive for restaurants.
Step 2. Resonate with your audience
Research will do more than tell you which features will make a loyalty program appealing. They will also help you understand what makes your audience tick so you can create content that resonates with them.
You should ensure your content uses the right kind of language and images that appeal to your target audience to make them feel that you’re on their level. For example, humorous content typically will appeal to people from all walks of life.
Step 3. Market your program
The best loyalty program in the world will have little effect if people aren’t aware it exists, so make sure to tell everybody about it. Hotels and restaurants can let their guests know about their programs by leaving offers on tables or in bedrooms where they are clearly visible.
Shopping malls and retail stores can hire people to hand out leaflets about their campaigns, while offers can also be included with receipts when a customer buys something.
However, it’s also a good idea to use other methods like digital marketing and local advertising to give you a bigger reach.
Step 4. Enhance your business with loyalty programs
Such is the impact of loyalty programs that businesses of all sizes use them, and you can too.
In addition to the points we’ve mentioned above, remember that developing loyalty programs is an ongoing process. You can use metrics like your average customer lifetime value to help you gauge how well your loyalty programs are working for you. Monitor your campaigns and make adjustments where needed to help ensure your programs have the maximum impact.