5 Critical Questions To Ask When Creating A Loyalty Program

Thinking about loyalty but not sure where to start? Perhaps you’re looking to create a loyalty scheme this year but still need to map out what it will look like. Look no further: we’ve picked out 5 key questions for you to consider when creating your successful loyalty program. 

1 - WHAT ARE YOUR BUSINESS GOALS?

The first question to ask yourself is perhaps the most important: what do you want a loyalty program to achieve for you? Clearly-defined business goals will help you select the right details for your program. You don’t have to stick to one goal – a rewards program can achieve multiple objectives. Here are just a few:

• Drive new customer acquisition
• Improve customer retention
• Collect better customer data
• Create emotional loyalty
• Improve brand awareness
• Create more sales and revenue

For example, if you’re focused on driving new customer acquisition in your business, you’ll want to base your rewards program on encouraging referrals. You could give points to customers who refer their friends and family members to your business or give new sign-ups a special discount when they join your program. If you know what you want to achieve with a loyalty program, then you’re already one step closer to success. 

2- WHAT MAKES YOUR CUSTOMERS FEEL VALUED?

The next essential question is all about creating value for your customers. Many businesses discuss value in terms of competitive prices, but it’s not all about money. Your customers want to feel as though your brand knows and understands them at an individual level. Thinking about how you can make your customers feel truly appreciated and valued will help you create long-term loyalty. This is also a great way to differentiate your brand from competitors. 

“How can your loyalty program show that you care about each of your customers as individuals?”

“What kind of rewards would your customers actually use and enjoy?”

This brings us to the next question: what data do you have about your customers? If you’re collecting customer data, you can take the opportunity to really delight and impress your customers by offering bespoke, personalized rewards…

3 - WHAT KIND OF CUSTOMER DATA DO YOU WANT TO COLLECT?

Choosing the data capture method for your loyalty program will help you make key decisions for your business. Loyalty campaigns should be based on solid data, not guesswork. Our system provides you with meaningful insights at your fingertips – including custom queries and charts – so you can be sure your decisions are backed up by solid customer information. 

There are several different ways to capture data using a loyalty program. Check out the pages below to find out which method might work best for your business. 

Receipt Scanning

Burger King EMEA Receipt Scanning Case Study

Card Linking

EPOS Integration

CRM Integration

Capturing customer data serves two key functions in a loyalty program:

1. Targeted marketing campaigns – our system allows you to segment your customers based on a specific characteristic, and then tailor your marketing communications to speak to each audience. A targeted message is much more effective than generalised communication because it generates more customer engagement.
    
2. Personalised rewards – if you know your customers, you know what they want. As illustrated in our Loyalty Programs 101 guide, the rewards you offer need to correspond with your target audience. That’s what creates real value.

4 - WHAT BEHAVIOURS/ACTIVITIES DO YOU WANT TO DRIVE?

When businesses start thinking about loyalty programs, they often go straight to the money. They ask things like: how can we give out rewards and still keep our margins? Instead, think about what kind of customer behaviours and activities you want to drive. For example, you might want to increase purchase value, increase purchase frequency, or revive unengaged customers. D

ecide which activities you want to encourage, and then reward customers accordingly. Remember, you don’t have to just reward transactional activity. Go beyond transactions and reward your customers for any kind of activity, such as social media engagement or writing a positive review.

It’s important to note that many of the activities that businesses want to improve on all come down to one goal: creating emotional loyalty. Customers will spend 46% more money at companies that they have emotional bonds and ties to. You can check out our guide to building emotional loyalty here.

5 - WHAT’S THE CUSTOMER EXPERIENCE GOING TO BE LIKE?

Always start with the customer. Ask yourself questions such as: How can you create an experience that your customers won’t be able to get anywhere else? How can you make your loyalty program as easy-to-use and frictionless as possible? UX should be a top focus because a loyalty program that is difficult to use will disengage customers from the moment they join. Airbnb even credits a strong user experience for growing their business from zero to a multi-million dollar brand.  Check out our top 5 tips to improve the user experience of your loyalty program here.