A savvy loyalty offering can create lasting and effective engagement for e-commerce customers. Here’s a roadmap for getting there.
By Kirsten Burkhard, Customer Loyalty Expert, Sweet Tooth Rewards
It helps to have a game plan in place before starting a loyalty program. Knowing what’s coming down the road helps you prepare for success and anticipate barriers. The process of launching an e-commerce loyalty program can be boiled down to five easy steps.
1. Set a launch date. First, determine when the loyalty program will launch. Typically, the process can take anywhere from one day to two years, depending on the type of program you’re looking to run.
No matter which implementation method you use, pick a date that provides adequate time to properly plan, design and build the program. Having this date in mind will keep both you and your team accountable while also making the program a priority on the brand’s roadmap.
2. Establish program goals. While the obvious goal of starting a program is to boost customer loyalty, it’s important to set more tangible benchmarks. Simply saying you want to improve loyalty is like telling a waiter you’d like to order food – it’s vague and undefined.
Pick a couple retention metrics to target with the program. Some of the most common ones include repeat purchase rate, average order value and purchase frequency. Once you’ve picked your metrics, measure them to establish a baseline. You’ll measure metrics against this in the future, giving you the overview you need to ensure the program is heading in the right direction.
3. Determine program structure. This structure should be directly inspired by the metrics you’ve chosen to measure: How should the program be organized to ensure the best possible results for each of those goals?
Defining what the program points are worth, how customers can earn them and what types of rewards will be offered are three of the most important elements to consider at this stage. These decisions should be heavily influenced by your ideal customer and should take their needs and purchase behaviors into consideration. That way, your program actually will add value for your customers!
4. Brand it. While the structure will have an impact on how customers interact with your program, branding will have an impact on whether they want to interact with it. While it might be easy to dismiss this step as less important, the reality is that your loyalty program is an extension of your brand.
Your program’s name and currency will be powerful tools that will allow you to create engaging, memorable experiences for your customers. They’re also the perfect place to how off your creativity. Consider Frostbeard Studio, a novelty candle emporium that sells scented candles inspired by classic novels. By naming the program “Bibliophile Rewards” and rewarding its customers with “Pages,” the company has created a unique experience that is memorable and positive. Branding the program was clearly not an afterthought, and the company has made a lasting impression that will keep customers engaged.
5. Launch and promote it. Once you’ve set and measured your goals, defined your program’s structure and created a unique brand experience, it’s time to officially launch. The emphasis of this last step is promotion. Getting your loyalty program in front of your customers is the final piece in this loyalty puzzle.
Effective promotion campaigns include email marketing, on-site calls to action and a dedicated explainer page that clearly introduces customers to the new program. By giving customers multiple chances to encounter your loyalty program, you maximize the chance of them engaging with it.
You can also do this by launching your program in stages. This means that you release different features one at a time, working out the kinks and adjusting your program’s structure as you go. This allows you to slowly introduce it to your customers, giving them the chance to get to know the program at their own pace.
No matter how you choose to go about it, the launch and promotion of your program will propel your customer loyalty through the roof, giving it lasting power and momentum.
Succeeding with loyalty
Launching a loyalty program isn’t difficult and will be endlessly valuable to your business. But remember – the program launch is just the beginning. Loyalty is not a “set it and forget it” tool, so be sure to reassess and readjust the structure and goals accordingly.
Once you’re off and running, the sky’s the limit with loyalty.
Kirsten Burkard is a Customer Loyalty Expert and Contributor at Sweet Tooth Rewards. Follow her on Twitter – @kirstenburkard.
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