Communication Is Key To Customer Loyalty

Posted on: 12th January 2015

The average person holds around 10 loyalty programme memberships yet they use less than half of these programmes regularly. So what can you do to make sure your loyalty scheme isn’t lost in the sea of your customer’s membership cards?

The key is in fostering the relationship with your scheme users and there are a few ways this can be done:

1) It’s important to be relevant and this covers both how you present your scheme and how you communicate the benefits of being a member. Using personalisation in your programme ensures it integrates with your existing branding - look, feel and ethos. This is what your customer has already bought into, and if it isn’t broken, don’t fix it. When accessing the scheme, your customer should feel familiarity as well as being enticed to find out more. Recent research has found that 29% of customers would not be loyal to a brand if it weren’t for the programme.

2) As well as looking and feeling the part, what the customer will get out of your scheme is important too. Discounts were the reward of choice in days gone by, and they can be attractive at the start, but they can quickly turn your loyalty programme into a discount scheme that erodes profits and builds up price sensitivity, not loyalty. It’s important to treat your customers as individuals, and by offering rewards that resonate with them you can assist their engagement and loyalty in the long term.

3) One of the most important areas, so often little considered, is communication. You must understand your users and how their needs may change in the life of their experience with your programme. Your communications should be tailored to the needs of your users and how else will you know what these needs are without a direct line of communication in place? It’s been found that member satisfaction with a loyalty programme is nearly 4.6 times higher among users who believe that the communications they receive from a brand are relevant. A well-timed email can even brush off the dust and reignite the passion someone once had for your brand. 

Thriving loyalty programmes set themselves apart from the rest by simply staying true to brand. They consider what makes their users feel rewarded and they keep a two-way line of communication open, so their users really feel appreciated in the long term. Collecting data from their customers on what appeals and what doesn’t ensures longevity as these users change and move on over time. This means that even if a percentage of your customers do move on, you will gain new ones to replace them by staying current and relevant.

Successful, long term reward programmes take planning and can be slow burners but the rewards can be huge once your goals have been identified. It can be a daunting venture, but with incentivesmart’s help you can hit the ground running with your loyalty scheme.

 

Contact the team on 0845 003 8765 to find out how we can help you to engage with your customers.


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