What Shoppers Want to Know Before Joining Your Loyalty Program

Daniela McVicker
Daniela McVicker
Guest Contributor

Competition in retail markets is fierce and building brand loyalty is a challenge, so double checking whether your shoppers have received answers to their most pressing questions about your loyalty program can pay big dividends.

A retailer’s loyalty program is an important key to building trustful relationships with customers. Additionally, it can be a magical marketing instrument, repeatedly attracting customers back to the brand. A properly designed program helps both grab the attention of potential buyers as well as retain existing customers.

If your current loyalty program doesn’t bear fruit, you should examine your missed opportunities and their root causes. Often, a problem is your customers have too many unanswered questions related to your loyalty program. Let’s check what kind of concerns shoppers usually have regarding loyalty programs and the ways retail brands can best address them.

What kind of valuable benefits do you offer?

When a brand invites a customer to participate in a loyalty program, the customer usually asks himself/herself the following questions:

  • What specific benefits does this company’s loyalty program offer?
  • Do these benefits have any real value for me?
  • Is it worth it to spend my time and share my personal information to join this loyalty program?

You should address these concerns and explain what types of benefits your retail company provides, such as:

  • free merchandise
  • monetary rewards
  • vouchers
  • coupons
  • advance released products
  • other specific benefits

Also, it’s necessary to highlight the value of your offer. It’s a good idea to use such adjectives as exclusive, unique, VIP, luxurious, limited to strengthen your messaging.

Moreover, you can add phrases like “it will take you less than two minutes” or “you need to answer only three questions.” These statements often convince customers that the registration process will take them neither too much time nor effort.

What is your tiered benefits program all about?

Does your loyalty program consist of two or more levels of benefits? If your answer is “yes,” then try your best to clarify the following points:

  • How many levels of benefits does your loyalty program have?
  • What kind of benefits do you provide at each level?
  • What actions should a customer take to get to the next level?
  • What actions should a customer take to keep her current benefits?

If you want to design an ideal tiered benefits program, it’s highly recommended to analyze the best frequent flyer programs. Try to determine their key success factors and apply them to your retail business.

 

Screenshot source: https://www.delta.com/content/www/en_US/skymiles/medallion-program.html

How do customers earn points?

If you are developing a cash back-based loyalty program, it’s highly recommended to equate $1 spent to one point earned. This approach works much better than complicated schemes like “earn seven points per every $5 spent.”

Your customers are ordinary people, not math geniuses. So, don’t force them to solve equations. Design an easy-to-understand reward scheme and provide easy-to-follow instructions.

You should make it clear how many points a customer will receive if the following milestones are reached:

  • refer a friend
  • share product review on your website
  • start following your retail company on social media
  • share photo/video review on Facebook, Instagram, YouTube and/or Tweeter using your hashtags and tags

 

Screenshot source: https://www.kiehls.com/kiehls-rewards-loyalty-program

How can customers redeem points?

Active participants of loyalty programs are genuinely excited about getting their well-deserved rewards. And it’s crucially important to ensure they will not face any difficulties going through the points redemption process. To prevent possible issues, you should answer the following questions as detailed as possible:

  • In what ways can earned points be spent?
  • Is it possible to exchange earned points for products, coupons, or discounts?
  • Do points have an expiration date?
  • What is a minimal redemption?
  • Are there any special conditions of redemption?

“If customers can’t understand how to redeem earned points, it’s unlikely that they will remain loyal to your company. So, there is no sense to hide specific conditions of your reward program. You must be absolutely honest with your customers,” says Donna Brahman, a marketer at Top Writers Review.

 

Screenshot source: https://www.kerrywines.com/the-club

In Conclusion

Today, competition in retail markets is fierce, and it’s pretty challenging for a retail company to build brand loyalty. Fortunately, a perfectly crafted reward program can help in hitting business goals. If your current shopper loyalty program doesn’t run smoothly, you should double-check whether your customers have received answers to their most pressing questions.

About the writer: Daniela McVicker is an editor at RatedByStudents. Daniela is a creative person, who is passionate about branding, blogging and SMM, and has developed brand names and mottos for more than 20 companies, operating in industries from retail to aviation.

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