In my previous loyalty blog post, we covered why customers are loyal to a brand. Now, we’re diving into how to build a meaningful loyalty program that amplifies your brand and builds long-lasting relationships with your customers to drive business outcomes.

Part 1: Building Loyalty for Your Brand

Once we know why customers are loyal to your company, we can create loyalty-driving initiatives to amplify that brand affinity and fuel more long-term relationships. We call this “Little L Loyalty.” What matters to your brand and your customers will dictate how we drive those meaningful relationships. The goal of all of these efforts is to expand the existing loyalty in a measurable and impactful way to reach your business goals.

The ways we can impact loyalty for customers come to life in a variety of strategies and tactics. To drive customer engagements, you’ll want to create a mix of these different levers to amplify your brand loyalty in a relevant and meaningful way.

Always-on rewards & points

DEG + SessionM loyalty partnership

What it is

These are always-on incentives that reward members for ongoing purchases and can encourage self identification for every transaction.

How it impacts behaviors

This drives self identification and ongoing value, regardless of specific purchases, and allows members to earn points and rewards that they can later use on future transactions.

Examples

  • Each transaction earns a customer points they can later convert and redeem for discounts and rewards.
  • A free item, discount, or service that is consistently available to customers on each visit. Common restaurant rewards are free appetizers or deserts for loyalty members.

Member pricing

What it is

Pricing or discounts that are available only to members.

How it impacts behavior

Members have the ability to save money on transactions when purchasing. These are real-time rewards that are available to members only. This can make an interaction more convenient—such as free, expedited shipping—and can also be used as an acquisition strategy to encourage new members to join your loyalty program.

Examples

  • Free or discounted shipping.
  • Discounted pricing that is applied only to member transactions. Common grocery and retail loyalty programs include these types of member discounts.

Personalized promotions

What it is

The ROI of Loyalty Engagement ebook

Offers that are personalized and targeted to get a shopper to take a specific action or complete a specific transaction.

How it impacts behavior

These promotions are more sophisticated than an evergreen offer because they are based on member-specific data, such as past purchases and profile data. Offers are then targeted to achieve specific outcomes.

Examples

  • 1:1 targeted promotions that encourage increases in the number of purchases or visits based on individual customer behavior.
  • Offers targeted to customers based on past transaction or other profile or preference data.

Experiences & exclusivity

What it is

Experiences and exclusive rewards help validate a customer’s loyalty to a brand. These can be via a tiered loyalty program or can be available to members who have completed certain activities.

How it impacts behavior

These rewards build loyalty by making members feel special through exclusive invitations to unique experiences that celebrate their loyalty to your brand. This strategy can also be modified into an acquisition strategy to increase new member signups.

Examples

  • Exclusive member-only events, such as early access to sales, invite-only experiences, or other premium events.
  • Unique services that are only available to members, including VIP lines or access to premium concierge services.

Delight

What it is

Rewards that delight your customers are more evergreen to grow shopper loyalty over time. These rewards are either unexpected or celebrate customers for continued loyalty with your brand.

How it impacts behavior

Similar to experiences, these surprise-and-delight rewards build affinity over time by creating positive inflection points between the customer and brand.

Examples

  • Perks such as free items or discounts on a member’s birthday.
  • Free items or perks that are provide with no purchase necessary.

Genius Ideas: DRI DUCK Work TV Campaign

All of these tactics and strategies are ideas you can begin to think about as you build your loyalty program. But remember, you first need to understand what drives your customers to keep coming back to you after just one purchase. Read my previous blog to get started.

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