6 Things Customers Want From A Loyalty Program

May 10
Customer Loyalty

6 Things Customers Want From A Loyalty Program

Understandably, businesses have many questions when they are implementing a digital loyalty program…


What rewards should we offer? How do I promote it? How do I get customers to sign up? And so on.


While these are all very valid questions, the first one you should be asking when first starting out is: what do customers want from a loyalty program?


Answering this question first will help you create an effective rewards program from the get-go, and will make the rest of the questions much easier to answer.


So let’s dive-in and take a look at what customers generally expect from a loyalty program…


1. Valuable Rewards

Valuable rewards

Obviously, the number one benefit customers are chasing from your loyalty program is the rewards. This is the main incentive that encourages customers to sign up.


It’s important to remember that if the customer is going to enroll in your program, it is only fair that you provide a reward of value in return. It is an unwritten agreement.


There are many different types of rewards you can offer your customers, and they won’t all work for your particular business. Therefore it’s important to invest some time into figuring out what rewards suit both your customers’ and your business’s needs.


The best types of rewards are those which please your customers and boost your sales simultaneously.


Don’t be afraid to think outside the box either. Sometimes offering experiences can be much more effective than giving away products or discounts.


Let’s say you run a restaurant – perhaps loyalty members gain access to a complimentary cooking class or VIP night where you offer up new foods your kitchen is trialing. You can also use that opportunity to upsell other products.


Consumers are also increasingly aware of global environmental and social issues, and like to know that local businesses are supporting the community. Therefore, incorporating social responsibility into your rewards program can also be a very valuable appeal for consumers to do business with a brand. You can read more about this here.


So as you can see, while it’s obvious that customers want rewards from a loyalty program, it’s not so obvious which rewards will be most valuable.


In a nutshell, it depends on your business, your clientele, and what kinds of rewards you want your loyal customers to enjoy. You are welcome to ask for our advice if you’re not too sure!


2. Simplicity

Keep Your Loyalty Program Simple

The best rewards programs are simple and transparent for the customer to understand.


Buy 5 X, Get Your 6th Free” type deals are popular because they are simple to understand and it’s easy for customers to track their progress.


This kind of offer is a popular choice for cafes, hair salons, car washes… generally any business that experiences the same customers returning every day, every week or every month consistently.


If a loyalty program is too complex, it will disengage the customer.

3. Convenience

Loyalty Program for Retail

In this fast-paced digital era of smartphones and instant gratification, everything’s gotta be quick and convenient, or else it gets dropped. Therefore, having a rewards program that is quick, and easy to join and easy to use, is essential.

Any promotional material you have displayed in-store for your loyalty program should mention how simple it is to sign up and should remind customers that it gives them access to exclusive offers that will save them money.

The more you can streamline every step of your loyalty program, the more likely it is to be successful. Loyalty card apps are unparalleled on this front.

Starbucks has made its rewards program so convenient that by the end of 2017, 10 percent of all Starbucks transactions around the world were being made through the app (that percentage has no doubt risen now).

Hotel chain