What Makes A Good Offer/Loyalty Program?
A good offer will make a customer want to sign up to your loyalty program immediately – and keep on using it.
There are a few key ingredients that go into creating an enticing offer:
1. A sign-up reward
A sign-up offer gives the customer a taster of how the loyalty program works. They are also more likely to return to redeem their reward and continue with your loyalty program.
2. A good end reward
If the end reward is not good enough or seems too ‘salesy’ or ‘stingy’, a customer may not bother joining your offer at all.
For example, a 2% discount on shoes the next time they visit your clothing retail store is not a memorable or generous enough reward for all their purchases. This will not encourage people to join and become loyal.
The reward should be worth the customers’ while. Freebies such as vouchers or products (that of course don’t hurt your bottom line) always go down well.
3. Interim rewards
4. A reasonable number of stamps to collect
If a customer is required to earn too many stamps to achieve the reward, this can make a merchant look greedy and put people off using the loyalty program.
For example, 10 stamps to achieve a free hand massage with a manicure is much more enticing than 30 stamps. And one stamp per $10 spent is more reasonable than $100.
You also need to bear in mind how frequently a customer patronages your businesses and how much they spend on average, each time. This will help determine what is a reasonable amount of stamps your offer should have.
Learn how customers collect stamps.
5. Not too many offer choices
Merchants are able to set up multiple offers. However having too many offers to join can be confusing for the customer.
This also means that their stamps could end up being spread across multiple offers and they don’t end up earning a reward easily (or at all). This is demotivating and may put people off using your loyalty program.
A minimum of one and a maximum of three offers per business/location is proven to work well.
6. A generous expiry date
Merchants are able to set up a reward expiry date. This means a customer needs to redeem their reward by a date that you predetermine.
If the expiry date is too soon and not realistically feasible, this can cause frustration and disappointment/ complaints from the customer.
Ideally, we would encourage you to have an open ended expiry date so a customer can redeem their reward at their leisure.