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How to set up a customer loyalty program

January 9th, 2011 by www.immix.net

One promotional tool which can easily result in bigger and more frequent sales is a customer loyalty program. Best Buy’s program is a perfect example: customers sign up for free cards which accrue points with each purchase. Many popular bookstores also offer cards which offer discounts and special promotions. Perhaps you’ve wanted to follow in these franchises’ footsteps and offer a similar program, but weren’t sure how to go about it. It turns out that your new company website can be a great tool in getting the program off the ground.Before you start marketing your loyalty program, you should have a good idea of what your own version will entail. Will it offer exclusive deals periodically, or will it allow customers to use “loyalty currency” in exchange for discounts and coupons? Most importantly, will there be an initial cost to join the program? Many well-known loyalty programs are free, so think carefully before deciding to charge.In addition to offering special deals, some loyalty programs help to foster a sense of community among their customers. This can be done both physically and online. For example, if you’re a musical instrument store, you might sponsor concerts in the area and offer discounts to customers. Online, you can create a message board for your customers to discuss your product and related issues. While this is not directly tied to a loyalty program, it can help inspire customers to return.You should already be collecting e-mail addresses from your loyal customers to send out periodic e-mails. This customer base is a great sample audience to test your program in. Inform them of the upcoming release of the program, include plenty of information about what the program will actually give them, and perhaps offer extra benefits for your existing customers (or a referral program to rapidly increase your customer base).It’s helpful to have a specific team focused on increasing membership once your program actually starts. This team can be in charge of utilizing social media, physical and online advertising, e-mail, and other venues to attract new customers. Remember, a customer loyalty program can be as simple as a “frequent purchase” program or as complex as an online marketplace where users can spend points. No matter what, these programs are excellent ideas for boosting your salesand the impression you leave on the customers who make them.