Customer loyalty programs can play a big part in attracting new customers and retaining existing ones. Improving customer loyalty is an ongoing challenge for business owners. Here are some great strategies for strengthening customer loyalty with a program that works.

Use Gamification

Gamification takes the usually loyalty program method of collecting points to earn rewards and makes it more fun and social. It also offers your customer the option to progress towards a goal with more milestones, like badges or levels, to show progress. This can increase loyalty and participation. You could gamify your program by adding the option to take part in contests, or scratch and win games, or to earn more points by sharing preferences. Use hashtags for social media to encourage consumers to share with their friends. 

Offer Easy Ways To Earn And Redeem Points

One sign that your loyalty program is working is that people are redeeming the points that they collect. Make sure earning and redeeming is easy. Give points often enough so that loyal, high-value customers get rewards within about three months and others within about six. 

Let customers earn points through an app or membership cards from for making purchases and other types of interactions. Offer them several types of rewards and update them regularly on their progress. 

Encourage Referrals

Customers need to know that the loyalty program exists if they’re going to take part in it. Referrals from family and friends can often be more effective than advertising. Consider offering a discount or awarding reward points to members who make referrals and to those they refer. The key to running a successful referral program is to offer a tempting reward that complements your brand experience. 

Promote Across Channels

An effective loyalty program allows users to use a variety of different channels so they can choose how they feel more comfortable communicating with you. You could improve customer loyalty using email, social media, apps, mailings, and in-store signage alongside some other methods to keep customers informed. If you change your loyalty program at all, automatically roll your loyal customers onto the new one so you don’t lose them. Always introduce loyalty programs with some fanfare and offer promotions to encourage new members. 

Create VIP Tiers

A lot of loyalty programs do well with different tiers that offer extra perks for the most active and valuable members. These perks could be more points for each dollar they spend, events for VIP members, early access to sales, free gifts, or free shipping. Find out what kind of perks will motivate your customers. For example, look at Sephora’s Beauty Insider program, which offers top members the option to exchange points for a $100 reward to spend in-store rather than redeeming points for specific products. Top members can access experiences like trips or makeup classes. Reward your most loyal customers so they feel valued and continue to choose your business over your competition and spend more.

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