We have already mentioned on many occasions that acquiring a new customer is much more expensive than retaining a company’s current customers. Customer retention is perhaps the main reason for creating a loyalty program. However, there are many more reasons to set up a loyalty program.
Do you want to learn how to design a loyalty program ? Here are the b to c database steps to create an effective loyalty program .
Reasons to set up a loyalty program
Before we begin with the steps to set up a loyalty program , let’s remember what they are and the reasons for establishing a customer loyalty program.
One of the main reasons for the existence of this type of program is the high competition in all markets , which makes companies look for ways to differentiate themselves from their competitors. A customer loyalty program is a strategy that a company carries out so that current customers continue to invest in its products and services.
Another reason to set up a loyalty program for your brand is the importance of loyalty in companies , since a loyal customer tends to buy more frequently, spends more than other customers, improves the brand’s reputation and attracts new customers. But also, with a loyalty program, you get:
- Improving the overall customer experience
- Boosting retention of current customers
- Reduce the cost of acquiring new customers
- Improving the company’s competitiveness
Steps to set up a customer loyalty program
For all these reasons, it is more necessary and important than retaining talent in the company: the employee club ever to come up with a loyalty program that allows us to improve customer retention and, therefore, increase revenue. Customer loyalty programs are very useful tools to ensure that current customers continue to buy.
We have created a step-by-step guide to setting up an effective customer loyalty program that will actually increase customer loyalty. However, before you begin, it is important to remember the need to monitor and control loyalty programs to ensure they work and implement improvements and changes as they are implemented.
Now, let’s go through the steps to set up a customer loyalty program :
Customer database or CRM
The first step before setting up a customer loyalty program is to create a database of all your current customers . Creating a customer loyalty program will be easier if you have a CRM.
Defining loyalty program objectives
In this step, you need to thoroughly understand what you want to achieve with uae phone number a customer loyalty program in order to define the objectives and make sure that they are clear, measurable and achievable. Some objectives of a customer loyalty program are: rewarding loyal customers, increasing spending by current customers or recovering lost customers.
Defining the target audience of the loyalty program
Although all of them are the target audience of a loyalty program, several types of current customers can be distinguished that influence the loyalty strategy and that will determine the strategy to be chosen for the program.
On the one hand, we have occasional customers , who are those who buy a product or service at a specific time, only when they have that need. On the other hand, there are regular customers, who buy regularly and finally, there are exclusive customers who are the most loyal, always turning to the same brand.
