How to Motivate Customers to Become Loyalty Program Members

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Everyone likes to feel special. Considering how frequently people’s lives can start to feel like a daily grind, consumers are eager to discover new ideas to spark up their daily activities. Companies can play an integral role in this process by crafting loyalty programs that offer meaningful rewards and other benefits of membership that are sure to bring a smile to their customers’ faces.

With the variety of loyalty programs out there today and the large number of brands most consumers purchase regularly, there is a tendency to be careful in selecting which memberships to sign up for. For this reason, companies need to not only consider what loyalty rewards they want to offer, but how they’re going to motivate consumers to participate in the programs they’ve created.

A sense of exclusivity

According to The Analytic Hospitality Executive, one of the first steps in maximizing the impact of a customer loyalty program is figuring out how to make those initiatives feel exclusive to members.

Mike McCall, a researcher for the Cornell Center for Hospitality Research, explained in his studies with co-author Clay Vorhees, he found that not every consumer who signs up for a loyalty initiative necessarily helps the bottom line, and it is usually customers who say these programs don’t make them feel special who aren’t contributing as much. To this end, McCall recommended that companies should carefully consider the profile of their ideal loyalty members if they want to achieve positive ROI.

In essence, segmentation is a must. While it might seem like a good idea to encourage a large number of consumers to enroll in a loyalty program, it’s actually more productive to identify ideal consumers and focus on attracting them. It’s the quality of the participants, not the quantity, that counts, and even customers appreciate when companies think this way. Additionally, by segmenting a client base by who might be most receptive to loyalty programs, businesses enable themselves to provide more highly personalized rewards and incentives.

Intuitive experiences

To find out what it takes to create a loyalty program that customers will be eager to join, Street Fight spoke with several industry professionals for their takes on the matter. Stuart Kiely of Swipely told the source that one important thing to remember is to make participating in membership initiatives simple. Clients shouldn’t need to alter their buying habits in any way, and the fewer steps it takes for them to register, the better.

Further, it’s also important that once customers start earning rewards, the redemption process is simple. Companies could use an online portal that includes a streamlined interface through which members can see their points and exchange them for desired items in just a few clicks.

Get the jump

Sunil Saha of Perkville told the news provider that another strong strategy is to motivate customers by offering special loyalty rewards just for enrolling. He explained that many companies have discovered it’s beneficial to give out “introductory points” tied to simply taking the time to sign up. When customers start the relationship feeling appreciated and seeing evidence of how their loyalty is valuable, they’ll be more likely to stay active in the program.

Every company needs to take a customized approach to loyalty because each client base is unique. Using private-label marketing solutions to develop a highly tailored loyalty program is critical if companies are to reap the full benefits of investing in these initiatives.