As a marketer, there are some telltale signs to look out for that may indicate that you need a loyalty program:
1. You are competing in a “sea of sameness”
If your product or service is at high risk of being perceived as very similar to competitors, in addition to adding features or benefits that differentiate you, adding a loyalty program can give you an edge. Don’t buy it? Look at the airline, hotel, rental car, and specialty retail industries. While a loyalty program alone won’t truly differentiate you, for countless industries and consumers, a strong loyalty program is the “tie-breaker” at the moment of truth.
2. Your “leaky bucket” looks more like a sieve
The leaky bucket analogy states that companies are always losing customers, so to maintain or build share, we have to keep that bucket full of new customers at a faster rate than we’re losing them. If you’re losing customers faster than you’re gaining them, it may be helpful to focus on retaining and delighting more of your existing base. Obviously, acquisition is critical to any organization; however, allocating a portion of your marketing budget toward a loyalty solution can help drive retention and maximize customer lifetime value, plugging more holes in that bucket.
3. You know nothing about your customers
Do you know your customers? I mean, do you really know your customers? Many companies preach at the altar of personalization, but to deliver that holy grail of customer engagement, you need solid and ongoing insights into individual customer behavior. What are they buying, not buying, how frequently, and in what combinations with your other products and/or services? Do you have a robust customer database that is continuously updated with their latest purchases and behaviors? A loyalty program establishes that 1:1 connection that enables these personalized engagements and provides the platform from which you can profitably grow your customer relationships.
These are just a few of the major symptoms that indicate some form of loyalty program may be right for you.
If you’re interested in seeing if a loyalty program makes sense for your organization, reach out to us at www.Brierley.com and we’d be happy to explore your options with you.
