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Top Five Things Your Retail Loyalty Program Must Have

Raidious has loads of experience helping retail brands expand their digital footprints and drive sales, both in-store and online. In one area we are often asked to help retail brands is their loyalty program. Here are five things your loyalty program must have in order to be successful:


Duh. This is the easy part. For every specified dollar amount spent, you can afford to give a little something back to your customers. You just need to figure out what those increments are and then figure out how to give back to your loyal, paying customers. One of our clients, Big Red Liquors, rewards its loyal base with barware, bags of ice and for the really big, repeat spenders, VIP trips to bourbon distilleries. We’ll get into this a little more later, but don’t look at your loyalty program as simply a discount program. Think about how you can provide value to your customers. This shouldn’t always mean simply discounting your goods or services.


Not all customers are equal, and they would like to be treated accordingly. Much like #5, this is a no-brainer. You take care of the customers that take care of you. If they’re spending big bucks with you, make sure they know that you know that and that you really, really appreciate it. If you do, they’ll likely spend even more bucks with you. People love to feel special. It is your job to make them feel like they are the only customer in your world that matters.
If you create a valuable hierarchy, you’ll see customers work hard to move up that ladder. They will spend more with you and take more engagement actions you’ve asked them to do for that increase in status…if you make it worth the work (and the extra spend). You’ll also need to make it clear and easy for your loyalty members to know where they stand. One key thing to note: 32 percent of consumers do not know which tier they belong to in their favorite loyalty programs. MAKE IT EASY TO KNOW AND UNDERSTAND!


One way to make your loyalty program easy is to make sure it is all ONLINE. No more signing up with pen and paper and then entering the data at a later date. Build or buy an online portal that makes it easy to sign up, easy to share and easy on you and your customers to track status and deliver rewards. Having this tied into an email automation program is a great idea, too. That way you can send emails when customers move up a level. You can activate specific customer behaviors to re-engage. For example, if customers haven’t made a purchase in a certain amount of time or if you want to send customers products associated to a product they purchased from you at an earlier date, you can customize that messaging.


Customers need to feel like you know them and their needs. Customers’ overall satisfaction with loyalty programs is at its highest when they receive very relevant communication. Personalized and relevant messages are what build trust with your customer and keep you top of mind for when your customer is ready to shop again. If you can track and “listen” to your customer’s needs and then provide them with valuable information and opportunities, they will allow you more and more access.


And make it omnichannel. There are lots of ways for you and your customers to have a relationship. If you only focus on transactions, you are missing a big opportunity to use your loyalty program as a way for consumers to establish an emotional connection with your brand. Think about ways to connect in-store, on your ecommerce site and through social media. Make sure they all tie together and are trackable. Reward behaviors within each. Think about and look at ways to connect your customers to one another as well. Creating a community centered around your brand will reap huge rewards for all involved.

Building a successful loyalty program means eliminating your internal silos. Customers can and should be communicated with on a number of channels. Raidious has helped many brands connect all the dots and take a true omnichannel approach to their loyalty programs. If you need help bringing your loyalty program out of the dark ages, creating a real connection and trackable relationship with your customers, contact Raidious today!


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