You’re planning a loyalty strategy. That’s great! Loyalty programs are excellent for capturing and using customer information to build deeper, more profitable relationships with your audience. Launch efficiently and innovate regularly. Use the right technology to execute and optimize resources but start with a solid foundation plan. Here are some key concepts for initial launch and ongoing maintenance.
Benchmark KPIs to Consider Tracking Towards
- 50%+ Penetration Rate
- 25%+ Increase in AOV
- 10%+ YOY Membership Growth
- 75%+ Annual Active Membership Rate
- <5% Annual Churn Rate
Launch Efficiently and Optimize Regularly
Now that you’ve identified what’s important to you as part of your loyalty strategy, here is a framework to ensure all aspects of your member lifecycle are optimized for success.
ATTRACT
Your loyalty program marketing plans should be integrated into your overall business and marketing strategy. Many brands run separate loyalty marketing plans, which compete for resources and create a fragmented experience. This can unintentionally reduce membership growth. Infuse opportunities to join the program across all channels and throughout your customer experience for best results.
ENROLL
How many questions are too many for an enrollment form? Easy answer – if you don’t have an immediate plan to use the data, don’t ask for it. Enrollment should be quick and easy but also set the right first impression. Explain how you’ll use the data you ask for, ensuring new members understand the value they’ll receive.
ENTRENCH
Building rapport with your membership base starts with the right onboarding process. Begin with program education, not just sales offers. Teach members how to engage and benefit from the program. Include program education, easy ways to earn, and redemption ideas in all channels. Educate your staff too; front-line associates can be the best advocates.
DISCOVER
Provide continuous ways for members to engage with the program. Offer easy-to-complete special offers and celebrate milestones. Gather feedback through surveys and forums and use this data to optimize the program.
GROW
Personalize the program experience, starting with organized data to maximize relevance. Special offers don’t need to be costly and should recognize members meaningfully. Personalization doesn’t have to be 1-to-1 or real-time initially. Set expectations and build over time, staying consistent with your approach.
RETAIN
Streamline internal processes to optimize messages and offers to your member base. Members notice when communication isn’t timely or appropriate. Avoid gaps that can hurt retention rates.
WIN BACK
Poor member experiences and lapsed activity create churn risk. Each scenario needs its own plan. Invest in offers or experiences to regain member attention. Equip your front line with tools to handle issues and give members ways to provide feedback. Use this data to improve and win back lapsed members.
Let’s keep the conversation going! We’d love to support you through this process.
