How to Increase Loyalty Program Participation

loyalty program participation increases effectiveness

Loyalty program participation and enrollment are two completely different things, even if many of us choose to ignore it. Participation is when your loyalty program members are actively engaged with your loyalty program. Just because your program has members does not mean it is performing to its fullest. In this post I will explain how to boost your loyalty program participation rates.

 

Enrollment vs. Participation

As I mentioned before enrollment does not mean they are participating. Joining a program (enrollment) is easy, but getting someone to participate for the rest of their shopping life is the real goal.

loyalty program participation vs enrollment

As you can see in the graph below, people are enrolling in more programs but actively participating in less. This is because many retailers both online and offline give a great incentive to join and stop the relationship there.

This phenomenon is likely due to the fact that retailers are offering a really good incentive to join the program (which I recommend). However, they do not follow up that strong reason to join with an engaging program. You need to create a strong reason to join your program, but also follow that up with a program that encourages participation. Your loyalty program will not be effective with a ton of inactive members.

 

Boost Loyalty Program Participation

The question now becomes, what do I do to get all the members I attract to my program to stay and participate. Here are a 5 ways to encourage loyalty members to actively participate in your loyalty program.

1. Be Transparent

A survey conducted by Colloquy Loyalty found that the number one factor for program participation is that it is easy to understand the program. An astonishing 81% of respondents said this is important to them. So how do you adjust your program to these findings?

want-ease-to-understand

You want your program to be as transparent as possible. Make sure your members know everything they need to know to actively participate. This means you will want to be very clear on how they will earn and spend points.

Have an area of your site dedicated to informing members of how many points they will earn for different actions. The most important ones to be clear on are how many points are earned on each purchase (example 5 points per $1 spent) and how many of those points are required to redeem a reward.

boost participation with transparency

The example above is from Philip Kingsley and is the first thing you see when you land on their loyalty program page. It is impossible to not be aware of the two basics of their loyalty program. If you need help setting up a loyalty page of your own watch our video “How to Set Up a Loyalty Explainer Page.”

2. Lots of Ways to Earn Points

Your members have grown tired of those standard retail loyalty programs that only give points when you make a purchase. They want a program that gives them a bunch of different ways to earn points. The same study by Colloquy found that 50% of respondents said that they participate more in programs that have a variety of ways to earn.

want-variety

This is not hard to do especially with ecommerce loyalty programs. Online stores can easily reward for other actions like: social sharing, referring friends, birthdays and more. A solution like a Mobile Loyalty App from Mass Mobile Apps makes it easy to add variety to your online loyalty program.

3. On Site Reminders and Cues

In the online world you do not have a cashier asking every person who checks out if they would like to collect reward points on this purchase. That is why you need to remind your members by placing loyalty program reminders across your website.

Anywhere you can add mention of your program to your homepage, do it. Not only does this remind existing members to participate it also acts as a point of differentiation from your competitors. If you have a program and they don’t, a potential customer will likely choose you. Flash Tattoos has a few mentions of their program on the homepage.

reminders create loyalty program participation

You can also use other on site promotion methods like: floating tabs, slider or hero images, and even pop ups (just be sure not to annoy your customer).

4. External Reminders and Cues

Reminders on your site are great, but are only effective if your customers are visiting you frequently. If you really want to boost loyalty program participation you need to also need to communicate of your site as well.

According to many studies email marketing is the most effective and easy to use marketing tool available to today’s digital marketers.

email marketing is effective with loyalty programs

A great way to boost participation in your loyalty program is to combine loyalty and email marketing into a super campaign. Use email to send notifications when your members earn or spend points. This way they will be getting constant reminders of how often they are interacting with your program.

You can also send loyalty marketing material to your members. You can let them know that if they make a purchase this weekend they will get a bonus 100 points. Or, you can just email all of your non-program members and let them know about the benefits of the program, like in the example below.

screen_shot_2015-06-24_at_7.04.36_pm_360 (1)
Combining your loyalty marketing and email marketing together is one of the most effective ways to increase program awareness and boost loyalty program participation.

5. Obtainable Rewards

One of the biggest mistakes I see with any loyalty program is making the rewards way too hard to get. How is anyone supposed to get the 20,000 points needed for your reward if you are giving 1 point per $1 spent on your tea site. They would have to spend $20,000 to get a reward. Would you participate in that program?

Your loyalty program members become hooked on your program when they first spend points on a reward, not while they are accumulating points. That is why you need to make it easy to obtain rewards. I usually recommend giving enough points for a reward after a single valuable action like when a referred friend makes their first purchase. There is an exception though.

have more obtainable loyalty rewards

I do like offering a few what I call “asperational rewards.” These are rewards that are designed to be ridiculously hard to achieve. These give your program a talking point and can help differentiate your program. Just be sure there are plenty of obtainable rewards as well.

 

How Do I Know if Participation is Improving?

You now have a few things you can do to boost your loyalty program’s participation rate. But, before you race out and try all these new tactics at once, you will want to know how to measure success.

There are a few ways you can measure if your loyalty program is performing like: customer lifetime value, repeat purchase rate, and net promoter score. However, if you want to measure changes in your participation rate I recommend using your redemption rate.

 

Your redemption rate shows you the percentage of your issued points that are being converted into a reward. If your members are participating they will be spending their loyalty points. Start by performing the above equation today to get your base line. Then make some of the above changes and measure your redemption rate again. An increase in redemption means that your participation is on the rise.

Just remember that if your redemption rate is currently below 20% you may have a serious loyalty program problem.

 

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3 Time-Tested Retail Sales Promotions That Drive Foot Traffic and Build Loyalty

How do you entice people to buy more from your store? What do you do when you want customers to make purchases more frequently, or in greater volume, or if you’re looking to boost business during slow hours and more?

Whatever your goal may be as a retailer, by creating a time-sensitive sales promotion and having a good grasp on your target customer demographic, you’ll be able to incentivize the right actions, get them to respond, and grow your business in the process.

In this post, we’ll look at three retail sales promotion techniques that are worth their weight in gold when implemented effectively. They are:

So, the next time you’re stuck as to how you can increase sales, get new customers, or retain existing ones, you’ll have no trouble turning to the perfect promotion strategy for your goal.

Let’s get started.

The Power of Promotional Pricing

As a small business owner, you already know the power of discounting products to increase demand.

But which products do you give a discount on? And by how much? Or for how long? These are all questions that come to mind when considering the option of reducing prices. They’re also important questions due to the nature of how pricing affects consumer psychology.

For example, you might have heard about the power of ending prices with the number 9. Researchers have discovered that items priced at $39 sell more than the cheaper price point of $34. Or the overbearing power of the word “free,” which Dr. Dan Ariely has shown to motivate us even when the perceived value and price of two options remain the same.

Now, let’s take a look at a few of the more popular promotional pricing options that you can deploy in your own store:

  • Markdowns: This is when you reduce prices on a wide range of products in your store for all customers. This is especially effective when backed by a wider advertising campaign, be it through paid or unpaid channels.
  • Loss Leaders: When you know that certain products are in demand, regardless of whether it’s a luxury item like an iPad or everyday need like under garments, you can provide certain products at a steep discount to draw new customers to your store. Known as loss leaders, these products are great for selling overstocked items, increasing traffic to your store, and generating brand awareness.
  • Bundle Pricing: Bundling products is a great way to generate a higher perceived value for a lower cost that customers have a hard time staying away from. Whether it’s a “buy one, get one free” deal or a “3 for the price of 1” special, this tactic is great for making customers feel that they’re getting more for what they’re paying. As a bonus, this is a huge draw to then entice those customers to buy higher priced items once they’re in your store.

Retail sales to help foot traffic | Shopify Retail

Leveraging Point-of-Purchase (POP) Displays

Though you might be most familiar with POP displays from your visit to the grocery store, where you just couldn’t help but notice all those glossy magazines filled with celebrity gossip, you’ll be pleased to know that they’re one of the most effective ways for retailers to encourage impulse buying.

For example, you might have noticed that the last time you went shopping for clothes, there was a never-ending array of bins and displays filled with items that could be seen as “add-ons” or “up sells” as you make your way closer to the checkout.

The reason why these POP displays and the impulse purchases they generate are so effective is thataccording to research, almost 66% of all decisions to buy something are made while people are in the store shopping. And guess what? Almost 53% of those decisions are classified as impulse buying.

Well, it’s time to start thinking about what you could do around your checkout area to get consumers to buy more.

Here are a few examples of different types of POP displays:

  • Speed Bumps: As prospective customers get closer to the end of their purchasing journey at your store, you can intentionally draw their attention to products that they may have missed by strategically placing them along the path to checkout or even as they wander the store.
  • Dump Bins: These are bins full of products once again strategically placed to elicit curiosity in consumers and get them to “dig in” and find an item that they’ll add to their shopping cart as they stand in line to pay for what they came to buy.
  • Free Samples: This is a surefire way to build demand for any new products that you may have recently added to your store. Giving away free samplers of certain products invites customers to use them at no cost and though they may not reach for the full-price version right away, you can be sure they’ll think about it the next time they visit your store.

Optimizing point of purchase displays | Shopify Retail

Getting the Most Out of Loyalty Programs

Let’s face it, getting new customers costs a lot of time, money, and effort. Providing great service and creating customer loyalty programs that get customers to come back, time and time again, is far more profitable and efficient as a retailer.

Though you may not have the big-box retailer budget to launch a full-out customer loyalty program, rest assured, there are some great alternatives that also happen to be very cost effective as well.

The most beneficial of those alternatives would have to be a Mobile Loyalty App.  Your business can now implement a full blown loyalty program that will rival those of the big-box-retailers.  Mass Mobile Apps provides a solution that will meet all your needs!  With their solution, in exchange for rewarding your customers for shopping, you will be given the ability to reach them like you have never had before.  Each customer must download your app, and register in your program, and in doing so they provide you unprecedented access.  You are now able to send “Push Notifications” directly to their mobile devices, which appears just like a text message. With a wide variety of features that are designed to enhance the customer experience, and provide the retailer the most up to date marketing tools available.

Another alternative would be email marketing. It’s an effective way to drive customer retention and loyalty and starts as quickly as when you collect customer’s email as they checkout, and then email them about exclusive sales, discounts, coupons, and other promotional offerings for a limited time period. Not only will this incentivize them to visit your store again, but it will also increase the perceived value they have of being on your email list.

One simple way to do that in your store is to use a really handy app by MailChimp called Chimpadeedoo, which you could use alongside your iPad POS system. They’ve also got some great in-depth case studies I suggest checking out. For example, in one case, a retailer saw their email list grow from 250 to 10,000 subscribers in just one year.

Chimpadeedoo sales promotions | Shopify Retail

Another app you might want to check out is Belly, which helps local businesses connect with customers through a customer-facing mobile app and merchant iPad app, and helps you build loyalty by rewarding your customers each time they visit and make a purchase from your store.

Lastly, Don’t Forget To Track Your Efforts

In order for you to get the most benefit from running a sales promotion campaign, you must track the percentage of sales resulting from the promotional campaign. Ideally, you should be able to assign tracking codes or discounts to certain products within your POS system and generate a report to see how well you’ve done since first launching the campaign.

The other important component is setting a timeline for each campaign, not just to help your customers act faster, but for you to start looking at promotions from the perspective of seasonality. That will also help you to be far more strategic and give you enough time to plan everything in advance so as to ensure you’re not wasting your efforts.

How iOs 10 Empowers Mobile Marketers

 

ios10-1200.png

Apple’s iOS 10 updates are coming this fall — the public beta is now available for download, so the official release is likely closer than we think — and the host of changes will have a significant impact on mobile marketers. How can you be poised to take advantage of the changes when they launch? Here’s a quick primer.

SiriKit

This is one of the bigger changes. SiriKit opens Apple’s virtual assistant to developers, meaning they can build voice controls into their own apps. Siri will be able to order you a Lyft or Uber with a simple voice command.

Your move: Integrate your app with Siri as much as you can. It will help your product stay top of mind with consumers if they can call it up with a simple one-liner as they lie in bed on a weekend morning.

New Messaging Features

This one is pretty big, too. In an effort to compete with WhatsApp/Facebook Messenger, Apple added a variety of new messaging features in the iOS 10 updates:

  • There’s an iMessage App Store coming. Users will be able to add third-party functionality to messaging (i.e. stickers and GIFs).
  • Calendar scheduling and mobile payments. (More on the mobile payments in one second.)
  • Powerful iMessage capabilities. Send full-screen messages, hand-written notes, ‘invisible ink’ messages that are only revealed if swiped by the recipient (a little Snapchat touch there), and a ‘Tapback’ functionality to quickly reply with a pre-set message. You can also easily replace words with emojis, i.e. “Going for pizza or burgers” becomes “Going for 🍕 or 🍔.” Venmo, anyone?

Your move: As messaging functionality (and fun) continues to increase with iOS 10 updates, it’s time to consider investing more in SMS marketing. Coca-Cola, is wasting no time getting in on the action, as they’re poised to spend 70% of its mobile budget on SMS in the next fiscal year. It also means users want messaging that has the tone and feel of a personal message. Embrace emojis! 😜

Mobile Payments

 We’re arriving at a tipping point for the adoption of digital wallets, and the iOS 10 updates might push Apple Pay to the forefront.

in the U.S., we’ve had magnetic stripes on the back of our credit cards for a generation. But these days, chip technology is becoming more prevalent in the U.S. It’s called EMV, and most chip-card reading terminals can work with NFC, or near-field communications. NFC is a set of standards for portable devices. It allows them to establish peer-to-peer radio communications, passing data from one device to another by touching them or putting them very close together.

This new system supports contactless payment, which means a whole host of digital wallet options are opening up as the U.S. fully transitions to chip-based credit cards.

Your move: It’s a great time to adjust your app’s payment options. Digital wallets will foster ease of payment, and ease of payment could be huge for customer retention and acquisition.

Expedited app reviews

 Currently the cycle takes about 4-10 days. With iOS 10 updates, the expectation is 1-2 days.While Apple still reviews about 100,000 apps/week, it’s devised a faster process. This means that from the point of submission, you could be ‘live’ in front of consumers within about 30 hours.

Your move: Have your ducks in a row for rollout before you submit your app, because it’s not a potential two-week waiting game anymore.

Revenue Splits and Subscriptions

 Apps that use subscriptions will see a 70 (developers) / 30 (Apple) revenue split in year 1, and then in year 2, it will become 85-15. Subscriptions will now be available across allcategories, whereas previously it was limited to only a few.

Your move: Do subscription services make sense for your app? To qualify, you’ll need content that is updated or delivered on a regular basis — or you need to provide paid access to an ongoing service within the app, i.e. massive multiplayer online games.

Paid App Search

This will be new feature — but unlike Google AdWords, only one ad result will show at the top of keyword searches in the App Store. Mobile marketers can bid on keyword searches, but the competition for some might be very tight,and relevancy is going to play a key role here. Apple is apparently going to parse the app descriptions for relevance, which is the first time they’ve done that in any iOS release.

Your move: Write compelling, targeted descriptions of your apps if you plan to keyword-bid at any point.

Simple unsubscribes

 iOS 10 Mail will offer simple unsubscribes from marketing list e-mails, which is a potentially great feature for users — and makes prioritizing permission-based subscription more important than ever for email marketers. The exact repercussions of this will evolve once iOS 10 gets out of beta, but standard email marketing approaches will become even more important. In essence: good subject lines, relevant content, and offers and personalized approaches that resonate with consumers.

So, where should you start?

This is a jumping-off point for your thinking about iOS 10, which will likely be live by the end of September. For now, we recommend brainstorming strategies around how to use messaging more effectively (one of the bigger changes) and utilizing SiriKit to integrate with the voice of the iPhone.

See Original Article Here

4 Ways to Build Trust with Your Customers

What efforts do you take to build trust with your customers? Building solid, trusting relationships with your customer base is one of the best ways to retain them. In fact, News Cred’s recent study revealed that among millennials, the top three brand loyalty drivers include a great product (77%), followed by brand recognition (69%) and trust (69%).

Research also shows that retaining customers is much cheaper than acquiring new ones. The longer a customer is loyal to a brand, the more money they spend. What does that mean for your bottom line? According to a study cited by Retention Science, increasing customer retention by just 5% increases profits by 25-95 percent.

Needless to say, building trust with your customers is a worthwhile and profitable endeavor. Here are four ways to build trust with your audience:

1. Communicate with customers on a regular basis

You shouldn’t just contact customers when you want them to make a purchase. If customers feel like every communication is a sales push, you’ll dash any hope of building trust.

Instead, communicate with your customers on a regular basis. Consider emailing a regular newsletter, sharing links to helpful articles on your social media channels or providing how-to articles on your blog. Customers appreciate useful information that makes their day a little better.

For example, if you run a fast casual restaurant, create a monthly newsletter that highlights upcoming menu items and welcomes new staff.

If you run a cleaning company, share an article about best ways to clean up nail polish, like the example below.

Every interaction builds trust. Plus, if customers hear from you on a regular basis, your occasional promotional email won’t feel out of place. It’s just another message from a friend.

2. Provide quality customer service in your store

One of the best ways to gain trust is to offer your customers service they can’t find anywhere else. Here’s a quick checklist to make sure your service inside your store is top-notch:

Make sure your staff is friendly
Create a welcoming environment that keeps customers coming back. Train employees to nurture your customer relationships. Don’t assume employees know how to interact with your audience, show them.

Collect and use feedback
Ask your customers to provide feedback and use it to implement changes that can improve their experience. Collect feedback in store and online.

Show gratitude
Make sure your customers know that you appreciate them. Send exclusive deals to your most valued customers, host a customer appreciation event and set up a loyalty program that rewards your customers for their continued support.

3. Consider providing customer support on social

With so many of your customers using social media, using these platforms to offer service and support is quickly catching on. Xbox, a popular gaming system, offers customer support through Twitter. Customers can tweet questions and get live help. It’s so popular Xbox has created multiple accounts to handle the massive crowds.

If you plan to offer support on social channels there are a few tools that can help. ZenDesk, for example, offers software that manages customers’ requests and creates a self-help arena for customers to troubleshoot issues on their own.

Desk.com is another option. It creates a universal inbox where you can help your customers through social sites like Facebook and Twitter all from one dashboard.

Your online service should compliment your service efforts in store.

4. Own up to mistakes

Customers reward companies that are honest and transparent. If you make a mistake, own up to it. Whether you missed a service appointment or have products on backorder, it’s important to communicate with customers about any problems that affect them.

As soon as you’re aware of the problem, reach out. For example, when Adorama fell short on cameras, an email was sent to explain that the item was on backorder. Notice the company apologizes for the wait and offers additional relevant information like how to cancel an order.

Correct A Mistake Quickly

Research shows 95% of complaining customers will forgive a company if a problem is resolved in the next interaction. So, in addition to being honest, you also need to act quickly. Customers expect swift solutions.

How do you build trust with your customers? Feel free to share any additional strategies or tips.

How to Attract, Maintain, and Retain Loyalty Program Members

attract, maintain, and retain loyalty program members

A loyalty program is meant to retain more customers and boost their profitability when they become members. But you still need to optimize your loyalty program just like every other marketing initiative you run. You want to maximize the number of people who join (attract), number of people who participate (maintain), and keep members from leaving (retain).

In this post we will be going over some best practices that will keep your loyalty program running at its best. When you focus on the three pillars (Attract, Maintain, Retain) you are ensuring that your program is top notch!

 

Attract More Loyalty Program Members

We can apply some pretty simple logic here. Give your shoppers what they want from a loyalty program and they will join. Miss the mark, and they will join someone else’s program.

Here are the two biggest drivers for someone to sign up for your loyalty program.

attracting people to your loyalty program

These two criteria are the backbone of almost every loyalty program out there, both in retail and ecommerce. The key take away is that they want to earn “points” for their purchases. They are not looking to earn cash back. Your shoppers prefer the allure of a different currency than what they are used to.

get people to join your loyalty program with an attractive name

Because shoppers prefer a different currency than money, you want to make sure you get their attention with your points. That is why I recommend you don’t call your currency points, you should call them something that matches your brand and what you sell. For example one of our client’s – Denim Industries calls their currency “Denim Dollars”. You can also give your program a name to make it even more enticing. Here is a quick video to help you come up with some creative names.

 

Earning points and giving discounts on purchases can be done with almost every loyalty program software, including a Mass Mobile App. With both of the main reasons to join a program covered it should come as no surprise that getting a customer to join is the easiest pillar to construct.

how many loyalty programs to ppl join

Therefore it should come as no surprise that the average person is joining more and more programs (13.3 on average) but they are actively participating in fewer each year. This is great for attracting members but makes it more difficult to get the benefits of a loyal customer.

 

Maintain Your Member List

Now that you have convinced them to join your program, you now need to convince them to actively participate. The value of a loyalty program comes when shoppers are actively participating and engaging with the program.

According to research by Forrester an active loyalty program member will spend 30% more than a traditional customer and will rate their customer experience as better than non-loyalty members. This is just the beginning of all the benefits you will see when creating loyal customers.

You will not see these benefits when you first attract a member. You need to encourage your customers to earn and more importantly spend points. Your members will begin to become loyal when they experience the pleasant emotions of getting a reward with their points. According to eMarketer there are two main factors that drive program participation. It needs to be easy to understand and offer relevant rewards.

why people participate in loyalty programs

The easiest way to make a program easy to understand is by having a loyalty program explainer page. This is an area of your store that is dedicated to showing members all the ways they will earn points, and what they can redeem those on.

You can make a detailed explainer page like. Gongshow’s explainer page is an example of what you can do to showcase your program. Below is a quick video lesson on how to create an effective explainer page.

 

The second part of maintaining participation is to offer relevant rewards. As stated above the most desired reward is a discount on your product, but there are some variations you can use. If your customers like to save and get big rewards you can offer a reward schedule that makes it advantages to save points, like the example below.

plum-point-reward-schedule

If your shoppers have very short attention spans you may want to make it extremely easy to get the first reward. You can make it so that if they sign up for your program they will immediately get enough points for their first reward. With some programs you can also introduce more exclusive experiential rewards.

Be sure to study your customers to discover what will be the most motivating for them. If you want them to participate they have to be motivated to do so. I would recommend conducting a simple survey to see exactly what your customers are looking for.

 

Retain Your Loyalty Members

When I tell clients that they need to focus on retaining customers in their retention tool, I usually get a funny stare. This is because most people think that you can start a loyalty program, set it, and then forget it. If you take this approach your program will get old fast. When your program seems dated your customers will stop using it.

The two biggest reasons I see people leave or stop using a program is because they are not monitoring the program effectively, or they are making it way to hard to earn/spend points.

reasons for leaving a loyalty program

I know that every time you send out an email campaign you meticulously check your open and click rates. When you run an Adwords campaign you are checking performance daily, and I know you spend a good chunk of time in Google Analytics. So why would you start a loyalty program and then ignore it?

Not paying attention to your programs results is a surefire way to start losing members. If you don’t care then why should they? You should be checking on your program and customers monthly to see what is working and what you can add to retain them.

check your program monthly if not weekly

The second big factor in why your program members leave is because you are making it way to complicated for them. This is usually because you are trying to limit costs which usually limits a program success. You want to put your customers interest in mind before your own.

While only giving points for orders above $50 dollars on your house brand items during the holiday season looks good financially, it is too hard for members to understand. If you want to retain customers you need to make it easy for them to earn and spend points. If they find it to be a chore they will just leave.

 

How to Maintain An Online Loyalty Program

This post has shown you the three pillars of a successful online loyalty program. It is impossible to build a successful loyalty program if you are missing or lacking in any of these areas. You must first attract shoppers to join your loyalty program. They cannot possibly see value if they never join.

Next you must maintain their interest in your program. You need to make your program easy to understand and provide relevant rewards for your customers. Lastly, you need to retain members. Your program is not providing value if more people are leaving your program than are actively using it.

This is meant to act as a framework to cover the basics of loyalty program strategy. If you are looking to truly become a loyalty expert you can check out our resource center. It is full of video lessons, ebooks, and case studies to make you a retention expert. You can also subscribe to the Mass Mobile Apps blog for weekly loyalty articles!

Alex authorship image
About the author:  Alex McEachern

Welcome Points Are Vital To Your Loyalty Program

So, you decided to start a loyalty program. Now what? After launch most new programs get caught up in the details. What I mean by this is that they try to do everything at once. They add every feature under the sun, research the sh*t out of what their points should be worth, and just get way too caught in the weeds. Instead you should start simple, and just get started!

The best way to first get started with a loyalty program is to set up basic earning (like 1 point for every dollar spent) and spending rules ($10 off for 1,000 points). This will set a good foundation for your program, and cover the most basic feature… rewarding purchases. Rewarding purchases is the backbone of every program, but there is one other key feature you should include.

If you want your program to succeed right from the get go, you need welcome points! Welcome points are my number one recommendation for almost every store. It allows you to create excitement, create commitment, and accelerate positive feelings. Let me explain further.

 

Why Your Loyalty Program Needs Welcome Points

Welcome points are an effective way to boost enrollment and participation at the same time. It is the first low hanging fruit you should aim to pick. It is easy add, and super effective!

Here are a few reasons you should be giving your members “welcome points” or otherwise know as rewarding for account creation.

1. Provides an Incentive

The most obvious advantage of giving welcome points is to create an incentive to join your program. There is a reason credit card companies offer you all those bonus miles, it is effective! I know you have at least considered one of those offers.

Credit cards usually offer welcome points

You can create that strong desire to join your program as well, with welcome points. Just be sure that you are making it worth their while. If your first reward costs 1,000 points, a welcome bonus of 50 points will not cut it. I usually recommend giving enough points to claim your lowest reward right away (more on that later).

welcome points focus on customer lifetime value

The tactic here is that you give customers value now, and recover that investment over the course of their life. This is known as customer lifetime value. By getting the customer enrolled and engaged in your loyalty program you will turn them into a repeat customer, which are up to 5x more profitable than first time shoppers!

2. Establishes Value

Welcome points not only incent a customer to join, they also increase the likelihood they will stick around. Have you ever noticed that when you start playing a new freemium game they always give you a starting balance of their currency, or that when you get a “buy 10 get one free” card it already has a stamp on it.

Mcdonalds-McCafe-Rewards-Free-Hot-Beverage

This is by design! People love to start things, but that doesn’t mean they will actually use it. That is why you are usually given a starting balance, it invests you into the game, tool, or program. When you already have currency in something you are more inclined to continue using it, I mean you are already on your way.

Welcome points use the same principle. A customer now has some of your currency in their account. If they choose not to come back they are forgoing that currency. As humans it is very difficult for us to walk away from money.

3. Makes Future Actions More Likely

When we are given something we are not only more likely to continue, but actively look to repay it. This is known as the reciprocity principle, which basically states that when something is done for us we feel obligated to repay the favour. It is almost fool proof!

 

This principle is more effective in loyalty if you just give welcome points to a customer without requiring them to sign up for it. You do not want the customer to feel as though they have traded their info for the points. You want them to feel like you have given them something that they should reciprocate. You can get them to reciprocate in profitable ways.

The obvious way they can repay you is with their loyalty, after all a repeat customer is worth way more to your business. There’s another way though. You can ask them to perform other actions to get points (once they have points and see value). You can get them to do things like share on social or refer their friends for points. This essentially turns your loyal customers into marketers as well!

Rewarding points for other profitable actions is easy to add to your program with ecommerce loyalty programs like the custom Apps created by Mass Mobile Apps.

4. Accelerates First Reward

“A member sees value in your program when they spend points, not when they earn them.”

welcome points provide positive attachment

What I mean here is that your loyalty program members like the rewards they get with their points not the points themselves. No one likes saving for retirement, but you like the lifestyle when you get there. The same is true with loyalty programs. That is why you want your members to claim a rewards as early as possible, and welcome points can help.

When you give welcome points, you are putting a loyalty member that much closer to that first reward. I usually recommend giving enough points for a small reward as a welcome reward. This ensures that the customer sees value and gets the emotional high of a reward right away. This makes them more likely to return on their own, but they also registered an email that you can market to them later with.

Welcome points is the best way to establish positive emotions in your customers and establishes a foundation on which you can build a meaningful relationship.

 

Welcome Points Are An Easy Win

I hope this post has illustrated just how effective welcome points can be! They not only are a fantastic motivator to encourage sign ups, they also get your members to actively participate. They are also easy to include in every Mass Mobile App developed.

About the author: Alex McEachern