October 31, 2018

How to Launch a Loyalty Program

Loyalty programs can help encourage customers to visit and return to your business. Here are some guidelines for creating a loyalty program. You can structure a loyalty program however you like, but they all boil down to the same concept: for each set amount of business the customer gives you, you give them something in return. 

A few guidelines to consider when creating your loyalty program:

• Complex rules for earning points may discourage customers from signing up.
• Customers should earn a reward in a timely manner.
• Offer a reward that people want, and an easy path to getting rewarded.
• Consider offering customers the flexibility to choose the type of reward such as a discount or a free item.

There are multiple providers and options available to help you get up and running with a loyalty program

• POS enabled: Check to see if your POS provider has a built-in loyalty program. For example, if your POS can prompt customers to provide their e-mail address, you can automatically credit customers with points tied to their e-mails. Authorize.Net allows for customizable settings and SKU Cataloging to assist with this.
• Card-linked programs: Usually offered by payment networks, banks and third parties, these programs allow customers to seamlessly enroll and automatically receive discounts and rewards if their registered card is used to make a purchase at your business. Customer Information Manager can store customer information sceurely so the customer doesn't have to input their information for every purchase.
  
• Plug and play solution: There are various customer loyalty solutions online. When evaluating these, think about what offers and rewards matter most to your customers and pick the provider that suits your business best.
• Customized: It’s also possible to work with a loyalty provider to create a custom program for your customers. Full service loyalty providers can help you analyze, track, and examine your customer’s engagement with the loyalty program.  

Excerpt from Digital Transformation of SMB's: The Future of Commerce presented by Visa