How to launch a customer loyalty program that boosts your bottom line
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The document discusses reasons for businesses to implement customer loyalty programs and tips for launching a loyalty program. It notes that there are over 3 billion loyalty program memberships in the US, with more than 71% of households earning $100,000 or more enrolled in a program. Successful loyalty programs are focused on customer engagement and retention rather than just transaction-based rewards, and increasing customer retention rates by 5% can increase profits by 95%. The document provides examples of different types of loyalty programs and gives 11 tips for launching a simple, easy-to-use program focused on customer needs rather than corporate goals.
How to launch a customer loyalty program that boosts your bottom line
- 1. Customer Loyalty Programs BOOSTING YOUR BOTTOM LINE WITH
- 2. FOLLOW ME ON TWITTER @DARRENDEMATAS BY DARREN DEMATAS Darren DeMatas has 10+ years of professional marketing experience working with large corporations and small businesses. In addition to having an MBA in Internet Marketing, Darren is a Copyblogger Certified Content Marketer and Google AdWords Certified.
- 3. Reasons Why Customer Loyalty Programs Matter7
- 4. There are 3.3 BILLION loyalty program memberships in the US, an average of 29 per household. (Colloquy) 1
- 5. 2 More than 71% of those making $100,000 OR MORE a year are enrolled in a loyalty program. (Software Advice)
- 6. 85% of retailers are in search of ways to add value outside of discounts. (Colloquy)
- 7. It is 6-7 TIMES more expensive to acquire a new customer than it is to keep a current one. (White House Office of Consumer Affairs)
- 8. 75% U.S. companies with loyalty programs generate a return on investment. (Experian)
- 9. 83% of members agree that programs make them more likely to continue doing business with certain companies (Bond)
- 10. Increasing customer retention rates by 5% increases profits by up to 95%. (Harvard Business Review)
- 11. Big Reasons Why Customer Loyalty Programs FAIL4
- 12. 97% of loyalty programs are based on spending money to earn money (transactional rewards) (Cap Gemini)
- 13. 77% of transaction-based programs fail in the first two years. (Cap Gemini)
- 14. Overall, ONLY 25% of companies reward any form of engagement. (Cap Gemini)
- 15. 56% of people don’t join a loyalty program because of privacy. (Bond Brand Loyalty)
- 16. CHECK OUT THE POST ENJOYING THIS PRESENTATION? Learn How To Launch A Customer Loyalty Program
- 17. Types of Customer Loyalty Programs 5THAT WORK
- 18. POINTS PROGRAMS REWARD CUSTOMERS WITH REDEEMABLE POINTS FOR MONETARY OR NON-MONETARY ENGAGEMENT.
- 21. SPEND PROGRAMS REWARD CUSTOMERS WITH STORE CREDIT BASED ON DOLLAR AMOUNT SPENT.
- 22. EARN POINTS FOR TRANSACTIONS ONLY
- 23. EARN POINTS FOR TRANSACTIONS ONLY
- 24. TIERED PROGRAMS INCENTIVIZE CUSTOMERS WITH STATUS BASED REWARD LEVELS BRONZE SILVER GOLD Free Products Birthday Gifts Birthday Gifts Free Shipping Free Shipping Free Shipping2X Points 3X Points Exclusive Items
- 26. #VIBROUGE TWITTER SEARCH = ENGAGEMENT & EXCITEMENT
- 28. PAID PROGRAMS CHARGE AN UPFRONT FEE FOR VIP BENEFITS
- 30. PUNCH PROGRAMS CUSTOMERS MOVE TOWARDS A GOAL WHEN PURCHASING CERTAIN ITEMS
- 31. BUY 5, GET 1 FREE
- 32. CHECK OUT THE POST ENJOYING THIS PRESENTATION? Learn How To Launch A Customer Loyalty Program
- 33. Tips For Launching A Loyalty Program11
- 34. SIMPLE start 1
- 35. start with your EXISTING EMAIL LIST 2
- 36. JOIN make it simple to 3
- 37. LIKE THIS
- 38. NOT LIKE THIS
- 39. EARNING make rules simple EARN 1 POINTSPEND $100 4
- 40. 100 POINTS IS WORTH $1 SPENDING make rules simple 5
- 43. END GOAL have your 8 in mind IMPROVE CUSTOMER ACQUISITION? DECREASE CUSTOMER CHURN? INCREASE ORDER SIZE?
- 44. EMAIL AUTOMATION use 9Automated Emails Get 119%HIGHER CLICK RATES Than Broadcast Emails (Epsilon)
- 45. make it about your customer 10 not about money
- 46. 11
- 47. LEARN ECOMMERCE ENJOYED THIS PRESENTATION? Learn How To Launch and Grow An eCommerce Business