The following contribution is from another author.
Loyalty programs reward customers for their continuous patronage. The more they spend, the more their loyalty points grow. For businesses, these loyalty programs are more than just a way of thanking their target market for their invaluable support. Instead, it’s also a way to establish the business customer database, encourage repeat buyers, and generate high-quality leads.
Back then, only big businesses with seemingly unlimited resource pools subscribe to these kinds of programs. Later on, the small and mid-size businesses realized the possibility of generating more than 20% profit from this program alone. Hence, they also designed their loyalty programs. With almost all kinds of businesses developing their own loyalty programs, you can say that loyalty programs have come a long way.
Businesses don’t just need these programs, they need them to work so that they can reap their benefits. Here are the six tell-tale signs to know that your b2b reward program is working.
1. Adaptable to changing times
One of the signs that your loyalty program is effective is the fact that it can adapt to the changing market and customer preferences. Back in the day, customers were used to experiencing loyalty programs that eventually ask them to burn money to earn points. This type of program is no longer applicable in modern times.
Now, loyalty programs are not only effective but are also straightforward. These programs can keep up with the changes and also satisfy customers. Essentially, they give customers what they want at the time they wanted it.
2. Duality of incentives
The old incentive programs only focused on the financial rewards the customers could earn after they accumulate several purchases. No, brands focused on engagement and financial rewards at the same time.
Now, brands incentivize customers to go out of their way and talk about the brand online. When the post or comment is made, the brand recognizes their efforts and incentivizes them. If your brand is practicing this loyalty program, you’re on the right track.
3. Emotional rewards
Modern-day customers purchase based on the value a certain brand can offer them. In the same vein, these brands acknowledge the fact that their customers are interested in emotional incentives and experience instead of pure financial rewards. An excellent loyalty program should therefore reflect such values as simplicity in living and success beyond monetary gain.
Brands continue to work hard to stay relevant. And they know they can only remain relevant if they ride with the needs and wants of their customers. Since not all customers appreciate financial rewards, it’s time to invest in emotional incentives. If your brand has been doing this, you’re on the right side of the road.
4. Value-oriented
Modern-day buyers purchase because their values align with the values of the company. Your loyalty programs should likewise reflect these changes. Again, most customers put a higher premium on brand and emotional value than money. You will remain relevant to your target market if you stick to this fact.
5. Established loyalty mechanics
This is the backbone of every loyalty program as it defines how the program should run. Set up tiers in your loyalty program since it incentives people for certain behaviour that favours your business. For every tier, allow them to unlock rewards and benefits. This is like conditioning them to aim for something bigger and better.
6. Consider data science
Back your loyalty program with data to make it work. The data gathered can provide you with actionable insights into the patterns, preferences, and behaviours of your target market. Since no two customers are the same, you need to have studies to back up your programs. This can also help you come up with rewards that will surely make sense to the recipients.
If you have all these items in your loyalty program, you will not only have a lucrative business, but also a happy customer that won’t mind making repeated purchases.
