1. Clearly Define the Target Market
This is something I’m sure you’ve heard a hundred times in the business world, and that’s why it’s the first point on my list. In marketing, or even in business in general, defining your target market is a key objective that will shape your entire business. There’s a reason why they added ‘people’ as the 5th “P” of marketing and that’s because it greatly affects the other 4 P’s. When creating a loyalty program, it is crucial to define and understand the target market, because it will guide the benefits of the program as well as the strategies you use to market it. The more you know about your target market, the better you’ll be able to customize a loyalty program that will best suit your customer’s needs.
2. Consider the Main Objective
Another important thing to think about when creating a loyalty program is what the main purpose of the program is. Do you want to sell more of a certain product? Or do you want to get more people to sign up for your service? Figuring out the main objective of your loyalty program will help guide your path to building something that will ultimately help both you and your customer. If your loyalty program has more than one objective you can tailor certain benefits to guide consumers into taking specific actions.
3. Create a Budget
For just about anything you do in marketing or business that will cost money, you should create a budget. A budget not only tells you whether or not your project will lead to you making a profit, but it also breaks down each part of the project and places a monetary value on it. If you end up being over budget, or aren’t making a large enough profit margin, you can review your budget and see what pieces you can afford to go without. When creating a budget for a loyalty program you should consider breaking it down into three parts; a marketing budget, a product budget, and an overall budget. This will allow you to separate your marketing costs from the costs of the products and services customers will receive from being part of your loyalty program.
4. Integrate Brand Message
Just like all other parts of your business, a loyalty program is another great place to show your customers your brand message. The products or services in your loyalty program are just one way to show brand message. Your marketing strategy for your program is another way you can integrate your message to customers. For example, if you’re a bike shop owner and you want to be known for having an amazing bike servicing department, you might want to consider giving away a free tune as part of your loyalty member benefits. You could then create a Facebook sponsored ad campaign encouraging new customers to sign up for your loyalty program where they will be entered into a raffle to win a free bike tune.
5. Mix It Up
As marketers, or business owners, one of the best things we get to do is be as creative as we possibly can. This shouldn’t stop when you’re thinking about creating a loyalty program for your business. Mix up the benefits by giving away both products and services to your members. While you’re at it, what about creating different member levels that allow for different perks depending on a customers’ ‘amount’ of loyalty? Anything can be done and everything should be considered when you start thinking about how you want to make your loyalty program.