How to implement effective customer loyalty programmes

How to keep customers satisfied?

Implement effective customer loyalty programmes.

Customer Loyalty

Retaining customers in the long term is an equally important and strategic goal in retail.

We all know this situation: customers are asked for a loyalty card when paying at the supermarket checkout. When this is presented, the retailer rewards the purchase with loyalty points, which gives the shopper an advantage – usually financial. This is only one of many ways to offer customers personalised added value within the framework of a customer loyalty programme and thus effectively bind them to the retail company. One thing is certain: if this is successful, it not only increases customer satisfaction and long-term loyalty. Ideally, they even become brand ambassadors and pass on their positive experience to their acquaintances.

Keeping the reward principle in mind

Retailers are therefore strongly advised to develop and build up a corresponding programme to promote customer loyalty. Nevertheless, competition is fierce and all providers are vying for the customer's favour. Therefore, some key points should be considered in order to increase the chances of success of the measures. In the first step, retailers should be clear about which customer group they want to address and thus what kind of customer loyalty programme they want to implement.

The focus is always on the reward principle: for example, purchases above a certain value can unlock discounts for future purchases or merchandise vouchers. Omnichannel retailers also have the opportunity to encourage further online customer interactions, such as writing product reviews. Rewards and benefits can also be tailored to the merchant, such as coupons for the market restaurant or free delivery for online orders.

Continuously bind customers to the brand

Loyalty Program

Create suitable incentives

Once the customer is part of the loyalty programme, it is important to keep them loyal to the brand, which is where gamification approaches can help to create the right incentives. Whether the customer competes with friends, enters prize draws or collects awards, these measures help to create long-term and close customer loyalty. Initiatives such as customer referrals can help build an organically growing customer base.

Guidance

4 tips for effective customer loyalty programmes

Customer Journey

Customer Journey

Align loyalty processes with the customer journey and set clear incentives.
Omnichannel Experience

Omnichannel Experience

Realise the programme against the background of an omnichannel experience and therefore pay attention to the online and offline worlds.
Customer-Loyalty-Management

Customer-Loyalty-Management

Get professional, external support and keep the complexity of customer loyalty management under control.
Performance

Performance

Pay attention to performance and ensure that processes at the POS and in the online shop are not impaired.
Customer Journey

Customer Journey

Align loyalty processes with the customer journey and set clear incentives.
Omnichannel Experience

Omnichannel Experience

Realise the programme against the background of an omnichannel experience and therefore pay attention to the online and offline worlds.
Customer-Loyalty-Management

Customer-Loyalty-Management

Get professional, external support and keep the complexity of customer loyalty management under control.
Performance

Performance

Pay attention to performance and ensure that processes at the POS and in the online shop are not impaired.

It should be noted that if the programme is processed directly at the checkout, fast processing must be guaranteed – both organisationally and in terms of the performance of the IT infrastructure. If gifts such as household items or drinks are to be given to customers, they must be available in sufficient quantities in the shop.

Consider the customer journey and offer a consistent omnichannel experience

Omnichannel Experience

Delivering an end-to-end omnichannel experience

Operational processes on site and the IT systems must be seamlessly integrated with each other. Ideally, offline and online measures go hand in hand to offer customers a continuous omnichannel experience. 

However, since the processes in the two channels are very different, they must be perfectly coordinated. It is also important to effectively avoid gaps in the IT processes. Technical processes must be designed so robustly that they can react within seconds to known errors, for example if the customer's credit card does not work. Part of the loyalty strategy must also be the rules that are configured in the platform. Can the customer redeem points before the return deadline, are certain product categories excluded or does the customer also collect points for services?

Omnichannel Experience

Seamlessly combine IT and business processes

In order to manage and simplify processes efficiently, it is advisable for retail companies to seek professional advice. KPS supports, for example, in designing, implementing and integrating an effective customer loyalty programme.

The individual measures are optimally coordinated and embedded in marketing, CRM, e-commerce and POS processes. In most cases, a dedicated loyalty platform is recommended that administers the various processes and defines both rules and framework conditions for the loyalty programme. Furthermore, with an appropriate calculation engine, the awarding of loyalty points can be managed efficiently and with high performance across all systems and channels, whether directly at the checkout in the retail shop or in the online shop. Retailers can thus seamlessly combine the processes in IT and business and thus decisively reduce complexity.

Conclusion

Customers come and go – whether in the stationary shop or in the web shop. A well thought-out customer loyalty programme ensures that they come back and stay, appreciate the products and services and, in the best case, share their positive experiences with others. This is how occasional buyers become satisfied and loyal customers in the long term. Provided you succeed in ensuring harmony between IT and business processes to guarantee a smooth flow of the customer journey.

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