Making a success of your loyalty programme

Choosing a loyalty scheme is half the job. These five decisions determine whether it succeeds.

Done right, a loyalty programme contributes a healthy share of revenue to your bottom line. But a few decisions before launch determine whether it succeeds. Here are five to get right.

5 things to pay attention to when creating your loyalty programme

1. Go digital

We are on our phones a lot of the time. 75% of customers engage more with a loyalty programme they can access from their phone (Forbes, 2020), so meet them where they are.

Going digital also gives the business valuable data to communicate better with customers, which supports a higher retention rate.

2. Set the reward threshold

Customers stay engaged when a reward feels achievable within a reasonable timeframe. Two numbers decide the right number of stamps or points: your average customer visit frequency and the average amount they spend. Together they show what reward level works for your business.

3. Choose the right type of rewards

A successful programme creates incentives with enough perceived value to bring customers back, while staying financially viable for the business.

Questions to work through:

• Which rewards would your customers value most?

• Would they prefer a free meal or drink, or a cash discount?

• Are your rewards relevant to your business?

• Have you asked your customers? A survey or poll gives you the answer.

4. Customise it to your brand

Make the programme unique to your business and recognisable to customers, using your brand colours and logo.

Be creative with the name too. Dunkin' Donuts runs DD Perks and BrewDog runs Equity Punks. A name creates a community feeling: being part of something special raises engagement among members, and those who have not joined yet feel they are missing out.

5. Encourage sign-ups

Placing stamp cards next to the till and hoping customers take them probably will not do the trick. Encourage sign-ups actively:

• Contact your customers via email and SMS

• Promote special sign-up offers and deals

• Promote the programme on social media regularly, including pinned posts

• Add a pop-up or banner on your website

• Turn loyal customers into advocates: "refer a friend and get 10% off", or extra points for referrals

atis restaurants did this well when introducing their loyalty card. The intro email went to their whole database with a QR code, so customers could download their digital stamp card straight from the email.

The work does not stop at sign-up

A programme succeeds on regular communication. Build and nurture the relationship with email and SMS reminders that keep stamps and points moving ("one more stamp to go"). Add treats on birthdays, early access to new menus, and event bookings to keep members interacting.

Not sure which loyalty programme is right for your business? Stampede covers digital stamp cards, points and tiers. See loyalty, or book a demo to talk it through.