The business world is highly competitive, there are many competitors out there beckoning your clients to patronize them with the promise of some better offer. Hence, there is no room for complacency. You need to have a good customer retention plan, or you risk losing out to fierce rivals.
Loyalty programs are an effective way to keep your customers. It makes your clients feel valued and special, and they understand that they may not receive the same treatment elsewhere. This article discusses how to effectively use loyalty programs to keep your clients.
Generally, there are four basic types of loyalty programs. Let’s see how you can do things differently using any of them.
How to use loyalty programs.
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Tiered-based loyalty programs - This loyalty program categorizes customers based on their purchases and engagements. Customers are persuaded to increase their purchases to advance to new levels. Each level has some rewards, it could be exclusive services, VIP services, free products, or some cash rewards. This program helps you to track and focus on high-value clients and you can easily customize their customer experience.
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Point-based loyalty programs - Clients are encouraged to gain points to earn certain rewards. Points can be accumulated by buying certain products, asking clients to refer their friends to patronize your business, sharing your business links on social media (with proof), or giving positive reviews. This loyalty program helps to reduce price discounts on goods. However, do not make the points seem too difficult to attain as they may discourage your clients. Rather, make it seem like a very fair advantage for them. Create a page to explain the points and how to attain them, so your clients would understand what to do, if it is vague they may not be interested in it. Click here to know the pros and cons of this type of loyalty program.
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Subscription-based loyalty programs - In subscription-based loyalty programs, clients are required to pay upfront for certain rewards that are redeemable instantly. This program works because humans love instant gratification. Such rewards include a discount price for yearly or quarterly subscriptions, exclusive services, discount coupons, or special offers. This program reduces the incidence of debts from clients. Brands usually offer free services first for a few days, this helps build trust and increases the likelihood that your clients would pay for these services. Find out how to create effective subscription-based loyalty programs. https://www.forbes.com/sites/forbesagencycouncil/2020/07/01/seven-ways-to-make-your-subscription-loyalty-program-irresistible/ Here's a guide on the best e-commerce marketing strategies. https://smartsmssolutions.com/blog/122-sms-marketing/sales-and-marketing/1759-the-best-marketing-strategies-for-an-ecommerce-business
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Value-based loyalty programs - This loyalty program differs from others because it does not offer any discount on products or services. Customers earn rewards, but these rewards are donated to charitable or welfare organizations. Make a thorough research on the recipients, and ensure they have a verifiable record of utilizing funds for the intended purpose. This program works because making donations to charities gives clients a sense of accomplishment and satisfaction.
It is very important to brand loyalty programs before launching them, this would help build visibility and awareness. It is also important that you have a unique selling proposition. See how you can achieve that. https://smartsmssolutions.com/blog/120-sms-marketing/personal-development/1763-how-to-write-a-great,-unique,-and-selling-value-proposition As you execute any of these loyalty programs, always try to understand the needs of your clients and address them accordingly.
Partner with SmartSMSSolutions for your communication needs. Use our bulk SMS services to keep in touch with your customers and let them know and constantly remind them of available loyalty programs. Visit our webpage to create a free account with us today.