Loyalty is a valuable quality when applying for a job. Loyalty programs: how stores fuel customer interest

Looking at fans of Apple or Pepsi products, many businessmen dream of similar love from their customers. One of the important steps towards building such relationships is the creation of a well-thought-out loyalty program that will help earn the trust of the target audience.

Jeff Smith, director of marketing at CrowdTwist, recommends:

“To achieve consumer loyalty, brands need to deliver personalized messages through channels that engage them. Create an emotional connection between the customer and the product.”

Here are five strategies to help create an addictive loyalty program.

1. Create layered systems

This encourages consumers to change their habits, encouraging them to fight for the ultimate prize - the opportunity to be part of a select group.

Research in the US market showed that 50% of those surveyed increased their spending or started buying another product to achieve a higher status in one or another bonus program.

Creating levels makes people compete with each other. Alex McEachern, Loyalty Specialist, explains:

“Clients are eager to move to the next level in your program because they want the extra benefits and status that comes with them. It is human nature, we always want to know what place we occupy in society.

Here is an example from the experience of Best Buy. Clients can be on one of three levels. An easy-to-understand table shows what benefits can be obtained from each of them and how to get there.

Lindsay Kolovich, content marketer at Hubspot, has this advice for business owners:

“Offer people small bonuses for joining a loyalty program. And then encourage loyal customers to complete conditions that allow them to move to the next level in order to receive more serious rewards.

Tempt your customers with more and more bonuses. This can be a powerful argument in the future when they choose who to contact.

2. Connect social interaction

Humans are social creatures who like to communicate with each other. Capitalize on human instincts using social media.

For example, Starbucks representatives on social media are asking customers for their opinion on how they can improve the level of service in coffee shops. The MyStarbucksIdea program lets you vote on other people's ideas so contributors can see if their proposal is in demand.

Avoid situations where customers receive their bonuses and keep silent about it. Make it easy to share your joy with others!

3. Reward for more than just purchases

Research shows that American companies spend about $2 billion a year to increase customer loyalty, and the average family participates in 14 programs but is active in only six of them.

Creating and maintaining loyalty programs requires money and time. In addition, you will have to compete for the attention of buyers with several other brands. Differentiate and you won't have competitors. Most companies are limited to accruing points when paying for goods.

A new trend is to offer bonuses not only for purchases, but also for other useful actions.

Bulu Box awards monthly bonus points to customers who write product reviews and testimonials. Thanks to the participation of these people, the company understands what can be improved, and can convey information about its products to more potential buyers.

The Walgreens' Balance Rewards program is centered around the brand's mission ("improving the quality of life"). The company rewards points for those who choose healthy habits such as jogging in the morning, monitoring blood pressure or quitting smoking.

“The philosophy behind the loyalty program is simple: reward repeat customers and sales will grow. This is a transparent and powerful strategy.”

argue Jed Williams and John Swanziger.

Customers need an incentive to buy exactly your product. Give it to them, but don't limit yourself to shopping bonuses.

4. Create unique bonuses

Now more than ever, consumers want recognition and prefer rewards based on tastes and preferences. In exchange for their loyalty, they seek access to exclusive products and experiences. Some of the best bonuses are designed by small business owners.

The FoBoGro store in Washington, D.C., for example, allows loyal customers to pick up as many items as they can within 30 seconds.

And Panera Bread surprises its loyal visitors. They never know what bonus they will receive until the moment it is awarded. The restaurant chain's website states: “Show your card every time you visit our establishments. As soon as we understand what you love, we will definitely surprise you with a surprise.

Coming up with a unique reward is not as difficult as it seems. Julie Cottinier, founder and CEO of BrandTwist, recommends following three key principles:

• Encourage customers to share with others the history of their interaction with your brand.

• Offer them the opportunity deeper, wider or earlier access to their products.

• Think of a unique experience that grabs their attention.

Personal attitude will make customers loyal to your brand.

5. Be mobile

A few years ago, customers carried their bonus cards in wallets and handbags. This worked, but there were a number of restrictions (for example, it was easy to forget the card at home or lose it). Most people now have smartphones. Keep up with the times!

Integrate your loyalty program with mobile devices.

Segment consumers by interests, location, and habits. So you can establish communication with them and get additional profit.

Remind me about your bonus program. Offer additional discounts.
Don't ignore modern technology. They will allow you to be on the same wavelength with the buyer.

Loyalty for life

• Customer loyalty cannot be bought need to earn.

• Build multi-level systems for consumer involvement.

• Offer bonus points not only for shopping.

• Create unique ways to rewards that surprise your clients.

• Make your customers addictive!

You probably know that acquiring a new customer costs 5-10 times more than retaining an existing one. And that's not all: the average bill for regular customers, according to statistics, is 67% higher than for new ones.

In modern commerce, retention and repeat sales are the main driver of growth. Most companies integrate loyalty programs to achieve these goals, but many of them do not think about what is really important for customers.

According to Colloquy Customer Loyalty Census, 13 out of 30 loyalty programs stop working within a year of launch. Companies are losing time and money, and customers do not see the value in the offer to "accumulate points and exchange them for a hat."

To prevent your program from becoming a member of the Looser-13 list, you should first familiarize yourself with the existing customer retention models on the market

Cumulative loyalty program

This is the most common model with a very simple mechanics - regular customers accumulate points for their subsequent exchange for material benefits (discount, free product, special offer, etc.)

Despite the apparent simplicity of this method, many companies manage to complicate the program so much that they themselves begin to get confused in it.

“14 points can be exchanged for $1, and twenty dollars accumulated is a 50% discount from the next purchase in April” is not a loyalty program, but a headache.

When implementing a funded system, remember that it should be simple and straightforward. This model can be integrated into almost any B2C business, but it is best used where there is a high frequency of purchases.

Boloco "s. Loyalty program "Boloco Card".

The American restaurant chain Boloco is known not only for its burritos, but also for its effective loyalty program. According to its rules, members receive 1 item for free for every $50 spent. It can be an extra-large burrito or a small smoothie. Boloco speaks to its customers in a language they understand, measuring points in dollars and dollars in goods.

Tiered Loyalty Program

Finding a balance between the value of the prize and its achievability is the main task of the company when designing a loyalty program. Achieving this goal can be facilitated by the introduction of a tiered model of customer retention and encouragement.

By rewarding small prizes as the client moves up the loyalty ladder to more significant rewards, you keep his attention and maintain interest in participating in the program.

The main advantage of a tiered model over a cumulative one is that the client derives both short-term and long-term benefits from it. The accumulative system is not so interesting for customers, because. the interval between purchase and achievement of the goal is usually too long, so often customers simply forget about the program.

This system is widespread in businesses with high commitment, such as airlines, hospitality and insurance companies.

Virgin Atlantic. Flying Club loyalty program.

Virgin Atlantics offers its passengers a fairly common among airlines tiered loyalty program, which involves the accumulation of miles. Passengers are segmented by clubs: "Red", "Silver", "Gold". Members of the Krasny club can exchange their accumulated miles for car rental, parking and hotel payments. "Silver" - get 50% more points on flights and have priority access on check-in. Gold points double miles and provide access to VIP lounges.

Paid loyalty program

The goal of a loyalty program is to strengthen the relationship between business and customer. Think about it, wouldn't it be better for you, instead of offering a small benefit for free, to give customers more value, but at a cost?

Apple. Loyalty program "Not in this life, buddy"

Even the most loyal buyers of Apple products do not receive discounts and prizes. A brand focuses primarily on a product and service that fully meets the requirements of their target audience. Therefore, the Apple loyalty program can be called natural.

Finally

Many companies become hostages of their loyalty programs, even when it ceases to bring results - they are afraid to cancel it. Marketers should take a look at the intricate reward and motivation systems and understand what is of real value to customers.

By reviewing these examples, you can begin the process of designing a program that will help you meet your business goals and be of interest to your customers.

“Chief editor of the GetGoodRank blog, web analyst, blogger.
Who is a loyal customer and what distinguishes an ordinary customer from a loyal one? We consider the stages of formation of loyalty and the reasons why customers go to competitors»

Optimizers work tirelessly to improve the quality of the interface and user experience, take into account user behavior on the site and data provided by search engines. But users are not converted:

users enter, watch, read, mentally thank you and leave the site. Some are forever.

Today we tell you how to turn a one-time visitor into a loyal customer.

In this release:

• Who is a loyal customer
• Why users prefer competitors
• How to turn a stray visitor into a regular customer?

Who is a loyal customer

Let's understand the concepts. Who is a loyal customer and how is he different from the rest.

There are no clear criteria for measuring customer loyalty. Marketers give the following definition:

Loyal customer- A customer who has made more purchases than the average customer. Such a consumer makes purchases more often, uses additional services. The influence of competitors on loyal customers is much lower. Loyal users become recommenders of your brand in their circles. These clients are often referred to as brand advocates.

hallmark- Loyal users are able to sacrifice something in order to receive goods and services of consistently high quality from a trusted supplier: buy at a higher price, endure supply interruptions, etc.

• Loyal customers spend more than others (higher)
• Brand advocates resurrect the reputation of a business by fending off negative single reviews. We have already talked about and what to do with them.
• They become traffic sources - loyal users recommend the company to family and friends. The effect of word of mouth is created.
• They become litmus tests - they more willingly agree to try a new service, product, give an honest response.

5 steps to becoming a loyal customer:

First visit

Only chooses a supplier of goods, has no intention to buy here and now, determines whether the supplier is reliable, whether the site can be trusted, checks the convenience of the service (payment, delivery, cost of additional services), studies the assortment. According to the same criteria, GetGoodRank assessors evaluate sites.

Conversion Rate: low. The user can respond to special offers, promotions, discounts on the first purchase.

One-time client

Made a single purchase on the site. Rarely responds to letters and messages, does not update contact information. Reluctant to make contact.

Probability of repurchase: low.

Returning client

The buyer who came for a repeat purchase.

Purchase Probability: 27% higher than when you first met the site. The buyer is already familiar with the seller, tried the service, was convinced of the quality of goods and services, the reliability of the service.

Returning customer

A buyer with an established need for goods and services and who has chosen your site as a trusted service provider. But still considering competitors.

Purchase Probability: 45% higher than at the initial visit.

Loyal customer

The buyer, in whose actions a trend is visible - a certain regularity of calls.

Purchase Probability: 54% higher than when visiting the site for the first time.

Why users choose competitors

Businesses know hundreds of reasons why users prefer competitors. We list the most important factors:

• free shipping affects 49% of online shoppers
• the possibility of a return affects 35% of buyers
• 33% of users will choose a site that has real customer reviews
• 24% of users pay attention to ease of ordering
• 80% of buyers will go to competitors because of the high price
• 54% of users consider delivery speed
• 45% of users prefer stores with pickup points in their city

I'll talk about personal preferences:

• I need a product here and now- the goods available - more important factor, than the price. I'm more willing to overpay than wait.

• warranty and return- I will unconditionally give preference to the seller who gives a simple and understandable guarantee: it is possible to return the goods within 14 days, replacement if there is a marriage. It is important that the warranty works here and now, and not 45 days after the examination and identification of the cause of the defect or breakdown.

• customer support and after-sales service- the attitude of the company to the client determines my loyalty. If a brand promotes a client in every possible way, it strengthens my attachment and loyalty.

• user reviews affect me much less, than expected. I learned to rely on my own experience and my own opinion. I read more product reviews than seller reviews.

How to turn a stray visitor into a regular customer?

First visit - client

For a new visitor, it is important to make sure that the store and the site are reliable. For this you need:

• place information about the company in clickable availability
• contacts (address and phone number) in a prominent place on the site
• live online consultant, instantly ready to help you deal with the site

For a guest to become a customer, you must:

• place the basket in a prominent place on the site- this will immediately let the user understand that this is an online store and he can buy goods here and now - about 17% of online stores do not show signs of "shopping". You can understand that this is an online store only by studying the sections and functionality of the site.

In the practice of GetGoodRank, pseudo online stores also came across - you can only submit an application on the site, but you can buy goods only offline.

• STA buttons- calls to action to try, order, buy, get at a discount work.

• shipping information available on the way to purchase(on the product page or in the shopping cart). The user does not need to visit additional sections to understand the terms of payment and delivery of goods. Information must be accurate and up to date. It should not be like this: “Oh, but we ALREADY do not deliver to this region”

• order without registration- an important option that increases trust and the likelihood of an order if the user entered the site from a mobile phone, where it is not very convenient to fill out the registration form and confirm the data.

One-time customer - returning customer

To increase the likelihood of a customer returning, you need to get contacts, open preferred channels of influence. For this you need:

• receive an email address for news and advertising mailings, as well as for trigger emails (a trigger email is an email sent automatically after a certain customer action on the site that has not been completed: a product has been viewed, added to comparison, but not added to the cart, or added to the cart, but not paid for).

For example:

• motivate the user to register and provide you with more data - this way you will better understand who your customer is, what to expect from him (frequency of purchases, price category of goods). Users are more willing to leave personal data to enter a loyalty program or in exchange for a discount.

• add a discount or special offer to the order for the next purchase- remember that, to motivate the client, and reasonable, so as not to deprive you of profits.

Returning customer - returning customer (aka regular)

The main problem of online business How to turn a returning customer into a repeat customer. In the last newsletter, we talked about the fact that it is unprofitable for business and uninteresting for the buyer to provide permanent discounts. So, in order for the client to return with pleasure, it is necessary:

• - simple, honest, interesting
• rewarding users for constancy - discounts for the volume of purchases for the period
• high-quality customer support is exactly what can distinguish you from your direct competitors
• user information support - blog help your site

Become not an ordinary seller for the user, but a partner in solving problems and problems. When selling a product, provide the client with an information resource where he can find tips and instructions for use, initial setup, and self-troubleshooting.

Provide quality customer support, with sufficient knowledge to help the customer remotely. In fact, most of the recommendations come down to "contact an authorized service center in your city." This is sad.

Loyal customers are loyal customers

Regular customer does not mean loyal. Perhaps the product that suits the client is available only at your place, but the client does not like the quality of service, he is not ready to recommend you, and a change in pricing policy or a better offer from competitors will quickly tempt him.

In the face of a loyal customer, you get a marketer who advertises your product more effectively than the best videos and banners. In order for a client to switch from a regular to a loyalty mode, it is necessary:

• personalization- these are special offers based on preferences, views, previous purchases of the client
• incentives for activity social media and website

Instead of conclusions:

The above recommendations may seem too general, but we see sites that come in for review. These are high-quality sites, with a well-thought-out interaction algorithm, cool design and humane text, but there are no conversions. There are one-time purchases. We spend hours looking at the web browser, watching how users study the pages and leave.

GetGoodRank checks all the factors of a site that affect user trust and loyalty: from the registration and purchase process to the response of customer support and quality of service. We help identify and fix the problems that prevent visitors from turning into regular users and then into loyal customers.

Today's consumers are members of an average of 13.4 loyalty programs. At the same time, only 24% of them admitted that they are completely satisfied with the bonus products that they use.

Dmitry Kholomtsev, Executive Director of KUPIVIP e-commerce services, explains why it is important for a business to create a convenient and understandable loyalty program and how to successfully implement it.

A convenient loyalty program can increase the share of repeat purchases

Retention of customers is one of the most important tasks of modern business, whether it is retail, connection of services or any other business. Today, technology allows you to attract new customers so effectively that, in fact, letting them try your service or product is not such a difficult task.

But how to interest a client to return, how to keep those who are not the first time making purchases from you - questions of the next order of complexity.

According to statistics, repeat orders from loyal customers account for more than 60% of the total business turnover of any major retailer.

A user-friendly and user-friendly loyalty program is one of the key ways to increase repeat purchases and reduce churn, naturally, along with good service and high quality products.

Natalya Zhuchkova

Director of Media and CRM "M.Video"

Of course, the loyalty program should be convenient for customers and mobile - no one is ready to carry packs of cards with them, especially if purchases are not made every day, for example, as in the household appliances segment. A few years ago, we switched to "digital" customer identification.

It is enough to indicate the phone number at the checkout to receive bonus points upon purchase, and it is convenient to track the balance and pay with bonuses for new products in your personal account on the site. We offered customers access to all information on the bonus card and from a smartphone - using a mobile application.

Three Classic Types of Loyalty Programs

• Cumulative

A program based on the accumulation of points that can be used to pay for subsequent purchases. This is one of the most common types of incentive programs, the key to success of which is ease of understanding and use.

The accumulative loyalty program is widely used in the service sector, especially in the tourism sector: as a member of a hotel or booking service loyalty program, you will earn points for every trip, every ruble spent.

The second common area of ​​application is retail of any format: today the so-called cash-back reward systems are used by every second store.

Example. Major North American retailer Nordstrom has launched an accumulative loyalty program along with its debit cards, doubling the accumulation of bonuses when paying at the brand's stores.

According to Nordstrom representatives, more than 40% of their consumers already use the bonus debit card. The goal of the retailer is to increase this number of loyal customers.

A similar loyalty program was launched by KUPIVIP last September: for each redeemed order, the client receives 3% cashback, which can be used to pay up to 100% of the cost of the next purchases within 90 days. More than 20% of customers already use bonus rubles regularly, and this share is growing every month.

• multi-tiered

The more the buyer uses the product, the more points and benefits - this is how the principle of this program can be described in one sentence. Often such programs are used in the service sector.

The versatility of multi-tiered loyalty programs is that they can combine different mechanics: increasing the number of purchases, stimulating communication with the brand online, promoting a certain category of goods or services, gamification.

Example. A good example of a multi-tiered loyalty program launched in Russia is the updated Vkusomania from Azbuka Vkusa. In addition to the classic accumulation of points for each purchase, the club program offers personalized discounts based on the user's previous purchases, the opportunity to purchase tickets for master classes, holidays and tastings, as well as the opportunity to donate your bonuses.

A multi-tiered loyalty program is difficult to implement in terms of calculating efficiency. It requires a close study of its client audience, its segmentation and identification of preferences.

But such a bonus system allows you to reach the widest audience.

A mix of the first two types is possible - this approach is used by M.Video. Customers receive points for every purchase, and they can spend them both on equipment and on services, for example, on "gold" in World of Tanks and other game content.

Thus, program participants save an average of about 20% on purchases. According to the retailer, the program already has about 20 million people, over the past year the number of regular customers has grown by 15%, which indicates the popularity of the proposed mechanics.

• coalition

The most common type of loyalty program for: today, almost every bank can offer a number of co-branded cards. In addition, an affiliate program can bring together several partners from different areas.

A coalition loyalty program for retail is of particular interest if your brand is striving for cross-channel (promotion of online and offline channels). After all, a partner in an online loyalty program can be, for example, a brand’s own offline store.

Example. Children's clothing retailer Carter's launched a cross-brand loyalty program in the fourth quarter of 2015. Rewarding Moments customers earn one point for every dollar spent at any US Carter's, Oshkosh B'gosh, or online stores.

For every 75 points, the customer receives a $10 credit, which they can then spend at any of the brand's stores. According to the company representatives, the loyalty program allowed to increase the volume of online sales by 20%.

A Russian example of an omnichannel loyalty program is the Karen Millen brand offer. The bonus system was launched in offline stores of the network a long time ago, and in 2015 the brand decided to implement an integrated approach.

Discounts are now accumulated for online and offline purchases, while discounts within the loyalty program are also taken into account cross-channel.

It should be noted that the bonus program for online purchases is automatically registered: each user who registers on the site automatically becomes a member of the loyalty program, which greatly simplifies understanding and working with the program for users.

How to Implement a Successful Loyalty Program

• Formulate an offer

It's simple: answer the question, what benefits will a customer participating in your loyalty program receive. At the same time, try to analyze whether you want to work with all your customers or highlight the most profitable segments by offering them an exclusive bonus system.

The second approach, although seemingly limiting, works for many brands, especially in retail, because often 20% of customers provide 70% of income.

• Define Infrastructure Requirements

This component defines the inputs for the implementation of the program: what tools do you need, what resources will be required? At this stage, it may be worthwhile to involve experienced contractors who will help calculate the economics of your project, because often the brand does not have enough own resources to implement a complete cross-channel solution.

Infrastructure in different cases may include:

1. Main sales channels: website, mobile application, retail stores
2. Service departments and issues: call center, delivery, information using POS materials
3. Back-end: loyalty database, implementation of the program mechanism, analytics and efficiency
4. Additional items to consider: social media management tools, interaction with online marketing

• Determine the best way to use your loyalty program

Try to make the most of any client analytics that is available to you.

The market is rapidly developing, today's consumers are accustomed to the highest level of service and a completely personalized approach. The more interesting "chips" you can offer for your audience, the better.

At the same time, don't over complicate things. Gamification, quests, questions and answers, and constant communication with clients on social networks will suit you if your audience is at least in the age category that understands the meaning of these words.

Eldorado's experience

Natalia Balashova, head of the Eldorado loyalty program group

Our loyalty program has a simple and understandable system for customers to accumulate and write off bonuses from each purchase, increased bonuses for the goods of our clubs and the possibility of receiving closed offers for promotional goods. More than 85% of buyers use a bonus card when making purchases: a mobile phone is enough to spend or accumulate their bonuses.

The main objective of loyalty programs for electronics retailers is to stimulate the frequency of customer purchases, because on average customers return to our stores twice a year. In our experience, any promotions with bonus mechanics perfectly cope with this task.

Unlike household appliances and electronics stores, fashion industry stores prefer loyalty program discount schemes. The higher margin of this business allows you to offer customers a direct discount or discount depending on the status of the customer.

Fashion retail, especially in the premium part of the segment, has absolutely amazing image programs to stimulate customer loyalty. The brand, having learned what is really important to their customers, offers them a value that is not expressed in financial terms.

An example of such a story can be the Worn Ware on Patagonia program, when the client is offered not bonuses or discounts, but the repair of their favorite clothes so that they stay with them forever.

About trends in the online retail discount system

Konstantin Gorshenev, AKIT Onedaysale project manager

The consumer today is increasingly looking at prices and wants to buy goods here and now. By bringing together a huge number of promotional offers, we were able to identify certain trends that have a significant impact on online retail and consumer behavior.

The main one is the system of discounts in online retail in general.

It continues to gain popularity and, of course, will develop further.

More and more cashback services, joint shopping services, aggregated loyalty cards of several online stores, and others appear on the network.

These savings trends are gaining popularity online, because by receiving additional bonuses and discounts in addition to the convenience of home delivery, the consumer remains in a double benefit.

Online stores today more often choose marketing tools - digital and interactive promotions, rather than advertising.

Large companies, bringing a product to the market, create special sites, increasing interest in it. Conventional contextual advertising is gradually being replaced by new interesting formats that are becoming extremely convenient and familiar to the consumer.