Complete Guide on How to Plan Your Loyalty Program Concept
Keeping customers stick to a brand is what every business keeps as their major goal. The right mix of marketing strategies and a loyalty program that best defines your business is a killer strategy to grow and flourish. For every business to succeed it’s imperative to plan and spend a generous amount of time researching for the best possible strategy.
Now, what could be the next step? No, this won’t look like rushing to get your mobile app developed or choosing a suitable loyalty rewards program. Better make a strong base with smart planning, preset your every step, in this article, we will study the most imperative steps for developing a loyalty program concept. Let’s get started.
Exploring Program Structure
Discussing the concept, the first step is discovering the kind of loyalty program you wish to have. Keeping in consideration the target audience, decide on the type of loyalty program you wish to offer along with the various elements such as gamification, extra rewards, etc. Other imperative factors include the following-
Not all programs are available worldwide or even domestically, there are location barriers which include different factors like languages, list of countries, availability, currencies, etc. All you need to do is define each and everything-
– Define the list of countries wherein your customer loyalty program is available, where will it launch, and a basic graph of regions it will be in.
– Language can be an enormous holdback, it’s better to finalize how many languages you would like to cater to, keep in consideration your target audience and add in all possible details to hire resources for each language customer support and translations.
– There should be a basic currency integrated with the brand name, though in case you’ve chosen more than one geographic location, keep on adding payment options to be done and received in different currencies.
Once the geographics are in place, structure your program. Make sure all necessary features are added, what elements should be integrated, and in case you have multi-currency options then keep a plan ready to differentiate on basis of languages (optional).
– Specify the cores, the basic system of the program, and if it has points, tiers, badges, any challenges on every level, VIP membership options, etc.
– Provide a name for the program, some differentiable names based on languages, features, and add ons.
– Define the basic values like how many points a user gets on transacting/purchasing etc. Alongside what’s the value of each point and if there are levels involves, what’s the criteria to move up the ladder.
Now, this step is somewhat more loyalty rewards program owners skip. Make sure you have a defined channel from where your company operates. Once it’s finalized, do communicate to the users. The current channel should be clear with everyone and a prior intimation on the future plans (if the provider is willing to launch multiple stages), to be specified before the next step. Keep your details arranges and specific for a better implementation.
When everything else seems finalized, it’s time to dive into the details. Decide the kind of features you need to add in. Keep in mind the right concept to implement, though an idea is important to give a kick start, later one can check out the technical limitations or something which can come in the way of implementing the right idea. Keep your efforts dedicated to conceptualizing the right strategy and let everything else follow.
- Point Logic
Your loyalty program structure is complex, though the process looks simple on the outer edge, it’s relatively tough on the inside as various rules, formulas, and planning are involved. Consider the following aspects to stay on the top of the money game-
– We have discussed currency conversions earlier also, but having a defined aspect on how many points per currency should be prior decided to step forward.
– Point earning should function with certain conditions. For instance, what qualifies a member to earn points and the procedure to redeem the same should also be well defined.
– Create a logic on earning and redemption along with the rewards provided as an add-on option.
– Calculate your business costing on allocating each point to the customer.
– Define the cost your business would incur on providing extra rewards to the customers,
– High-tier membership or limited-time holiday campaigns have offers to double to triple the points, these kinds of offers impact the process. Be sure you have the right amount of capital invested and the return are properly planned.
Not every business likes to add in tiers in their loyalty program but, they can be the right consideration altogether. Firstly, it’s a great choice to spice up the concept, secondly, its adds on to customer trust fostering long relationship with the customers. However, tiers differentiate each step with extra privileges and perks provided to the customers, make sure you have the right planning if willing to go for a tier-based customer loyalty solution.
– Divide your tiers, make levels and make sure you have a different set of parameters involved in each tier.
– Specify if the tiers are based on money spend, membership tenure, or involved a purchase to upgrade.
– Define the points spent or earned while entering into a new tier
– Setting up an expiry date is equally important, set the right parameters and what could be the circumstances if the tiers expire should also be defined in the initial guidelines.
Besides having finalized on logic, rewards do need your calculations on the place. regards include gifts, coupons, cashback, offers, and more. These are jewels for your loyalty program. Here are a few things to keep in consideration while setting up a customer loyalty program software.
– Describe the monetary value of coupons, vouchers, cashback, or the kind of offers you’re willing to give away.
– Indicate the conditions to be fulfilled for the redemption of the reward including minimum order value, period, purchase of a particular product, etc.
– Preset the validity of each reward you’re offering.
– Decide if the reward can be redeemed multiple times or have validity to be used only once.
An outline structure of the customer reward program is so much relief! Having it all planned and rolled up in the form of guidelines is the best way to implement any loyalty software solution. While the main goal behind almost every loyalty program is to boost sales and foster loyalty in the customer. Revise your plans, get them in place, and move forward with the right strategies to level up your business. to get better ideas or a demo of services, check out the most suited loyalty program development company and get started.