The Commoditization of Loyalty Programs

Make Sure Your Loyalty Program Stands out from the Sea of loyalty programs now available to consumers.
Make Sure Your Loyalty Program Stands Out!

Has your business added a loyalty program? If so, you are not alone. All types of businesses have added what is arguably the most cost effective form of marketing available for the smaller business. The problem now is, how do you differentiate yourself from your competition if everyone has a loyalty program?

Today, loyalty programs must be reimagined. Stop thinking that the purpose of your loyalty program is to make your customers loyal to you and start thinking of it the other way. A loyalty program is really all about making sure your customers know that your business is loyal to THEM. It’s a mindset change, but if you think about your loyalty program through this prism, you will see greater success.

All Loyalty Programs Are Not Created Equal

Many POS systems offer an add-on loyalty program. These programs are inexpensive and rely on the business owner to manage the loyalty program. These are typically transactionally-based, meaning they reward a customer once they are in the store and make a purchase that reaches that business’ spending milestone. Look for programs that engage customers when they are NOT in the store. THIS is how you keep your brand top-of-mind. Look for programs that allow redemptions right from their phone or through a kiosk. Look for a program that offers custom branded mobile coupons and offers methods for data collection because it is in the data that you find the gold.

According to retailtouchpoints.com, a majority of transactionally-based loyalty programs fail within the first two years.

Loyalty and the Power of Mobile

Consistent engagement using text marketing makes the difference between a successful loyalty program or one that fails.
It’s Not Just Rewarding Customers Based on Spend. It’s All About Consistent Engagement.

When you create a loyalty program that is based on the mobile platform, you will have the ability to not only reward those customers for their purchases, but because you have built a database of their mobile numbers and have obtained the required permission, you can now further engage with them, when they are NOT in your store, offering them reasons to come back in. The key to a successful loyalty program is to reward engagement, not just purchases.

Make Gratitude Your Attitude and your customers will reward you by participating in your loyalty program.

Make Gratitude Your Attitude

When you shift the way you think about your loyalty program and make it all about thanking your customers for their loyalty, you will start to treat those who have joined your mobile database differently than the rest of your customers. By treating this group as a special group, they will reward YOU in spades. When customers realize that they will be offered special discounts or special access not available to anyone else, they will line up to join your program. And once you have their number in your database, you can begin to nurture that relationship by making sure they realize how much you value their business.

57% Are Willing To Share Data With You To Get Personalized Offers and Discounts

Loyalty + Relevance will ensure success. Gather data and use it to personalize your offers. Text-based communication is naturally conversational, so get your customer’s first names so you can personalize your messages. Ask them what type of info they’d like to be kept in the loop on and then send them just what they have asked for. Do this and you will see minimal opt-outs.

Mobile High 5 works with small and medium sized businesses and regional chains to help them leverage a powerful loyalty + SMS text marketing to keep customers engaged and to keep brands top-of-mind. It’s not just our technology that makes us different; it’s the expertise behind the curtain and our ridiculously fast customer service.

Can I Buy A List of Mobile Numbers and Start Texting Them?

Not If You Want To Run Your Program In A Legally Compliant Manner.

Text message marketing falls under the same regulatory body as Robo calls. Customers have to give advance and explicit permission in order for you to send text messages to them. Additionally, each message must contain information on how to opt out of a campaign after they have opted in.

In short, the customer is in charge here, so it is important that your text marketing campaigns offer something of value with each communication. Something of value doesn’t mean a discount with each message…it means information that is of value to your customers. If you are a restaurant, it could be information about your catering menu, or the fact that you have a really cool band playing Saturday night. If you are a retail store, it could be information about an upcoming trunk show, or a fundraiser where a portion of your sales goes to a nonprofit. If you are a spa, it could be last minute openings you have that you’re willing to discount to fill. If you are a car wash, it could be a rainy day offer on detailing – who thinks of a car wash when it’s raining? Remind them you are still open and welcome them.

When You Begin Your Campaign, Focus ALL Your Attention On Getting People To Opt In: Create a Tribe

Everyone wants to be a part of something special. Create your own tribe.

American Express coined the term “Membership Has Its Privileges” ages ago and it stands as one of the iconic marketing campaigns even to this day. It convinced millions to think that by carrying the American Express card they were somehow elevated over those who simply carried a Mastercard of VISA.

In the same way, create your own tribe, your own VIP club and regularly engage with this group. Make them feel special to you, because they are. They represent your best customers. Reward them with special information and offers and they’ll reward you by spending more money and visiting you more often.