How to Choose the Right Loyalty Program That Prioritizes Potential Loyalists?
- Posted on September 7, 2023 by Robert
- Reading time about 6 minutes
Customers’ happiness and satisfaction play a huge role in retaining them for a long time and ensuring success in any business, irrespective of the industry they belong to. However, with tough competition in the market, making use of loyalty program need special strategies to target the right set of customers.
Businesses are becoming aware of the importance of customer loyalty, which is why they give special focus to customers who are most likely to join and engage with the program for a long time. Before you invest in Customer Loyalty Program Software, ensure that you have experts to build the right solution that can identify and attract potential loyalists for long-term growth.
Find Out Who Are Your Potential Loyalists
To make the best use of loyalty programs, brands must know how to recognize customers who are likely to stick with the business. In this section, we will learn everything about potential loyalists, what makes them unique from other customers and why brands must give special attention to them in their loyalty programs.
Your Loyalty Program Providers must ensure that businesses can customize loyalty program efforts to meet the specific needs of potential loyalists and build stronger customer connections with higher brand loyalty. Let’s find out who exactly are your potential loyalists.
Potential Loyalists can be defined as a group of customers who show a keen interest in being a part of your loyalty programs and wish to build enduring bonds with businesses. With a higher level of dedication and devotion, these customers are likely to become loyal fans of businesses. These results can be found based on the analysis of several data points like purchase history, number of visits, interaction with the company, etc.
Importance of Keeping Focus on Potential Loyalists ‘Needs
Potential loyalists are more likely to display transactional behavior and make repeat purchases. Additionally, they are the ones who interact more often with the brand sharing insightful opinions in channels like social media, email marketing, etc. They not only contribute to increasing business profit with higher sales but also spread the word about the brands building better connections and bringing in new customers.
Here are some of the benefits that brands can enjoy by prioritizing potential loyalists-
· Better Customer Retention
As potential loyalists are the ones who feel more connected to the brand, they are more likely to stick with the brand. This means by targeting them, brands can increase customer retention and loyalty for better growth.
· Enhanced CLV
Potential loyalists have more chance of higher customer lifetime value (CLV) unlike other customers and contribute towards the overall profits of the company throughout their engagement. Ensure that you prioritize them to enhance the economic effect of their loyalty programs.
· Word-of-Mouth Marketing
Another benefit of keeping focus on potential loyalists is to boost emotional bonds with the brand as their brand advocacy activities can be a great help to offer good brand experiences and bring in new customers through word-of-mouth marketing, the most trusted source to choose a brand.
Effective Tips To Target Potential Loyalists with Loyalty Programs
There are several methods that brands can use to target potential loyalists like predictive analysis feedback approach or RFM segmentation. RFM refers to recency frequency and monetary value, which is a great strategy to help brands examine customer behavior and focus on pursuing potential loyalists.
In this section, we will learn how an effective loyalty program can help brands target potential loyalists for better business outcomes-
– Focus on Specific Individual’s Interests
To engage potential loyalists of the business you can customize your loyalty programs considering each individual’s interests and expectations. You can do so by providing incentives based on customers’ activities like purchase history, customizing messages, or offering special benefits exclusively for them.
One of the popular examples is the Starbucks loyalty program which uses data analytics to better understand customers’ needs and design recommendations to target potential loyalists.
– Go for Gamification & Experiential Rewards
Another way to use a loyalty program is to entice potential loyalists with the help of interesting games and experiential rewards. Adding these interactive features to your program can help engage customers and build stronger connections with the brand for long-term loyalty.
The popular brand Nike uses effective gamification strategies in its loyalty program to engage potential loyalists and help them become a part of their community.
– Offer Tiered Programs with Exclusive Perks
Your brand can implement a tiered-based loyalty program to offer unique benefits like early access to exclusive products, relevant product recommendations, VIP access to events, and more. This will encourage prospective customers or potential loyalists to stay engaged with the brand for a long time, thereby increasing the retention rate.
For instance, we can consider the example of the famous beauty retailer, Sephora which relies on its loyalty program, Beauty Insider to focus on potential loyalists. These programs help in offering customers at higher tiers increasing benefits or rewards such as exclusive product launches, birthday gifts, and access to beauty coaching classes. To further boost engagement, brands also make use of personalized email and SMS campaigns that attract beauty enthusiasts.
After going through the blog, we know that brands using loyalty programs must give priority to potential loyalists as they have a huge positive impact on the company’s growth. Whether it’s data analysis, segmentation, or predictive analysis, businesses must know how to identify customers who are likely to stick with them. Ensure that you customize the loyalty program based on the requirements of prospective loyalists to gain immense benefits such as customer engagement, happiness, and advocacy.
If you are planning to build a loyalty program that helps your business grow by giving a special focus on loyalty strategists, Novus is an all-in-one Loyalty Management Software that enables brands to build dedicated loyalty solutions for enhanced growth. Connect with our experts today to see how Novus can add value to your business.