Tips to Boost Engagement and Lessen Dormancy in Your Loyalty Program
February 10, 2023
Building a loyalty program that your customers like only at the initial stage is not enough to get real success.
Your customers may enroll fast in the beginning if you are making use of the right promotion and marketing techniques, but the success will only come after the customers stay engaged with your loyalty program as members.
So, the question is- what can we do to make the loyalty program less boring and increase engagement to make your program members stick to your brand till the end?
What about using a reliable Loyalty Program Offers Management Platform that can help your customers hooked with attractive rewards and deals?
Let’s check out the best tips you can keep in mind to launch a loyalty program with sure-shot customer engagement campaigns.
What are the Effective Ways to Increase Loyalty Program Engagement?
As we are now aware of the importance of loyalty program engagement, we must keep the focus on engaging the most loyal customers rather than keep the focus on acquiring the new ones, which is 7X costlier.
Endless engagement in your program will help to boost the relationship between your brand & customers, which helps to convert repeat customers into brand advocates.
Here are some of the best tips that you can consider for increasing engagement among your program members and making them stay for a long time-
- Reconsider your Current Program KPIs
Ensure that your KPIs & business targets match the reward activities that are valuable for your business whether it’s referrals, reviews & user-generated content.
One of the most important KPIs that businesses like to track is the reward redemption rate. A higher rate shows a good balance of earning & redemption among program members, which also shows that your program is working perfectly and is loved by your target audience.
When you build a loyalty program, keep in mind to focus on KPIs that support your current business goals.
Also Read: How Does Loyalty Program for Hospitals Work and Build Your Trust?
- Do Something Unique
Gone are the days when coupons & discounts attract customers! Today their expectations are high, which means brands must launch a loyalty program that is different from basic ones with a focus on more emotional loyalty campaigns that offer experiential rewards.
Offer rewards with an emotional touch to make sure that they reconnect again and come to your brand for their next purchase.
Connect with your frequent customers through their wants, interests, passions, etc. to create a lasting bond.
- Boost Engagement with Gamification
Another feature that can increase the engagement rate in your program is to introduce mini-games for rewards like a prize wheel or spin-a-wheel where every spin will cost points.
You can add a single low-probability reward with a higher value like exclusive experiences, mega coupons, etc.
Program members are more likely to take part in the games with the thrill of spinning the wheel and keeping them engaged.
You can add a progress bar to make game challenges more engaging and members can play the games & get their names featured on a leaderboard.
- Add Delight & Surprise Elements in Program
Customers love rewards that they receive unexpectedly from the business they are associated with. Yes!
Doing so will not help in making customers’ day happy but also has a chance to turn them into lifelong brand advocates.
Make sure that your brand adds delight or surprise elements to your loyalty program strategy and helps nurture the relationship with program members for higher purchase frequency and better customer engagement.
This encourages customers to repeat valuable actions with the motive to unlock more benefits.
- Reduce Dormancy by Encouraging Point Spend
Many customers may have reward points in their accounts but not take advantage of them due to some reasons.
This is the case of dormancy, which means there is something that is lacking with the loyalty program. Make sure that you offer rewards with a little upgrade keeping a healthy balance of short-term and long-term rewards.
Send reminders with an update on their available point balances using targeted communications. Let your customers redeem points on expensive experiences like luxury vacations, hotel stays, etc.
Make rewards more attainable by introducing points-plus-cash options providing access to big-value rewards.
Small Business Loyalty Program
- Focus on Inactive Customers
Focus on waking up your customers from a deep rest by sharing relevant emails and SMS with relevant data.
For instance, you can add attractive subject lines in emails such as “You have reward points worth $10 in your account”, or a surprising subject line like, “It’s time to wave goodbye (or not)” or get a little cheeky with your messaging like “I guess it’s over…”, etc.
Ensure that you send an email with personalized content that reflects the shopper’s personality and profile.
Apart from relevant messages, you can offer product recommendations with exclusive discounts to encourage order spending, which eventually helps in bringing up previous purchases in a natural manner.
Also Read: 5 Ways to Ensure Your Food Delivery Service Deliver Better Customers Delight
- Use Referral Rewards to Boost Retention Rate
More than 80% of shoppers indeed trust recommendations from friends & family over online reviews.
Brands must ensure that they make use of reliable Referral Loyalty Marketing Software to reward customers who recommend their products/services.
This will not only increase the customer acquisition rate but also encourage higher purchases. Using referral loyalty programs can boost engagement, customer lifetime value, and retention rate.
Also, it is noted that customers taking advantage of referral rewards are more likely to stay connected with the brand and are more open to communications, leading to the chance of repeat purchases.
Final Takeaways
The significance of loyal customers in every business cannot be denied as they act as the lifeblood of growth.
Keeping your most valuable customers engaged is one of the crucial steps to gaining the profits you wish from them.
Making use of the right Loyalty Management Software can help members not only sign up but also take advantage of the potential of loyalty programs increasing engagement to a huge extent.
If you are looking for a way to create a loyalty program that can drive engagement with higher customer loyalty, you can connect with our loyalty experts & see how we can add value to your business using next-gen loyalty programs.