Loyalty program for customers: they will never leave you. Loyalty programs with gamification elements. Multi-level system to stimulate repeat purchases

When developing a loyalty program, remember that blindly copying other people’s techniques is unlikely to create a complete product that optimally meets your requirements. This business requires a creative approach; you need to constantly come up with unique offers that can interest and delight customers.

A loyalty program requires strategic planning. They are designed to create long-term relationships with clients, and must change in accordance with the current situation, while certainly remaining attractive to clients.

Loyalty programs have a lot to do with personal human relationships. People attracted by a good program will quickly leave for competitors if the company shows disrespect or inattention. Conversely, long-term relationships, supported by gifts and attention, create a very strong psychological attachment in a person.

Before examining common ideas, we warn you that the performance of each idea must be considered in the context of a specific program. The idea shown here as bad can be quite workable if certain conditions, conversely, implementing “good ideas” without paying attention to aspects of your business can cause financial and reputational damage. The information presented here is given “for thought” and is not a direct guide to action.

Bad ideas

A poorly designed loyalty program is usually a waste of money. Those that do not create their own image, do not have the intention of motivating the buyer to make constant purchases, and are not addressed to a specific group of people usually lose the competition.

Bad idea: let's give out gifts just for fun

Gifts “for nothing,” of course, are pleasant for customers, but they do not motivate them to make purchases. In addition, giving a gift for no reason creates unnecessary suspicion. Imagine that someone gave you some small change in a beautiful box for no reason - a rather strange act, isn’t it? Such a gift creates the feeling of a secret motive, which for the company could be poor sales or a desire to “melt down” an unprofitable product.

The gift must have a specific reason. This could be a public holiday, a client’s or company’s birthday, or a thank you for frequent purchases.

The reason for the gift must be clear to the client, clear and unambiguous. Thus, the reason for a gift for active purchases should contain specific criteria for assessing activity, for example, the total amount of purchases for the month, and the reason for attracting customers should indicate the required number of customers to receive the gift.

Bad idea: let's give out gifts once

Having received a gift once, a person expects it the next time. Having given the client something for his birthday, you need to take care of gifts for his next birthdays. Having provided large discounts for active purchases in the current month, you need to provide them in the following months.

Stopping regular gifts on certain occasions creates a feeling of inattention and loss of value to the company. Having given a gift once, and on the next occasion, “forgetting” about the client, the company gives a bad gift to itself.

Bad idea: we will implement the loyalty program in parts

In the pursuit of economy, companies forget that customer loyalty must be achieved on all fronts of the relationship. Creation good image a company through, for example, advertising is impossible if the company has boorish salespeople or dirty, inaccessible points of sale. A loyalty card should provide specific benefits immediately, rather than come with vague promises of future discounts.

A fly in the ointment spoils a barrel of honey.

Bad idea: let's try to completely change the loyalty program, see how it works, and if something happens, return the old one

Changing a loyalty program is a responsible process, during which you need to make sure that customers will not be disappointed by the severance of certain agreements. Loyalty programs that change like gloves create an impression of unreliability of the company's promises, and can also cause a negative reaction among regular customers in the event of uncompensated cancellation of established privileges.

Bad idea: let's create bureaucratic difficulties in obtaining privileges

Often, in pursuit of profit, companies take a slippery slope: they declare in advertising significant privileges to attract customers, and create various difficulties for clients in obtaining these privileges in order to save budgetary funds.

This unique tactical move can attract visitors and increase sales in the short term, but strategically this path is unprofitable, since it creates a distrustful attitude of buyers towards the company’s advertising and even causes negative emotions from clients.

Loyalty program ideas that work

The most good ideas in loyalty programs, they are usually created for specific conditions. A long-term loyalty program, closely related to the specifics of doing business and offering unique privileges to clients, supports the image of the company as holistic and established, and creates in people the impression of reliability and sincerity of the relationship.

Good idea: privileged position for regular customers, loyalty card

The creation of a club of regular customers for the vast majority of companies is a necessary step in competition. The importance of such a club for successful business development can hardly be overestimated; it provides financial support, creates an image layer in society, and provides feedback with clients. A large club of regular customers loyal to the company is like the foundation of a building.

The global standard for most of these loyalty programs is to provide regular customers with a plastic club card in exchange for receiving personal data. Possession of such a card is attractive to customers and is also convenient for keeping records of purchases by the company.

Customer Feedback

A successful business must adapt to the customer's desires. How better company knows her customers, the more effective her sales policy will be. Customer surveys and analysis of completed purchases have been used in marketing since the beginning of its existence.

New technologies take these tools to a higher level. New generation electronic marketing tools allow for such deep analysis of demand that traditional methods are “blind” in comparison.

Convenient and detailed accounting

Cumulative discounts, bonuses, gifts for active customers and many other techniques require accounting for completed purchases. Traditional methods, such as manual analysis of receipts and vouchers, are inconvenient for the client and the company.

The use of plastic cards significantly reduces accounting costs and is also attractive to the client.

Good idea: web integration

Online customer support today is a de facto standard in many industries, as well as a competitive advantage for the vast majority of companies.

The importance of this support is growing rapidly. Customers want to be able to get information and take action online.

Providing clients with at least some opportunities to interact with the company on the web has a very beneficial effect on the company's image.

The appearance and functionality of your personal account can be adapted to specific conditions. You can also integrate card administration tools into existing projects.

Good idea: rewarding activity

To emphasize the value of active customers to the company, they can be given gifts or provided with additional privileges. It would also be a good idea to get them a more substantial card.

Today's consumers belong to an average of 13.4 loyalty programs. However, only 24% of them admitted that they were completely satisfied with the bonus products they use.

Dmitry Kholomtsev, executive director of KUPIVIP e-commerce services, explains why it is important for businesses 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

Customer retention is one of the most important tasks of modern business, be it retail, connecting services or any other business. Today, technology makes it possible to attract new customers so effectively that actually letting them try your service or product is not such a difficult task.

But how to interest a client to return, how to retain those who are not making purchases from you for the first time - 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 large retailer.

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

Natalia 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. Several years ago, we switched to “digital” customer identification.

It is enough to indicate your phone number at the checkout to receive bonus points when purchasing, and it is convenient to track your balance and pay with bonuses for new products in your personal account on the website. We offered clients access to all information on the bonus card and from their 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, and the key to success is its 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 loyalty program or booking service, you will earn points for every trip, every ruble spent.

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

Example. Large North American retailer Nordstrom has launched a loyalty program with its debit cards, which double the accumulation of bonuses when paying in the brand's stores.

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

KUPIVIP launched a similar loyalty program in September last year: for each purchased order, the client receives 3% cashback, which can be used to pay up to 100% of the cost of subsequent purchases within 90 days. More than 20% of clients 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 you can describe the principle of this program in one sentence. Often such programs are used in the service sector.

The versatility of multi-tier loyalty programs is that they can combine different mechanics: increasing the number of purchases, stimulating communication with a 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 to master classes, holidays and tastings, as well as the opportunity to donate your bonuses.

A multi-tier loyalty program is difficult to implement from the point of view of calculating efficiency. It requires a close study of your client audience, segmenting it and identifying 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 services, for example, on “gold” in World of Tanks and other game content.

Thus, program participants save on average 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 unite several partners from different areas.

A coalition retail loyalty program is of particular interest if your brand is looking to cross-channel (promote 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 store.

For every 75 points, the buyer receives a $10 credit, which can then be spent at any of the brand’s stores. According to company representatives, the loyalty program increased online sales by 20%.

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

The accumulation of discounts now occurs 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 registered automatically: every user registered 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 a proposal

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

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

Determine infrastructure requirements

This component defines the input to the implementation of the program: what tools do you need, what resources will you need? At this stage, it may be worth engaging 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.

To infrastructure in different cases may include:

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

Define best way using your loyalty program

Try to make the most of any customer analytics available to you.

The market is developing rapidly, today's consumers are accustomed to the highest level of service and an absolutely personalized approach. The more “tricks” you can offer that are interesting specifically for your audience, the better.

At the same time, keep it simple. 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.

Experience of the Eldorado company

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 products from our clubs and the opportunity to receive closed offers for promotional products. More than 85% of buyers use a bonus card when making purchases: enough mobile phone to spend or accumulate your bonuses.

The main goal 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 do an excellent job of this task.

Unlike household appliances and electronics stores, fashion industry stores prefer discount schemes of loyalty programs. The higher margins of this business allow it to offer customers a direct discount or a discount depending on the customer's status.

Fashion retail, especially in the premium part of the segment, has absolutely amazing image programs to stimulate customer loyalty. A brand, by learning what is truly important to their customers, offers them value in a way that is not expressed in financial terms.

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

About trends in the online retail discount system

Konstantin Gorshenev, project manager, AKIT Onedaysale

Consumers today increasingly look at prices and want 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 will certainly develop further.

More and more cashback services are appearing online, services joint purchases, aggregated loyalty cards of several online stores and others.

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 double benefit.

Online stores are more often chosen today marketing tools– digital and interactive promotions rather than advertising.

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

“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 loyalty formation and the reasons why customers leave for competitors.”

Optimizers work tirelessly to improve the quality of the interface and user experience, taking into account user behavior on the site and data provided by search engines. But users don't convert:

users come, look, read, mentally say thank you and leave the site. Some forever.

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

In this issue:

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

Who is a loyal customer?

Let's understand the concepts. Who is a loyal customer and how does he differ from others?

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

Loyal client- a customer who has made more purchases than the average customer. Such a consumer makes purchases more often and 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 called brand advocates.

Distinctive feature– loyal users are able to sacrifice something 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 revive a business’s reputation by fending off isolated negative reviews. We have already talked about and what to do with them.
They become sources of traffic - loyal users recommend the company to family and friends. A word of mouth effect is created.
They become litmus tests - they are more willing to try a new service, product, or give an honest response.

5 steps to becoming a loyal customer:

First visit

He only chooses a supplier of goods, has no intention of buying 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. GetGoodRank assessors evaluate websites using the same criteria.

Conversion Probability: low. The user can respond to a special offer, promotions, or a discount on the first purchase.

One-time client

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

Probability of repeat purchase: low.

Returning client

A buyer who came for a repeat purchase.

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

Returning client

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

Probability of purchase: 45% higher than at the initial visit.

Loyal client

A buyer whose actions show a trend - a certain regularity of requests.

Probability of purchase: 54% higher than during the initial acquaintance with the site.

Why users choose competitors

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

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

I'll tell you about my personal preferences:

I need the product here and now- product in stock - 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 clear guarantee: it is possible to return the goods within 14 days, replacement if there is a defect. It is important that the guarantee works here and now, and not 45 days after the examination and identification of the cause of the defect or breakdown.

Availability of customer support and after-sales service- The company’s attitude towards the client determines my loyalty. If a brand contributes to the customer in every possible way, it strengthens my attachment and loyalty.

user reviews affect me much less, than expected. I’m used to relying on my own experience and my own opinion. I read reviews about the product more than about the seller.

How to turn a casual visitor into a regular customer?

First visit - client

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

place information about the company in clickable accessibility
contacts (address and phone number) in a visible place on the site
live online consultant, instantly ready to help you understand the site

For a guest to become a client, it is necessary:

place the shopping cart in a prominent place on the site- this will immediately let the user know that this is an online store and he can buy the product here and now - about 17% of online stores do not show signs of “shop presence”. You can understand that this is an online store only by studying the sections and functionality of the site.

GetGoodRank also came across pseudo online stores - you can only submit an application on the website, but you can only buy the product offline.

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

Delivery information is available along the purchasing path.(on the product page or in the cart). The user does not need to visit additional sections to understand the terms of payment and delivery of goods. Information must be reliable and up-to-date. There shouldn’t be something like this: “Oh, we don’t deliver to this region ANYMORE”

order without registration- an important option that increases confidence and the likelihood of ordering if the user has entered the site from a mobile phone, where filling out the registration form and confirming data is not very convenient.

One-time customer - returning customer

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

get email address for news and advertising mailings, as well as for trigger letters (a trigger letter is an email message sent automatically after a certain customer action on the site that was not completed: the product was 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 client is, what to expect from him (frequency of purchases, price category of goods). Users are more willing to leave personal information to enter a loyalty program or in exchange for a discount.

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

Returning customer - a returning customer (aka repeat customer)

The main problem of online business- how to turn a returning customer into a constantly returning one. In our last newsletter, we talked about how providing permanent discounts is unprofitable for businesses and uninteresting for buyers. So, in order for the client to return with pleasure, you need:

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

Become for the user not an ordinary seller, 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 troubleshooting problems on his own.

Provide quality customer support, with sufficient knowledge to assist the customer remotely. In fact, most recommendations boil down to “contact an authorized service center in your city.” This is sad.

Regular customers - loyal customers

A regular customer does not mean loyal. Perhaps a product that suits the client is available only from you, 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 more advantageous offer from competitors will quickly tempt him.

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

personalization- these are special offers based on the client’s preferences, views, and previous purchases
incentives for activity V in social networks and on the website

Instead of conclusions:

The recommendations given may seem too general, but we see sites that are submitted for review. These are well-made 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 staring at the web viewer, watching as users explore pages and leave.

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

You will learn:

The essence of a loyalty program using the example of a dialogue with a buyer.
Popular types of customer loyalty programs.
Development and implementation of a loyalty program in stages.
What to pay attention to when creating the conditions for a loyalty program.
6 ways to evaluate the effectiveness of a company's loyalty program.
Examples of unusual loyalty programs from around the world.

Marketers know well that it is much more profitable to retain an existing client than to attract a new one. The difference in costs for these actions can be up to 10 times! In addition, statistics confirm that a regular customer spends 67% more than a new customer. Therefore, all efforts should be aimed specifically at retaining customers and stimulating repeat sales. To this end, the overwhelming number of companies are introducing loyalty programs into their activities, but few people know what is really important to consumers.

Expert opinion

The essence of a loyalty program using the example of a dialogue with a buyer

Egor Chemyakin,

Both managers and marketing department employees are constantly thinking about how exactly to prevent their client from becoming a buyer of another company. The most common solution that comes to their mind is the use of discounts. Moreover, according to many, their regularity and significant size is the only way to retain a client. At the same time, the losses that accompany an incompletely thought-out discount policy are often not taken into account. As a result, such a system can hardly be considered effective and, most importantly, beneficial for the company.

As an example, let’s look at a model of interaction between a seller and a buyer, when the client expects to receive a discount and makes it clear that otherwise he will turn to another supplier of goods or services.

Bad option:

What discount will I receive?
- There are no discounts on this product.
- In that case, I will place an order from your competitors!
- Okay, I can arrange a 5% discount for you personally, but that’s between us.

A good option:

Can I count on a discount?
- Of course, if the purchase amount exceeds 10 thousand rubles, your discount will be 5%.
- Great, these conditions suit me.

The best option:

Will there be a discount?
- Yes, sure. Moreover, your personal discount will grow along with the number of your purchases. If you purchase goods worth 10 thousand rubles, you will receive a 5% discount, and if the purchase amount exceeds 20 thousand rubles, the discount will be 10%.
- That is, if the price of this coat is 22 thousand rubles, I will pay 19,800?
- Yes, that's right.

These dialogues fully reflect the essence of the customer loyalty program, which is widely used by small businesses throughout Russia. If you want to be radically different from your competitors, it's time to think about how to do it.

The loyalty program includes a whole range of activities, each of which is aimed at retaining existing customers and creating long-term mutually beneficial relationships between customers and the company.

The goal that the seller seeks to achieve using loyalty programs is repeat sales. Such programs are invariably included in the marketing strategy of organizations and are aimed at increasing profits, increasing sales volumes, retaining old and attracting new consumers. The effectiveness of a set of measures is measured using indicators such as:

acquiring new customers;
growth in revenue from repeat sales;
increase in the frequency of purchases (increase in the number of receipts);
expanding the list of goods purchased by one consumer (diversification of purchases);
reducing customer churn;
shift of buyers' interests towards more expensive goods.

So if you haven’t yet thought about implementing a customer loyalty program, now is the time to start using this powerful tool to take your business to a new stage of development.

Restaurant loyalty program: practical recommendations from an practitioner

8 Popular Types of Customer Loyalty Programs

Discount loyalty program

Of course, the most common way to retain and attract customers, not only in Russia, but throughout the world, is to provide discounts. They can be either one-time or cumulative. The client receives a discount card, the presentation of which with each subsequent purchase entitles him to a certain discount - either a fixed amount or increasing over time.

The essence of a cumulative discount is that by crossing a certain threshold set by the company, the consumer has the opportunity to save even more, that is, the size of his discount grows along with his loyalty. Some companies even “punish” customers who visit the store irregularly by lowering the discount percentage and returning it only for the next purchase.

The advantages of such a system:

Everyone loves discounts, especially Russians in the context of a protracted economic crisis and declining purchasing power.
This type of loyalty program is simple in terms of organization and control of its implementation.

Disadvantages of the system:

Every buyer has discount cards from two or three competing companies in his wallet, and the size of the discount he can count on is usually the same. Therefore, it is a stretch to think that this tool really works.
The client is interested in regular purchases only until his discount reaches the maximum value.
Any discount means a decrease in the company’s net profit.

This can be easily verified with a simple example. Imagine that the price of one of your products is 9,000 rubles. The markup you made is 30%. By selling it under the loyalty program with a 5% discount, you lose 450 rubles. At first glance, compared to the sale amount, this is a small part of it. But it's not that simple.

Each product or service has a cost that you cannot change. The discount you give the buyer is deducted from the profit you would have made. Let's say in this example it is 2,700 rubles. After deducting the discount, you will be left with only 2,250 rubles.

Thus, giving the buyer 5% of retail price, you yourself lose 17.5%. As you can see, not so little. It's good if you can afford a markup of 100-200%. What if we increase the discount?

Remember this point, we will return to it a little later. In the meantime, let’s look at what loyalty programs exist for customers, in addition to the discount one.

Bonus loyalty program

There are no discounts in this type of customer retention; they are replaced by bonuses. The fundamental difference is that, having left a certain amount designated by the company at the store’s cash register, the consumer receives a certain number of bonuses, which can either be used as partial payment for the next purchase (for example, up to 20% of the cost), or be exchanged for goods worth the number of bonuses. Different companies use bonuses in the form of points, stickers, rubles or internal currency that circulates within the same retail chain.

The advantages of such a system:

A bonus loyalty program is effective where it is possible to make regular purchases.
A client can become the owner of a decent number of bonuses if he purchases constantly and for impressive amounts.
As a mandatory condition, the company can put forward a requirement for a certain period of validity of bonuses, after which they expire, which will push consumers to an unplanned purchase.
Having received bonuses, not all customers will use them, therefore, the company does not lose anything, and the product is ultimately sold at full price.

Disadvantages of such a system:

When it comes to a very expensive, and therefore rare or one-time purchase, there is no point in introducing a bonus loyalty program. The client is unlikely to return to you again, despite the benefits offered to him.
If the rules for accumulating and using bonuses are too complex, consumers simply will not understand them, and as a result, the loyalty program will not fulfill its intended function.
Bonuses are a more complex option than discounts. To control the correctness of their accrual and use, as well as compliance with expiration dates, a special program will be required.

There are two ways to quickly increase the profit of any company - raise prices for goods or services or replace the discount loyalty system with a bonus one.

Let's return to our example about a 5% discount for a product worth 9,000 rubles. Let's see how it works for bonuses. The client made a purchase for which he was awarded bonus points in the amount of 5% of the cost of the product. He can spend them when he makes the next one.

1st purchase – 9000 rubles.
2nd purchase – 9000 rubles.

Bonus from the first purchase (located on his card) - 5%, or 450 rubles.

Thus, 2700 (your net profit on the first sale) + 2700 (second sale) - 450 (written off bonuses on the first purchase) = 4950 (your net profit minus the discount).

Thus, with a bonus loyalty program, the discount on profit was 8.5% versus 17.5% in the first case.

Of course, you could argue that the customer gets another 5% on their next purchase, which again adds up to 17.5%. However, practice shows that not everyone will return for the next product, and some will come when the validity period of the accrued bonuses has already expired. And only after completing the next transaction, the buyer will receive bonuses for the next purchase.

It is quite possible that you will have a question: will you lose all your customers by replacing discounts with bonuses? You shouldn't be afraid of this. Probably, some share will refuse your services, but in return you will receive an increase in profits.

So you have nothing to fear. The small number of customers who leave you because of a change in loyalty program would never become your loyal customers. There are always people who are constantly looking for the best deals and therefore do not fall into the group of core consumers for any company.

However, let’s make a reservation that, of course, the choice of a loyalty program must be approached taking into account many different factors. There is no one universal recipe that is suitable for absolutely all types of business.

And one more piece of advice. You shouldn’t ask clients what suits them better – bonuses or discounts. The answer is already clear - a discount. The benefit that can be obtained here and now is always better than that which will be in the distant future. Therefore, choose a loyalty program based on the interests of your company.

Multi-tier loyalty programs

This customer retention system is simple in essence, but quite difficult to implement. It is based on a direct relationship between how much a client spends on paying for goods and services in your company, and the privileges that he receives as a result. These include Additional services type of delivery or longer warranty. By demonstrating loyalty to your company, the consumer provides himself with higher status. This system works effectively in the banking and insurance industries, and is also a favorite airline loyalty program.

Pros of the system:

The driver of this loyalty program is ambition, the desire to occupy a more advantageous position compared to ordinary customers, so a person is willing to spend more and more.
In demand in areas where there are VIP and Double-VIP segment clients.

Disadvantages of such a system:

It only makes sense to implement this program for high-value goods and services.
Bonuses must be very significant.
Since the system requires an individual approach, difficulties may arise during its implementation. Without specially written for these purposes computer program, of course, cannot be avoided.

Paid loyalty program

In this case, the client simply buys the right to receive any bonuses and privileges. Usually this looks like a fixed subscription fee, for which access to additional features, limited resources, and special conditions of service is provided.

The advantages of such a system:

Easy to organize.
Ideal for regularly purchased goods and services.
Customers willingly pay for access to such a loyalty program, but do not always actively use it (that is, the company receives money, but does not give anything in return).
You can calculate the cost of bonuses in order to best serve your interests.

Disadvantages of the system:

If customers perceive the benefit of a paid subscription to be less than the price they have to pay, the model is doomed to fail.

It should be recognized that this is the most effective loyalty program for individuals, because it allows customers to receive tangible benefits compared to customers who do not participate in it. But to bring it to life, you must reach a certain level of development in your segment. As an example, let’s take large retail chains – “Okay” and “Lenta”. The cards they offer their customers to purchase are inexpensive, but the difference in the price of some products for cardholders and those who do not have them can be very significant.

Loyalty programs with non-material rewards

Once you understand what your customers truly value, building a long-term motivation model is easy.

Almost any company can implement a loyalty program based on discounts or prizes, but the one that can offer its consumers privileges that cannot be measured in money will move to the next level of relationship with customers.

The coup was invented by marketers from the Patagonia brand, which offers outdoor clothing. Outdoor gear often needs repairs. This is exactly the service that was offered to customers instead of points and discounts. The concept is called “The Stories We Wear” and connects extreme sports enthusiasts with clothing from this brand on an emotional level.

Affiliate loyalty program

As in the previous case, we are talking about the need to find out the needs of your customers that are not included in those satisfied by your company, but are no less important to them. Your task is to find partners for whom your consumers are also clients.

Loyalty programs based on strategic partnerships can provide the conditions for rapid business development and customer base growth. They serve as an indicator to customers that you understand their needs well and are doing everything you can to help them.

An example of advanced affiliate marketing is American Express. The company cooperates with Macy's, AT&T, Rite Aid, Enterprise Rent-A-Car and Hulu. By participating in the loyalty program, customers receive points that can later be used to pay for the services of a partner company. By renting a car from Enterprise and earning a certain number of bonuses, the buyer can use it to pay for AT&T communications services.

Loyalty programs with gamification elements

Using gaming mechanisms in a loyalty program allows you to interest customers and achieve significant results.

The first thing that comes to mind in this case is holding various competitions. This technique certainly has its place, but the programs must be very carefully designed so that customers take them with the proper level of seriousness and enjoy participating in a show that brings variety to the daily shopping routine.

To achieve this, it is important to offer consumers benefits that are actually in demand and at the same time realistically achievable. The conditions of competitions must be worked out to the smallest detail - this will minimize the interest of prize hunters. The launch of a new gaming program must be preceded by detailed information to all departments, so as not to create a situation where customers know more about the ongoing promotion than store employees.

An example of a company that successfully uses the element of a game as a loyalty program is GrubHub. Since 2011, the food delivery brand has been giving customers the opportunity to win a dessert or drink during their order, with one in four customers having a real chance to do so.

Natural loyalty programs

Since loyalty programs are very widespread today, come up with new trick Retaining customers is no easy task. However, the lack of a system for attracting and retaining customers can also be considered an innovative approach.

It can be afforded by those companies whose product or service is unique. Moreover, the point is not in the high price category or undeniable quality, but rather in the direction of the industry as a whole. In this case, there is no need to reward customers with loyalty programs, because they receive a product that has no equal.

Let's take Apple. Having millions of loyal fans of its products, it does not consider it necessary to give prizes or discounts to anyone. The main priority of this brand is a unique product that best meets customer expectations. This is the kind of loyalty program that is considered natural.

Examples of loyalty programs

"Family Team" (Rosneft)

Anyone who purchases a bonus card can become a participant in the loyalty program for gas stations that are part of the Rosneft concern. Its cost may vary slightly in different regions, but maximum rate– 250 rubles.

Bonuses are credited as follows:

for the purchase of petroleum products - 1 bonus for every 10 rubles;
for the purchase of related products and services - 3 bonuses for every 10 rubles.

Having accumulated a certain number of bonuses, you can exchange them for products with the company’s symbols (T-shirts, baseball caps, bags and similar products). You can also purchase fuel with bonuses.

The biggest prize of this loyalty program is Formula 20 – 20 liters of any fuel. It can be obtained by those clients whose bonus account has accumulated 3999 points. This can be achieved:

When buying fuel: you need to spend 39,990 rubles. As a result, the loyalty program card will return 1.7% of the total value of their purchases to the member.
When purchasing related products and services in the company’s mini-markets: you need to spend 13,330 rubles to receive a bonus 20 liters of fuel. In this case, the refund will be 5.1% of the purchase price.

Thus, by participating in the Rosneft gas station loyalty program, customers have the opportunity to return from 1.7 to 5.1% of the purchase amount in the form of bonuses.

Other examples of loyalty programs see the article in “General Director” magazine.

Development of a loyalty program in stages

Stage 1. Analysis and division into segments of the customer base (for wholesale companies) or target audience(in retail). This stage involves making adjustments to the standard loyalty ladder depending on the specifics of your company’s business processes. It is necessary to check the client database for relevance. Among those consumers with whom there is no interaction for more than two purchase cycles, it is worth distinguishing those who are lost (who switched to competitors) and those who closed.

Stage 2. Distribution of customers by loyalty levels, finding out their needs and expectations from interaction with your company at each level. Identifying consumer concerns at each step of the loyalty ladder.

Stage 3. Monitoring the actions of competitors. What are the offers that customers receive from other companies at each stage of interaction? Definition strengths your organization and competitors. The purpose of this stage is to find out how stable your position in the market is, due to what advantages competitors will be able to lure away your customers, and, conversely, what will allow you to get other people’s customers.

Stage 4. Development of a plan for interaction with each customer segment. At this stage, loyalty programs are created for a specific group of consumers, taking into account the forms of incentives that work in your market and are typical for your type of product or service. To return lost customers identified during the database audit, a separate action plan is being developed. Special forms of incentives are introduced for the most attractive clients.

What to pay attention to when creating the terms of a loyalty program

To launch a loyalty program that will be truly successful, company management must have a good understanding of what customers really need, and what conditions will make them remain loyal to your brand, and not seek benefits from competitors.

What does that require?

Put yourself in your client's shoes. Let's say you run a company that does wholesale trade. What is more important for your client - to accumulate bonuses in order to eventually receive some in return special conditions service or is it more important for him to buy at a discount in order to be able to sell at retail with a greater profit? Put yourself in the shoes of your customers and the answer will come naturally.

Analyze your competitors and act completely differently. For example, competitors apply progressive discounts. This means that, in contrast to them, you should choose a bonus program, and prepare very good prizes that will attract customers.

Take your competitors’ loyalty program as a basis, but make your own improvements to it. However, you should first make sure of its effectiveness by analyzing the state of affairs of your opponents. It is quite possible that it does not bring the desired result, so copying it is pointless.

3 examples of unusual loyalty programs for regular customers

Tip #1: Offer something truly useful.

A loyalty program will only work if you offer customers something they actually need. A useless gift will simply be thrown away and your goal of motivating customers will not be achieved.

As an example, let’s take the “Malina” bonus program. Its participants were encouraged to accumulate points by making purchases at various retail outlets. Subsequently, bonuses could be exchanged for some cheap trinket. Of course, this loyalty program could not be called effective, and it was on the verge of extinction. But after some time, the organizing company managed to understand the needs of customers, and customers had the opportunity to exchange accumulated points for useful goods and services.

Tip #2: Subtly remind people about your loyalty program.

To achieve success in achieving your goal, keep your customers informed by informing them about marketing promotions. Today there is a lot for this convenient ways– from Email to instant messengers such as Telegram, Viber and WhatsApp.

True, marketers disagree on what frequency of sending information messages is considered optimal. Some people think that twice a month is the limit, while others are sure that it is acceptable to send three messages daily.

Following two conditions will help you determine the most acceptable touch frequency:

Subscribers' point of view: how often would they like to receive information?
The frequency with which customers use the product you offer.

If we are talking about beauty salon services or everyday goods, mailings can be quite frequent. When offering non-standard goods or B2B services, you should not be too persistent.

Tip #3: Keep the terms simple and clear.

The key to the success of a loyalty program is its accessibility for all customers to understand. Formulate its terms using no more than 50 words, and ask the driver or security guard working in your company to read them. If he does not understand the essence of the program or interprets it in his own way, your work is no good. This does not mean that complex calculations should not be used in the calculation, but the mechanism of action must be completely transparent and understandable.

Pay close attention to the language you use when describing your loyalty program rules. Some marketers, unwittingly, mislead customers by declaring: “Collect 10 beer caps - get the 11th for free!” A thoughtful consumer will rightly decide that he doesn’t need another cap and will not take part in the loyalty program.

Other attempts to deceive customers, such as using microscopic, unreadable font to indicate important conditions for receiving a prize, will only lead to you losing customers forever by pushing them into the arms of competitors. Believe me, the buyer will forever remember how you did not meet his expectations, which means you missed your only chance. To avoid such problems, make sure that the rules of the loyalty program are extremely simple and do not require additional explanation.

Tip #4: Never deceive clients.

Remember that all the promises you make to your consumers must be kept. If you doubt that you can do this, don’t promise. Thus, the air carrier Aeroflot once launched a loyalty program, under which it issued co-branded cards together with many banks. It was very easy for customers to accumulate points; all they had to do was use their cards and buy plane tickets. That is, in order to gain access to premium flights, you did not have to show any special loyalty.

As a result, so many points were distributed to people that entitled them to free flights that the company had to urgently revise the terms of the program, namely, reduce the number of seats for its participants and increase the amount of points. Aeroflot began to suffer losses, as it became difficult for new customers to purchase tickets, while sales increased the main objective any loyalty program. As a result, those passengers who were entitled to a free flight, but could not take it, felt that they had been deceived, and this negatively affected the company's reputation.

Tip #5. Don't offend regular customers.

A company's attempts to attract new consumers often result in offering them special gifts for participating in the loyalty program. At the same time, those customers who have long been loyal to the brand find themselves out of work.

Imagine that a company whose services you regularly use announces very attractive conditions for newcomers, without in any way encouraging its loyal customers. It is clear that the company is interested in expanding its customer base, but this is not a reason to offend those who bring it regular profit. A better option is the “Refer a Friend” program, which is successfully used by many sellers. At the same time, the number of customers increases, and a bonus is received by a regular customer who has already proven his loyalty to the brand.

The director turned a boring work pass into a loyalty program

6 ways to evaluate the effectiveness of a company's loyalty program

Launch of a pilot program

When starting to implement a loyalty program, no company can be completely confident in its effectiveness. It is quite possible that reality will be very far from plans. A pilot project - testing the system on a small business segment - will help to assess how correctly the main provisions of the program are defined and what its approximate results will be.

This approach is very convenient for retailers with extensive network located in several regions of the country. A pilot launch of a loyalty program for stores is carried out in a single subject of the Russian Federation; in the process, identified deficiencies are corrected, and only after a successful check the system begins to work throughout the network. Although the fact that different regions may have their own nuances cannot be overlooked.

Analysis of program results before and after launch

To have an accurate idea of how effective a loyalty program is, it is necessary to regularly monitor its key indicators, as well as compare them at the start of the program and at the end of its completion. The most important parameters include the size of the average check, the frequency of purchases and the level of outflow. All of them should be observed in dynamics and in parallel comparison with similar indicators of buyers who do not participate in the program.

Cohort analysis

Cohort analysis is used to measure the impact of a loyalty program on various groups its participants, taking into account the duration in time and the specific stage of the life cycle.

In this case, a cohort means a group of clients united by common feature and the period of action. The value of the analysis result directly depends on the degree of homogeneity of group members. So, if you include young people from 20 to 30 years old in the cohort, the results of the study will be too general. It is better to unite young people with the same age range, but with higher education and living in Volgograd.

Cohort analysis allows you to track the dynamics of consumption, namely its growth that occurs after customers begin participating in the loyalty program. Ideally, customers' spending should increase every month, but in reality the result may not be so straightforward and stable. This type of analysis is aimed at identifying patterns of consumer behavior depending on the duration of participation in the program. The results of the study allow us to find points that require adjustments and improvements for different types customers and life cycle stages.

Cohort analysis involves programs that have been in effect for more than one year and have not undergone major changes. For companies that have recently launched new loyalty programs, this type of research will be useless.

Look-alike analysis

An equally effective strategy is to compare program participants with non-participants within the same socio-demographic segment. This type of research is called look-alike analysis.

Many marketers believe that those who sign up for a program are already loyal customers and that by joining the program they are not changing their consumption patterns. Look-alike analysis allows you to verify the truth of this statement and quantify the value of the system. Another positive aspect is the ability to attract new customers to participate in the loyalty program, relying on those mechanisms that have already proven their effectiveness.

Control groups

An effective method for measuring the results achieved during the implementation of individual stages of the loyalty program is working with control groups.

The control group refers to a group of clients selected at random who will not be the object of marketing influence. The main requirement for the composition of its members is representativeness. All consumer segments should be represented in the group in the proportion in which they are included in the customer base.

The control group tests individual marketing techniques and loyalty program mechanisms. It is almost impossible for the program as a whole to create such a group: its members should not have access to information about the current program, and this is absolutely impossible, because its promotion is carried out publicly.

NPS – customer loyalty index

Most reliable way measuring customer loyalty - direct survey. Net Promoter Score (NPS) allows you to estimate with the greatest possible accuracy the likelihood of a given consumer repeating a sale and recommending them to their friends. The NPS method is based on one question, the answer to which can predict the possibility of both a repeat purchase and a recommendation. The question is formulated extremely simply: “On a scale from 0 to 10, what is the likelihood that you would recommend us to a friend or relative?”

Customer responses are classified as follows:

0 - 6 = “Critics.”
7 - 8 = "Neutrals".
9 - 10 = “Promoters”.

The NPS index is calculated by subtracting the percentage of respondents classified as “Critics” from the percentage of respondents classified as “Promoters”: % Promoters - % Critics = NPS.

It makes it possible to evaluate the results of the loyalty program for customers from different angles:

The loyalty of program participants and those who do not participate in it is compared.
The dynamics of changes in the index among program participants over a certain period of time are monitored.
NPS indicators are compared among different segments of loyalty program participants.

The main advantage of the NPS index is its simplicity. However, he is not able to answer the question about the reasons for customer loyalty or lack thereof. A complete picture of the effectiveness of a loyalty program can be obtained if NPS is used in conjunction with other analysis methods.

Loyalty programs are a business driver!

Loyalty programs have taken the world by storm. Companies are launching customer incentive programs en masse. And this makes economic sense. According to Rosetta Consulting research, loyal members make purchases 90% more often and spend 2-3 times more than non-members. There's a reason Amazon invests billions of dollars in loyalty programs. In a world where the customer rules the roost, a high level of customer focus is an essential element of a sales strategy. Regular customers are the main source of income for the company. In the early 2000s, researchers obtained a phenomenal result - an increase in customer loyalty by 5% leads to an increase in company profits by 25-95%!

Launching a loyalty program is an investment in the long-term development of the company. Its impact on brand satisfaction is even greater than price and perceived value. Thanks to recommendations from loyal customers, companies attract new customers and reduce marketing costs for acquisition.

Damn loyalty programs!

A study by Boston Consulting Group notes that loyalty programs often don't pay for themselves. The company calculated that in order to compensate for the costs of incentives and operational management of the program in the amount of 3% of revenues, sales would need to increase by 10%.

All over the world, traditional methods of stimulating customers through discounts and bonuses are becoming less and less effective. There are a number of explanations for this.

The number of loyalty programs is growing exponentially every year. The buyers' wallet no longer holds all the cards; some of them have moved to mobile applications, but this does not change the essence. In the United States, on average, there are 29 loyalty programs per customer, of which he actively uses no more than 12. In Russia, the indicators are not much better. According to RBC Research, 58% of loyalty cards remain virtually unclaimed.

Decreased activity of participants. As a consequence of the increase in the number of programs, the average engagement of participants is constantly falling. Clients are fed up with the same type of classic discount or bonus programs. To attract the attention of buyers, you need to increase the attractiveness of the reward. But this cannot be done without reducing the profitability of the program.

McKinsey conducted a study among 55 of the world's largest retailers on the effectiveness of loyalty programs. The results of the study are sobering - revenue growth in companies that invested in loyalty programs was similar or even slightly worse compared to companies that did not make such investments.

Are loyalty programs an effective investment or a waste of company resources?

Both positions are sides of the same coin. The loyalty program is one of the tools for building relationships with customers. Those companies that use it skillfully achieve impressive results. “On average for a hospital,” loyalty programs do not always live up to expectations. The problems lie not in the tool, but in how it is used. The decline in customer interest is associated not only and not so much with external factors. The main reasons lie in the low quality of implementation and subsequent management.

Key mistakes when implementing a loyalty program

Waste economy

Most of the problems associated with the incentive model arise at the design stage. Sometimes companies think that developing a loyalty program is easy and simple. I added it there and wrote it off there. Business then! The main thing is to buy the right one software. Alas, this is far from the case. Behind the apparent simplicity lies a carefully thought-out mechanism. A well-designed program is mathematical models, consumer psychology and trade marketing rolled into one.

Giving out discounts without understanding how a company will recoup such investments is an attraction of generosity that is bad for its financial performance. The launch of the program does not automatically lead to an increase in sales from the first months, but it certainly reduces the profitability of the business in the short term due to the budget for rewards and operation of the program.

The most active participants are loyal customers who already regularly consume the company's products and are unlikely to spend more. Their share of wallet (the share of purchases from the total demand in the category) is close to 100%. Customers who rarely make purchases receive few bonuses, which means that the loyalty program has a rather weak effect on them. What happens? Margins for regular customers increase slightly or even fall due to spending on bonuses, and those customers who could potentially increase consumption do not receive the necessary incentives.

A well-designed program is a combination of mathematical models, consumer psychology and trade marketing.

You can improve the economics of the program and at the same time increase its attractiveness for various categories of consumers using a system of levels and targeted campaigns to “grow” regular customers.

Cut seven times, measured once

The design stage lays the foundation, but the main work begins after the program is launched. Analysis, testing, optimization, evaluation - these are regular tasks that need to be performed day after day. Which customer segments are most sensitive to bonuses, what is the correlation between the size of the reward and the customer’s consumer activity. This information is the basis for optimizing the incentive model.

A team of specialists is needed to manage the program. Many companies cannot afford to have a separate staff for this, or do not see the need for it. This leads to the fact that the results of the program are not measured, there is no A complex approach to the evaluation of indicators. And as the saying goes: “You can’t manage what you can’t measure.” Decisions are made on a whim through trial and error. As a result, the loyalty program, instead of retaining customers, on the contrary, becomes a cause of consumer outflow.

One size fits all

Behind the abstract participants there are people - unique and contradictory. They have different needs, decision-making patterns and consumption habits. The main driving force of the loyalty program is customer centricity, which is formed based on a deep understanding of the behavior of various consumer segments.

Imagine if you offer your clients not bonuses, but shoes as a gift. Moreover, only elegant shoes of size 38 or sports sneakers of size 45 are available. Now estimate what proportion of clients the gift will be in size.

Same with loyalty programs. By offering a single incentive model for participants, the company a priori loses a significant part of the target audience. It is either extremely difficult for clients to accumulate bonuses, or the rewards are not attractive. Capgemini Consulting found that 44% of conversations on social media revolve around irrelevant incentive models and unattractive rewards.

How to Create the Next Generation Loyalty Program

Stop spending, start investing

As mentioned above, a common problem with loyalty programs is the lack of a clear strategy for working with different customer segments. The program becomes profitable when the company understands who, how and for what they receive bonuses. Imagine that for each client a profitability rate is set, on the basis of which an individual package of offers is formed. Segmental goals should be reflected in the program management operating model.

The right customer incentive model begins with assessing the customer's potential for the company.

The right customer incentive model begins with assessing how promising the customer is for the company. CLV is a guiding star that indicates what level of rewards is acceptable for a particular participant. CLV is not just an indicator, but an ideology of working with clients, which is based on a total analysis of all interactions between the consumer and the company. To understand the value of a client, it is not enough to measure financial indicators; consumption patterns, preferences and life interests are important. According to research by Nielsen and McKinsey, the use of a value approach leads to increased consumption among the most profitable and loyal consumers and a reduction in inappropriate spending on stimulating unprofitable and disloyal customers.

Personalize your participation in the program

Geolocation and transactional data, responses to promotions, activity on social networks, analysis of requests to the support service - these are grains of information that together create the digital genome of the buyer. Data is the new fuel for loyalty programs. The current level of technology development makes it possible to implement individual trajectories of client participation in the program based on the analysis of many factors - from purchase history to analytics from CCTV cameras.

Data from various information sources form the digital genome of the consumer.

Bond found that 2/3 of programs do not analyze the relevance of rewards for participants. Nothing kills interest in a program more than uninteresting prizes. Personalization of the reward system influences the activity and satisfaction of participants without increasing the cost of incentives. For example, some customers do not use bonuses, their consumer behavior does not change after joining the program. This may be due to the unattractiveness of the rewards, or the method of motivation does not meet the needs. In this case, other mechanics are tested - special conditions of service or instruments of non-material motivation - participation in a socially significant initiative or charity event.

Combine different types of customer motivation

Unfortunately, the vast majority of loyalty programs affect rational customer loyalty, built only on stimulating purchases and completely ignoring the emotional component. The result is dull and repetitive programs that do not arouse any enthusiasm among consumers. They encourage brand tolerance instead of truly building long-term loyalty. Emotional involvement of participants is not a one-time creative, but a strategy thought out with engineering precision to retain customer attention and stimulate the required consumption model. Gamification, sweepstakes, initiatives not directly related to purchase, educational projects, surprises and instant prizes, competitions, etc. The ingredients are known, all that remains is to properly prepare and serve.

Emotional involvement of participants is not a one-time creative, but a strategy thought out with engineering precision to retain customer attention and stimulate the required consumption model.

The sole purpose of most programs is to stimulate transactions, and other aspects of the consumer's interaction with the company are overlooked. Encouraging any activity around the company, including reviews, participation in promotions, publishing posts, creates an additional emotional connection between the brand and the buyer. It is important to understand that this kind of activity cannot be stimulated by material bonuses; this corrupts customers and attracts prize hunters.

Foster an omnichannel model of interaction with the company

Foster an omnichannel model of interaction with the company. Point of sale, website, mobile application, social networks, chatbots are far from full list ways to communicate with customers. The combination of different interaction channels increases audience reach, since the customer experience is not limited by the buyer’s geographic location or time of day. The omnichannel consumption model is advancing by leaps and bounds around the world following the spread of mobile devices.

A loyalty program is an excellent tool for creating new habits and consumption patterns. Let's give an example. Traditionally, offline retail has one channel of interaction with the buyer - the point of sale. If a person installs an application in which you can make a shopping list in a store, then their customer experience will expand beyond point of sale. Why not stimulate this consumption model with the help of a loyalty program - make a list, buy, receive increased bonuses.

Obviously, the loyalty program should be available through the channel that is available to the client in this moment. Some people prefer beautiful card in your wallet, but for some it is more convenient to use a mobile application or just give your phone number. Having a presence across multiple channels allows you to collect customer information and use it to optimize future interaction scenarios.

Actively manage your customer experience

Surprisingly, but true - traditional loyalty programs do not work with customer complaints and problems. Moreover, loyalty programs are on the balance sheet of marketers, and complaints and suggestions are received by the service and/or sales departments. According to statistics, 71% of clients part with a company due to poor service. The question is, why does a client need bonuses if the level of service is categorically not satisfactory? Every company has problems. But leaders know how to accept requests from clients in a timely manner and smooth out complaints. A description of approaches to dealing with negative customer experiences can be found in.

The new generation loyalty program is aimed at creating a positive customer experience and smoothing out difficult situations (complaints, operational failures, Bad mood client). Another direction in the evolution of loyalty programs is increasing the value of a product or service. The program should create tangible benefits and solve the buyer's problem. A great example is Amazon's program. Program members do not pay for delivery each time they place an order.

Conclusion

The loyalty program is a company asset and an additional competitive advantage. At the same time, it is no longer enough to distribute bonuses to clients. Classic discount and bonus mechanics are being replaced by comprehensive programs new generation, which solve a wider range of problems than just incentives for repeat purchases.

Managing Director NGM Mikhail Fokin