Before you jump in, however, you might want to educate yourself on some of the options you’ll have when setting up your loyalty program, so that you can better narrow down what will work best for your brand and your clients. Here are some of the specific subtypes you should consider when you’re nailing down the details for your own loyalty program.

The Points Program

Perhaps one of the most well-known loyalty varieties is the points program. In this type of loyalty system, customers are able to build up “points” for every purchase that they make with you, then redeem those points in exchange for a reward once they’ve accumulated enough.

Creating a points program is great if you want something that has a low barrier to entry, presents a low-risk for new sign-ups, and getting a substantial percentage of people to opt-in. 

On the flipside, though, you’ll need to keep in mind that a points program is fairly basic, so engagement might not be all you’re expecting, and you’ll have a harder time distinguishing your program and offerings from your competitors’.

The Tiered Program

Tiered loyalty programs deviate from those bog-standard points programs insofar as they tie rewards not to points that customers must spend, but by the amount of loyalty a customer has shown to your brand. As customers “rank up” they gain access to even better rewards, and this helps higher-tier customers feel like they’re really forging a relationship with your brand.

The Subscription Program

If you have a program where customers are making regular payments in exchange for instant-rewards, then you’ve probably got yourself a subscription program. These are a great way to instantly attract those highly engaged customers and present them with clear value that goes above and beyond the rewards of most other types of loyalty programs.

The Partner Program

In a partner system, you’ll team up with another brand to introduce exclusive rewards that customers can access by doing business with either of you. A great way to co-mingle and gain access to new audiences, if you don’t mind sharing the benefits with a closely related business.

Hybrid Programs

Lastly, you could always choose to hybridize two or more types of programs together to come up with something new. This might be a great option if you see elements of different programs that would gel with your brand and customers, so always keep your eyes peeled for ways to innovate.

The post 5 Types of Customer Loyalty Programs appeared first on Baltimore News Journal.

Understanding Loyalty

In the 60s and 70s, approaches to mass marketing ignored loyalty as a factor in favor of customer acquisition. Marketing efforts over the following decades have changed their focus to retention, zoning in on the lifetime value of existing customers as well as acquisition. 

Loyalty is the maintenance of trust, whether that’s for persons or organizations. It fosters strong feelings of support and allegiance, giving a customer the sense of belonging to the relationship. That might sound as though it only works in interpersonal relationships, but it turns out that customers develop this same sense of loyalty to brands. 

This phenomenon is typically called brand loyalty, but a newer focus shifts the power of loyalty bonds to the people instead of characteristics of the brand. Now, customer loyalty is the driving force behind gaining and securing a strong clientele. 

Relationship Marketing

Implementing a relationship marketing strategy to foster customer loyalty requires a change in thinking and tactics. At its core, your businesses must:

• Offer a primary service to build relations
• Customize that relationship and tailor it to the individual
• Augment the primary service to incorporate added benefits
• Offer pricing services that encourage loyalty
• Market to employees so they perform better for customers

While each of these are a goal in themselves, they contribute to the main goal of attracting and maintaining loyal customers. Each enhances customer satisfaction, which fosters retention. This takes the focus off single transaction and onto the lifetime value a customer holds with all of the transactions they will ever make. 

Instead of plugging in each piece of information for a customer, especially if you run a large operation, there are various tools that can make relationship marketing easier. ValueCloud® for Customer Success is an excellent option and a better way to employ the marketing tactics above. 

Build the Bond and Targeting

Determining a customer’s level of loyalty begins with the existing bond your business has created. This bond can be psychological, emotional, economic, or physical. The first, and most important, element of bonding with a brand is pricing incentives. Customers want value, which translates to saving money. 

From there, adding in additional value to the price is essential. There needs to be more than a good sale to foster loyalty. You need to provide something they cannot get elsewhere, something that is difficult for them to provide for themselves, and a type of customer service that would otherwise be expensive. 

These are just the foundations, but with them you can assess who your loyal customers are. Which come back often, and which spend the most? Those who positively respond to your service and deals hold the potential to be lifelong customers. 

Your brand’s image holds immense sway, too. The image you portray must resonate with people on a personal level. As they connect with your brand and the ideals it holds dear, a personal relationship is built that makes them more prone to loyalty. 

The post How Relationship Marketing Can Drive Customer Loyalty appeared first on Baltimore News Journal.