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4 ways to hook customers into your loyalty program

Written by: Drew Marquesen
(View Author Bio)

First impressions are everything and for a brand the stakes couldn’t be higher. During the acquisition phase of the customer lifecycle, these first impression moments are subject to snap observations that can lead to inaccurate judgments and drop-offs. When your objective is to capture true customer loyalty with sustained, long-term engagement, first impression moments are incredibly important.

These first impression moments can be perilous, especially when asking someone to take an action or provide their personal information. Maybe there’s a registration process, a request for a personal email or phone number, Terms and Conditions to accept or a login to set up. All can lead to someone dropping off before their first engagement even begins. One example of risk during acquisition showed that 14% of an audience made the effort to accept the Terms and Conditions and then dropped off, leaving free, zero-obligation rewards on the table.

Creating a compelling first impression in your loyalty program is essential for fostering lasting customer engagement. Our research has identified a framework designed to minimise drop-offs at initial contact and promote continuous interaction. The cornerstone of this strategy involves two key components: first, offer opportunities to engage, earn, and redeem points or rewards right from the first interaction. This immediate gratification not only captures interest but also sets the tone for an ongoing relationship. Second, ensure that the earning potential presented is substantial enough to lead to a memorable redemption experience. This cultivates a sense of achievement and satisfaction, encouraging customers to stay active within the program. By implementing these principles, you can create a dynamic and engaging loyalty solution that resonates with your customers from the very beginning.

Here are four ways to do that:

1. Remove barriers to enrolment and activation.

Avoid lengthy registration processes, ask for as little as possible and minimise the effort to engage. This encourages customers to engage with your loyalty program without dropping off. When possible, use a single sign on (SSO) for a seamless enrolment.

2. Offer plenty of initial engagement opportunities.

Onboarding, gamification, curated content, motivation, and accumulation can all be leveraged to drive initial engagement and reduce drop-offs.

3. Craft a compelling WIFM.

What a customer can earn needs to be directly correlated to what they’re being asked to do. The “What's in it for me” needs to be clear, concise and perceived to be in their favour in order to remove barriers to engage and accelerate earnings.

4. Create redemption opportunities right away.

Customers should be able to earn enough at first contact to also redeem a reward. Redemption is a critical milestone in sustained engagement. It endears someone to the program, so make it intuitive and frictionless.

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By eliminating obstacles to engagement and ensuring that customers experience accelerated earnings from the very first interaction, businesses can significantly enhance customer acquisition and retention. When customers see immediate value and benefit from their initial contact, they are more likely to feel a positive connection to the program. This sense of instant gratification not only hooks them initially but also fosters a sense of ongoing commitment and loyalty. Ensuring that the process is seamless and rewarding from the start can create a strong foundation for sustained engagement, ultimately leading to a more loyal customer base that is invested in the long-term success of the program.

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Source: Article originally appeared on BI WORLDWIDE

Drew Marquesen

Drew Marquesen

Senior Strategist, Customer Engagement Group

Drew Marquesen is a Senior Strategist designing Customer and Member engagement solutions for BI Worldwide with 12+ years of driving outcomes for his clients. He’s a skilled operator with a strategic mindset and a unique aptitude for the art + science of consumer engagement marketing. He’s currently focused on content strategy and how data can be transformed into meaningful, actionable stories and improved lifecycle moments.