Developing a powerful loyalty programme in 9 steps
Empower your brand with a successful loyalty programme using our 9-step framework, designed to simplify the process of building lasting customer relations.
The power of customer loyalty
Did you know that it can cost up to five times more to acquire a new customer compared to retaining an existing one? Additionally, the success rate of selling to an existing customer is 60-70%, in contrast to 5-20% for a new customer.
So, what does this entail? It pays off to focus on retaining and increasing the lifetime value of existing customers – and loyalty programmes are an excellent tool for achieving exactly that!
However, implementing a loyalty programme can be a complex and substantial task – and sometimes businesses initiate even though it isn’t the right fit for a specific business. That’s why we’ve developed a framework that can help you tackle the process in a structured way.
But first, let’s look into why you should even consider implementing a loyalty programme in the first place.
4 gains of implementing a loyalty programme
1. Boost Retention & CLV
Rewards and exclusive benefits drive repeat business and shortens the interval between purchases, which results in higher customer lifetime value (CLV). In fact, 75% of consumers say they are likely to make another purchase after receiving an incentive and customers with an emotional relationship with a brand have a 306% higher lifetime value.
2. Rich Insights & Personalisation
Loyalty data fuels tailored experiences, enhancing customer loyalty through personalised engagement. When companies do personalisation well, it has the potential to create a 6.4x lift in member satisfaction with the loyalty program. What’s more is that a staggering 71% of B2C and 86% of B2B customers expects companies to be well informed about their personal information and previous interactions with the brand.
3. Smart Up-Sell & Cross-Sell
Personalisation and loyalty programmes enhance upselling and cross-selling, leading to revenue growth. In fact, adding a loyalty program to an e-commerce platform can increase average order quantity by 319% and loyalty leaders grow revenues roughly 2.5x as fast as other companies in their industries.
4. Advocacy & Word-of-Mouth
Delighted and loyal customers spread your brand via word-of-mouth, fuelling natural growth and referrals. In fact, an impressive 73% of consumers are likelier to recommend brands with good loyalty programs – and customers acquired through positive word-of-mouth promotion spend up to 200% more than the average customer!
The IMPACT Loyalty Programme Framework
So, now we’ve established why implementing a loyalty programme is good for business. However, before embarking on your loyalty journey, you must first evaluate whether a loyalty programme suits the needs of your business or if alternatives like marketing automation suffice.
At IMPACT, we take great pride in providing honest and open guidance. That’s why we always begin our loyalty projects by evaluating whether a loyalty programme is the right fit for our client’s business.
If we decide to proceed with the loyalty programme, we’ve developed a solid game plan for crafting and implementing a powerful loyalty programme that resonates with your business goals and engages your customers.
Three phases. Nine steps. One goal: to develop an exceptional loyalty programme that enhances retention, amplifies brand loyalty and boosts sales.
Phase 1: Concept
Phase 2: Business
Phase 3: Activation
What's on-brand for you?
6 things you need to consider
Want us to help you get started on your loyalty programme?
Reach out to Torben. He’s eager to help.