Points Programs

3 min read

Boost Customer or Client Loyalty

As the beginning of 2011 approaches, many organizations are beginning the search for ideas to sustain and grow business in the coming year. Although there is no exact formula for boosting customer or client loyalty, there are three basic concepts that can generate loyalty and increase results for your company. This week, let’s take a look at how rewards, retention and referrals can all persuade your customers to come back happy and ready for more.

Provide Relevant Rewards

There are many customer loyalty reward programs out there and while some give shoppers company-related products and merchandise, others reward you with brand name merchandise. On Sunday, I went over to my parents’ house for lunch and my mother proudly pulled out a brand new Dyson Ball™ vacuum. She had earned enough points through a customer loyalty program to order this item and was really impressed with the process. She made it a point to pull it from her hallway closet and demonstrate how it worked for me. The vacuum was a relevant reward for my mother because it was something she a) really wanted and could use and b) would never have bought for herself.

Offering a wide variety and values of brand name merchandise is a great way to provide relevant rewards for a large, heterogeneous audience. If you are not sure what kinds of rewards to consider for your loyalty reward program, why not start by asking your customers via a short survey or consult a reward program provider that has experience with companies in your industry. When you reward people for their loyalty, the actual items that people receive can be the most important aspect of the program.

Create a Customer-Focused Environment

In addition to providing items that people find rewarding, customers and clients are also retained because of the quality of the service they receive. I remember walking up to a checkout aisle in a store once and looking up a large banner that hung over the entryway. The banner read something to the effect of, “Our Associates are empowered to make you 100% satisfied when you leave.” This statement has remained in my mind over the years because when an issue arises, a cashier is able to take care of it without having to call for management approval while I and all the other people in line wait. I am impressed with this company because they make transactions quicker and smoother with this policy. Also, the statement shows that the company has faith in its employees, which can be a rarity.

Tim Tonkin advises in the BNet.com article, Three ways to Boost Customer Loyalty, “A loyalty scheme isn’t worth much if your customer service stinks. If the customer service in your business isn’t up to scratch it might be worth concentrating on that before you can start thinking about customer loyalty.” Tonkin cites a survey that found the number-one factor in increasing transaction amounts is good customer service, while poor customer service can have the exact opposite effect. Loyalty reward programs should not only focus on rewarding customers and clients, but also the employees who provide excellent customer service that leads to increased spend and retention.

Recognize Referrals

Debra Northart writes in her article on SeachEngineLand.com, “While unhappy customers seem all too willing to post condemnatory comments based on their experience with you, happy customers are not nearly as inclined to do the same. In order to get those supportive customers to advocate for you, a loyalty or rewards program can be just the step to encourage such action.” As an Account Manager, I am very thankful to receive referrals from my contacts. It amazes me that people use their own time to spread the word of what we do and how we can benefit another organization. In order to thank and recognize referrals, I follow up with the referring person and the referred company immediately. Don’t forget thatreferrals grow your business organically and rewarding and recognizing referral activity should be a part of your loyalty reward program.

By creating a customer loyalty program that encompasses all of these factors, you can effectively boost next year’s results.

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