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Marketing Strategies, Loyalty Rewards, ROI, Customer Experience, Restaurants

How to Supercharge Your New Loyalty Program: 6 Proven Strategies

Posted on October 31, 2023

Mastering Customer Loyalty: 6 Expert Strategies to Boost Adoption and Redemptions

 

In the fast-paced world of business, especially in hospitality, customer loyalty is the golden ticket to success. Building a strong, engaged customer base not only drives revenue but also creates brand advocates who spread the word about your business. Seasoned brands know that a strong loyalty program can drive massive engagement from your most intense brands. 

If you're looking to tweak, boost, or otherwise maximize your loyalty program, here are six powerful strategies to optimize your program through enhanced customer adoption and skyrocketed redemptions.

1. Set up a Confirmation Email: Information is key. After a guest signs up for your loyalty program, promptly send them a confirmation email. This email should serve as a warm welcome, reassuring them that their registration was successful

A key element of the confirmation email is to alleviate questions by providing clear, concise details about how the program works, ensuring they understand the benefits they’re entitled to. A well-crafted confirmation email sets the stage for a positive customer experience.

2. Send a Welcome Offer: First impressions matter, especially in the world of customer loyalty. Make your customers feel special by offering a compelling welcome gift as soon as they sign up. Not only will this get them excited, but it will, more importantly, drive a repeat visit.

Create a sense of urgency around this offer, making them feel like they must use it right away. A tempting welcome offer not only expresses gratitude for their loyalty but also motivates them to engage with your brand immediately. Examples include double point or discount offers for bounce-backs with a limited redemption window.

3. Set up SMS notifications for Promotions: In the age of smartphones, text messages have become an indispensable part of our daily lives. Utilize this powerful channel by sending promotions and offers via SMS. 

With an impressive read rate of 98%, SMS notifications ensure your messages are seen promptly. By directly reaching customers on their mobile devices, you significantly increase the chances of them engaging with your promotions, leading to higher redemptions.

4. Set Up Timely Expiry Reminders:  One of the most common pitfalls in loyalty programs is forgetting to remind customers about expiring offers. Create timely reminders, especially for promotions with limited validity periods. 

For example, if you have a two-week promotional window, send reminders a few days before the offer expires. Proactive reminders ensure that customers are aware of the impending deadline, encouraging them to make use of the offer before it slips away.

5. Avoid the Winback and Embrace Preventative Lapsing:  Don’t wait for customers to churn before taking action. Implement a preventative lapsing strategy by reaching out to customers who haven’t made a transaction within a specific timeframe, before they are lost. 

For instance, offer bonus points if they haven’t made a purchase in 30 days (or any time frame shorter than your average churn rate) or send a special offer if they haven’t visited in the same period. By catching their attention early, you can re-engage them and prevent them from slipping away.

6. Create a Birthday Offer: Birthdays are personal and significant occasions for your customers. Show them you care by creating a personalized birthday offer. This gesture not only strengthens the emotional connection between your brand and the customer but also provides a compelling reason for them to engage with your business on their special day. Remember, a little appreciation goes a long way in building lasting customer loyalty.

Optimizing your loyalty program involves a strategic blend of communication, personalized offers, and timely reminders. By implementing these six expert strategies, you can create a loyalty program that not only attracts customers but also keeps them coming back for more. 
Remember, a happy guest is a loyal guest, and loyalty is the cornerstone of a thriving business. So, go ahead, put these strategies into action, and watch your loyalty program transform into a powerful tool for business growth and customer satisfaction. 

Want to see how brands using Spengdo can easily do all of this and more with a best-in-class loyalty solution? Book a demo now.