Loyalty Programs: Industry Hack or Business Boosters?!
Everyone loves free or discounted stuff, that’s just the way life goes. Businesses, especially restaurants have used this information to their advantage and started increasing customer loyalty and consumer interaction. By offering loyalty programs businesses can not only let their regulars know about the up and coming promotions or new products but can also attract new customers and hopefully retain their loyalty. To have a successful reward-based loyalty system, businesses need to be in control of all of their data and know how to analyze it efficiently. Reward based loyalty programs helps the businesses be in the front and center of the consumers mind but only if done right. In some instances, reward-based programs have even been known to drive possible consumers away by spamming the phones of customers with offers. Finding the right balance between giving consumers useful, engaging, reliable information in the form of offers and annoying them with useless information can be a delicate needle to thread. To help with data analytics and designing a useful reward strategy, business usually hire third party firms to conduct extensive research and host focus groups to design the perfect strategy. Third party firms aren’t usually cheap though and it’s better to conduct a data analysis in house with people that are familiar with the business. To conduct an in-house data analysis efficiently and correctly to save time and labor, as a business owner has to make sure that he/she is getting the right data. Having the correct data is just part of the equation with a successful reward-based system. Another huge part of the equation is the accessibility of the offers to the users. A rewards program is useless if doesn’t reach the desired users and results. For a reward-based loyalty program to work effectively, consumers need to be signed up for the medium the rewards are going to be promoted, it may be an app of an email promotional campaign as long as the users are engaged. If more and more people are signed up for the app or the email blast, there’s a higher chance of more people stopping by the business and increasing foot traffic. Also, if a consumer is drawn to a business through a promotional offer or a reward, chances are they already know what they want before they even enter the door, reducing wait times. On the other hand, if the offer is redeemable through delivery or pick up it is guaranteed to generate even more business as it combines two things that us as human beings love: Convenience and free stuff. One other effective strategy with reward-based loyalty program is rewarding people that encourage other new consumers to sign up, Uber jumps to the front of the mind as a great example of that. Having consumers sign up more users builds up a cult like following for the business as well as comradery between the consumers. People love being a part of the conversation, therefore naturally the most effective reward-based system is the one that involves its consumers in the conversation about what rewards they would like. At the end of the day, nobody knows what a consumer wants better than the consumer themselves. Loyalty programs are here to stay and the more a business incentivizes their consumers, the more the traffic instore increases. If a loyalty program is planned and executed right, it can be a huge boom to a business.