Leave a comment
Get the GH Bookmarklet

Ask GH

  • AA

    Anuj Adhiya

    almost 6 years ago #

    I'd be interested in why you feel the need a customer loyalty program to start.

    But assuming you need one, look at the most popular loyalty programs out there - ie those of airlines and hotels

    All of them follow the basic gamification structure of SAPS (https://growthhackers.com/cash-is-for-saps/) - with the caveat that they don'

    So as practical examples in airlines, the most loyal users get
    Status = The Platinum card which allow you
    Access = to a dedicated checkin counter/lounges that also gives you
    Power = Boarding first
    Stuff = Amenity kits/better food etc

    The next tier of users get
    Status = Gold card which allows you
    Access = first priority for upgrade based on availability/dedicated lounges and
    Power = Boarding after the platinum folks
    Stuff = Amenity kits/better food etc (if you get the upgrade)

    The next tier gets
    Status = Silver card which allows you
    Access = 2nd priority for upgrade after the gold folks and
    Power = boarding with group 1 in economy
    Stuff = Amenity kits/better food etc (if you get the upgrade)

    and so on until you get to the folks with no real loyalty, for whom the only way to get any of those things at the airport is to spring hard cash to get any of those things.

    So I'd just take this gamification structure and figure out the various "tiers" for your product/service based on this.

    The other thing that should be obvious is "Stuff" is what inevitably costs you money - the rest not necessarily so. So whatever you think of as giving as "Stuff", should take into account your revenue/profits so that what you give away eats into that as minimally as possible.

    Hope that helps.

  • TG

    Timi Garai

    over 5 years ago #

    I work at Antavo (https://antavo.com/ ), a company which provides a software-as-a-service tool to run point-based loyalty programs. If you are still looking for an answer to your question, then I can share with you some insights as to how to start building your own loyalty program:

    1) Technical research: If you develop your own program, you will need to find out what program language you should use, what kind of features you need. If you want to use a third party solution, then you can save time and IT costs. There are plug-ins, third party apps, agencies, software-as-a-service that can help you to a quick loyalty program launch.
    Trackable customer actions: The basic is to reward customers for completing certain actions in your webstore/store. But for rewarding an action, you need to know that it really happened.

    2) Reward scheme: These are what keep customers in loyalty programs. Sweepstakes, badges, downloadable items, events, coupons, VIP tickets, and special experiences are among the top rewards that customers are looking for in a loyalty program.

    3) Game mechanism: You should consider many aspects here. How can customers earn points? How can they redeem these points for rewards? Can they reach different customer levels based on their collected points?

    4) Communication: Your loyalty program should communicate with your customers in the form of system notifications, banners, and auto-emails. On the other hand, you should talk about the loyalty program during your marketing communication. Promote it as a new product, create advertisements for it and send out newsletters about it.

    5) Maintenance: After building a loyalty program, you can’t leave it alone. You need to monitor its performance and introduce new rewards for keeping up the excitement.

    6) Budget planning: You need to know how much you will spend on marketing your loyalty program. How much will the rewards cost you? How much will the delivery of the rewards cost you?

    Hope it helps!

    If you are interested in further details, I can recommend our ebook: http://academy.antavo.com/ebooks/easy-10%C2%AD-step-guide-to-creating-your-first-loyalty-program/
    (It includes more details about creating a loyalty program. It’s Antavospecific, but it can give you many great ideas about where to start.)

SHARE
5
5