Know the goal of the campaign.
Creating a successful loyalty marketing campaign starts with knowing the goal of the campaign. Do you want more unique customers? Do you want to reward repeat visitors? This is the most important thing – without knowing what you want out of a campaign before you begin, it’s virtually impossible for that campaign to be successful.
Sometimes, even the most successful merchant will have great customers or regulars who suddenly stop coming in. This is particularly relevant in salons and the automotive industry, although it’s a concept that can (and should) be applied to most loyalty brand marketing campaigns.
Utilize automated engagement messages.
Automated engagement messages are sent to consumers who have stopped checking in at the merchant’s kiosk for a certain period of time. These customers are then specifically targeted by the system for a special offer the merchant sets up.
For example, think of a hair salon. Clients are recommended to come back every five to six weeks for a trim, and by the seventh or eighth week, if the client fails to come in, the system will automatically send them a specific, targeted offer – think “$5 off your next haircut” or “we miss u! come in and receive free shampoo w/ trim”.
Use unique tiered rewards.
The key word here is unique. This reward system is based on the idea that at specific intervals of check-ins, a customer will get a different reward, leading up to better and better rewards each time. For instance, at the first check-in, a customer will receive a 10% off coupon, at 5 check-ins, they’ll receive 25% off, and at 10 check-ins, receive a free item or service.
Know the success targets.
The redemption rate for these offers is what we look at to decide if the campaign was successful. Around 40 percent of automated engagement offers redeemed is considered very successful; that means of the number of inactive customers that received this message and would have otherwise stopped coming back to the salon for whatever reason, 40 percent came back and redeemed the offer. Those are customers that could potentially have been lost had the message not been sent.
Knowing what your particular success targets are can help you to update your plan as you go through your campaign and evaluate success during or at the end of the campaign.
Know what to avoid.
One of the most frequent issues merchants see in getting higher redemption rates is unrealistic expiration dates. Expiration dates on rewards are necessary; you don’t particularly want someone to stack up offers indefinitely. However, if someone spends a year getting their reward, you don’t want to give them a three-day window to redeem it.
Using these proven keys to success, you should be able to formulate a plan for loyalty marketing that is successful and will work for your business.