How To Boost Customer Engagement Through Loyalty Programs

Loyalty Program

Today, the enterprise is becoming increasingly concerned about how to attract the customer for using their services. However, finding new customers often requires a lot of money and cannot ensure the effectiveness of the marketing program. So that the enterprise is focusing on investment into the old customer and they built a loyalty program to encourage the customer to keep buying again or create value for themselves in the long term. Did your business have any Loyalty Programs? This article has been written to answer the question “How to boost Customer Engagement through loyalty Programs?”. These are the criteria for which you can concentrate:

1. Having a long-term vision

Making the Loyalty Programs is difficult for the first time. To survey consumer needs, you'll need to spend more money on surveys, and develop loyalty software but you do not ensure the revenue is brought back to your account. Sometimes the result does not come soon and you need to keep it up. The key point is acquiring a new customer can cost more than retaining an existing customer. For creating customer engagement, you need to have a long-term vision. You should focus on the sustainable development strategy instead of the immediate benefits.

2. Focusing on the customer demand

The simple reason why the customers purchase your products is to reach a certain goal. Conceivably, to win the customer's heart we must understand the customer's needs and wants. Therefore, a successful loyalty program cannot go without being customer-centric and focusing on designing new experiences to increase customer engagement with your brand. Also, you should spend time on researching your competitors’ loyalty programs to tailor them to your campaigns. By using the value proposition canvas model, you can easily identify your customer’s pains and gains which give you more insight for designing great loyalty programs. 

3. Identifying the goals you want to achieve from the customers

The loyalty platform can be shaped differently depending on the goals. For instance, if the goal of the Loyalty Program is to boost the number of consumers who engage with your company, you can plan it with a range of gifts or discounts available while downloading the app or making the first purchase.

Grab Gift Code

On another hand, if your objective is growing revenue from the existing consumer, you need to design the program based on the incremental prize per the total amount they spent for your products or services. Therefore, when you understand and correctly identify the customer’s objectives that you want to enhance the relationship, you can design an effective program to reach your goals.

4. Providing the positive engagement

A Loyalty Program can serve two different values to your brand. The first is to encourage the new customer to stick around after purchasing your goods and services. The second is to raise the positive feedback of the existing customer with your product. Providing positive engagement will increase the chances that the existing customers will share their experience with other people in their network. The more customers feel appreciated with your brand, the more rate you can have a new customer buy and become a loyal participant of your enterprise. Using your effort to keep the positive interactions of the customer, evenly when customers are unhappy, will bring the great benefits to your Loyalty Programs and increase your customer loyalty.

5.  Analyzing the unique benefits  for your customers

Making the Loyalty Programs is a good plan but the users have a hundred loyalty programs for choosing from many competitors. So that if your platform does not have differences, it is hard to get the customer for using or retaining them. By analyzing customer needs and the loyalty programs of the competitors, you may develop a program that is useful and will be an outstanding product to customers with the utilities and values that cannot be denied.

6. Using loyalty software to connect and maintain the relationship with your customers


Starbucks Loyalty Application

A good loyalty Program has no meaning if you cannot show it to your customer. Building a visual loyalty software will help you deliver maximum value to the customer. In the market, it has many vendors who can provide loyalty software on many platforms of your choice. The most popular product introduced by them is the loyalty mobile application because the mobile application is the development trending and widely used by the people. Although the foundation ideal of these products is the same, it does not mean any product will be perfectly fitted with your Loyalty Programs. Each application has been built on a specific loyalty application architecture and it is the hardest part if you want to change once you finish the application. So that you need to carefully think about the architecture solution which you want to apply in the beginning. In case you don’t have any knowledge or experience about the loyalty mobile application, you can ask the vendor to provide the loyalty solution which they are maintaining for their customers (with anonymous customer name). At least, you will have some ideas and review their solutions and compare them to your loyalty program. After that, you can select the suitable loyalty software for your enterprise.

7. Keeping review and enhance your program

Assessing the customer experience and evaluating the result as the first purpose of your Loyalty Programs. Based on that, updating your Loyalty Programs and making it more exciting: through all the above steps, you have a complete Loyalty Programs but you don’t know you are going in the right way or not. That's why you need a rest and review the result you got. The customer tastes change very fast, the thing that was right yesterday does not mean still right today. This stage will expand your awareness of the change and have the necessary modification. It is the end stage of the Loyalty Programs growth cycle and you can upgrade your business when you pass each cycle.

In conclusion, for booting the Customer Engagement through Loyalty Programs, you should focus into:

 - Having a long-term vision to aware of the future earnings and loss from your business by running the Loyalty Programs.

 - Identifying the potential resource of your enterprise for making the strategy to develop the Loyalty Program and choosing the effective program.

 - Focusing on the customers’ needs for ensuring your loyalty programs can satisfy your customers’ wants, needs, and preferences

 - Identifying the value you want to provide to the customers for making a good strategy and saving your source.

 - Analyzing the unique benefits you can bring to customers for increasing the competitiveness of your Loyalty Programs.

 - Using loyalty software to support the building of Loyalty Programs for making a visual tool to communicate with the customer and express your enterprise value to the specific customer group.

 - Assessing the customer experience and evaluating the result for analyzing the effectiveness of the Loyalty Programs and having a necessary change for improving your business.


We hope this post could help you make a successful project. Stay tuned and keep following our publication and if you are seeking an efficient loyalty platform, please do not hesitate to contact Kyanon Digital.