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Four loyalty programs worth following

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By Diana Gomez

Every day I read about how to grow your business and expand your clientele. And sure, getting new customers is an important factor in any marketing tactic, but what about the ones you already have?

Hand with loyalty cards

One look at how phone companies are rethinking their treatment of already-loyal customers is proof that those are the ones who need attention. Don’t just give new customers the chance to get a new phone at a good deal. Offer those perks to the people who you already have on board, and they’ll be spreading the good news rather than telling their friends to steer clear.

Don’t limit yourself. Stop thinking of ways to get newbies when the key lies in your current customers — that is, if they’re satisfied. And they will be with a simple thank you. Reward them with experiences worth bragging about. Points-based loyalty programs are fine if the reward is clear, but it’s the reward experiences that will help grow your business via good old word-of-mouth, from your currently thrilled customers.

Here are some examples of companies that apparently get it:

Starbucks

It didn’t take much convincing for me when a cashier first told me how much I could save with My Starbucks Rewards. The idea is to download the app, which keeps track of every purchase. With each purchase, you get a star, and on the 15th, you get a free drink. Keep collecting stars and you can get extras at no cost. You know all of those adjectives we use to order a coffee? They cost money, and it all adds up.

So rather than pay extra for soy milk and vanilla, I accrued 50 stars and got all of that stuff for free. And it genuinely feels like I’m doing a friend a favor by informing them that their latte could be cheaper. Everyone wants a cheaper Starbucks coffee, don’t they? But get this: not only do you get rewarded for purchases through the app, but you can also make purchases within it and avoid the queue. Quite the game changer when you need a quick coffee en route to the office at 8:45 in the morning.

Orange

One of the most successful, widely used loyalty programs is offered by Orange. Formerly known as Orange Wednesdays, two-for-one Wednesdays have staying power with the deal of a deal: two movies for the price of one. Not only do you have to tell a friend (because you have to bring a friend), but that person will be equally enthusiastic about the reward of a free night out.

Wednesday is now a crazily crowded night at the theatre, but Orange also offers discounts on other events. From theatre to comedy to music, users get a chance to have all kinds of cheap nights out. Again, the idea of offering an actual experience proves effective in gaining loyalty. How many people stick with Orange solely due to the two-for-one deal? A lot.

KLM, and Most Airlines

Although airline rewards programs have been popular for years, they’re worth mentioning because it’s a tried and true example of how customers will keep coming back again and again if there’s a reward worth getting. And cheaper tickets, upgrades, and VIP treatment in airport lounges are definitely perks people want.

Sure, I can find a lot of great deals from a competitor, but wasting miles on an airline that I haven’t done a lot of business with is a no-brainer: I’d rather stick with the program I’ve built the most miles with. When those points accrue and inevitably pay off, it’s entirely worth it to get an entire free flight one day rather than a few slightly cheaper ones along the way.

Costa Coffee

So many people love a tangible rewards card, and the Costa Coffee card is a pretty popular one. Simply registering for a card alone will earn your tenth coffee on the house, and that immediate gratification is just the hook that will leave a customer instantly…hooked.

Keep using the card, and every nine hits gets you a free coffee. Sometimes, a simple free coffee is worth shouting about on a Facebook status. Anyone can give away things people may not need, but there’s a guaranteed smile in store for anyone whose day is made brighter by a complimentary cup of something that is entirely necessary for the day’s survival.

So there you have it. Follow in the footsteps of programs like these that have earned their own following and kept it, and you could very well see the numbers rise without spending a second focused on anyone other than the customers you’ve already snagged. Offer incentives that are actual experiences worth shouting about, and they probably will. People appreciate a thank you now and then, and showing that your company is generous will speak to your customers the most. Ultimately, the benefits will boomerang right back at you.

What loyalty program do you use the most?

Author’s Bio: Diana Gomez is the Marketing Coordinator at Lyoness America, where she is instrumental in the implementation of marketing and social media strategies for USA and Canada. Lyoness is an international shopping community and loyalty rewards program, where businesses and consumers benefit with free membership and money back with every purchase. Check out Lyoness on Twitter.

Are Your Customer Relationship Management Skills Up to Par?

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If you see your sales numbers and return on investment (ROI) taking a significant dip as we near the midway point of 2012, perhaps it is time to give a second look to your company’s customer relationship management (CRM) skills.

Sit down and simply ask yourself as a small business owner what tactics you are employing to make the experience every one of your customers has better each time.

Among the steps that you should be employing:

  • Properly branding your product – While other companies scale back their marketing efforts when dollars get tight, others see the chance to take advantage of the tough times and gain an edge on the competition. When it comes to branding, it is more important than ever to make your product stand out;
  • Determine value to your customers – At times when consumers are concerned about their financial security as many have been in the last few years, they are in need of reassurance. Consumers are not likely to make binge purchases; many want the sense of making sensible purchases, control, security and simplicity, leading them to be more frugal when it comes to their buying habits;
  • Social media presence – Whether it is Twitter, Facebook or another venue, social media offers a great means to engage the customer and find out what they like and what they don’t. You may or may not want to employ someone in your business on a full-time basis to oversee this area, but at the least it should be attended to on a part-time basis;
  • Customer experience – Another main area to focus in on is the customer experience. Customers have a lot of options with which to choose from, so how are you going to set yourself apart from your rivals? The key here is making the customer experience worthwhile enough where they want to keep coming back time and time again. Do your employees put your customers first or are they an after-thought? Do your employees who work the phones treat the customers like they’d want to be treated, or are they short and rude with them? Finally, do your employees provide the necessary answer/s when a customer has a question about a product? Know these things and don’t take them for granted;
  • Customer rewards – Lastly, what are you doing to reward your customers for their loyalty to your business? A customer will continue to come back over and over again if they like the service and feel the prices are reasonable. It is important as a business owner to treat returning customers properly and reward them for their continued patronage, be it through special rewards programs like discounts and the like. There is a reason this particular customer came back to you for purchases, so never forget that.

Make customer relation management skills a top priority at your small business in order to better position you and your employees to reap the rewards.

Dave Thomas, who discusses subjects such as business plans templates and customer service call centers, writes extensively for San Diego-based Business.com.