Loyalty programs and coupon codes have been popular tactics many businesses have successfully used to nurture their client base and keep them coming back for more. Recently, however, some companies are starting to see a decline in enrollment and engagement. Consumers are now looking for more comprehensive membership programs and exclusive offers that provide more value. Here’s how you can adapt your current program to fit this model.
Loyalty Programs Vs Memberships Programs
Consumers no longer find value in free point-based loyalty programs. Typically, these types of programs are open to any level of consumer. As a result, loyal customers feel undervalued. 68% of millennial consumers report that they will not be loyal to a brand if that brand does not have a good loyalty program.
To overcome this challenge, businesses are focusing on transforming their old programs into paid models that provide things like exclusive access to products, free shipping, and VIP events. By requiring customers to make an investment and providing a high-value reward, companies can actually increase individual purchases and retain customers longer.
Coupon codes are common practice for many businesses. Whether a new product or service is released or a business is looking for clear inventory, e-blasts with these codes are typically used on a regular basis. However, new customers are no longer seeing the value of these general discounts. Instead, these consumers want to receive custom promotions based on their specific shopping needs. 80% of consumers want a personalized experience. And according to Forbes, this year brands need to focus on replacing blanket discounts that don’t keep shoppers around for long with unique offerings based on their needs.
If your business is already offering some form of a loyalty program, you may want to evaluate what you are giving consumers in exchange for their enrollment. Although things like free shipping and exclusive events are coveted, your program should also include educational information that can help your business continue to influence your audience. The first step to take in this process is to evaluate how your audience is responding to your messaging. Then, you can make changes to meet their needs head-on.
46% of consumers have increased their purchases with a company because it offered loyalty rewards.
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