Tags: Incentives & Rebates
5 Tips to Use Loyalty Programs as Customer Acquisition Tools
When you think of a customer loyalty program, what comes to mind? Do you think of signing up for a loyalty card at your favorite store? What about earning loyalty points towards a percentage off your next purchase? These are all examples of customer loyalty programs that can be used, not just for customer retention (maintaining the customers you currently have) but also for new customer acquisition.
Customer loyalty programs are designed to incentivize valued customers using a variety of rewards. Not only do loyalty programs increase customer satisfaction, they also foster lifelong brand loyalty when implemented effectively.
Incentive programs can be fully customized and catered to your needs through our customer loyalty program software, O-vations™. This platform is a one-stop-shop for managing your customized rewards program so that your customer base can easily access and use their unique rewards, as well as allow you to monitor and optimize your loyalty program for further success.
Loyalty Programs for Acquisition
While loyalty programs are often thought of as a marketing tool used for customer retention, loyalty programs as a customer acquisition strategy are just as powerful. The whole point of customer acquisition is to catch the attention of a potential customer and turn them into a loyal customer. Below are a few examples of how you can utilize loyalty programs when acquiring new valued customers.
As the name suggests, these types of rewards are given as a bonus for being a first time customer. It is a way of saying “ Thank you for choosing me!” And, it can be a great incentive for a new customer to come back for more as it opens the door for future rewards.
The goal of your welcome reward should be to craft a feeling of belonging and enhance their customer experience. New customers should get a sense of joining a community that they resonate with and advocate for. Depending on your loyalty program and existing customer data, you might offer new customers an instant discount on their first purchase, free shipping, or double points towards another monetary reward.
Limited Time Offers
Another effective customer acquisition tool is the limited time offer. This type of reward has a sense of urgency that could be just the thing an indecisive customer needs to finally make the jump.
At Group O we provide customer loyalty program management and implementation in addition to unique and customizable rewards. Choose from prepaid reward cards, branded merchandise, and rebates to incentivise new and existing customers.
Who doesn’t love to win big? With gamification customers can spin a prize wheel for a random reward or play another game to earn money or loyalty points. This is a fun and engaging marketing method to spark customer loyalty from the beginning.
And the prizes can be as big or as small as you want. With O-vations™ you can customize your loyalty program to fit the needs of your company and potential customers. Not only is spinning a prize wheel fun, it also encourages customer retention.
Create contests through social media for potential customers to enter. This is a fun marketing strategy to interact and increase customer engagement with a younger audience who are more likely to follow their favorite brands on social media. Instagram and Facebook are great places to start reaching out. The more people who enter contests, the more potentially loyal customers you will reach.
Again, contests can be totally customizable to fit your company’s needs. Select rewards that will interest your target audience based on existing customer behavior. Work with our program managers to create a contest that is sure to engage with new customers.
Lastly, referral programs can be effective tools in inspiring customer loyalty during acquisition. Offer rewards like free shipping or a bogo sale to new customers who recommend you to their friends and family. Not only will this incentivize a new customer into joining your program, it will also lead to more acquisition by word of mouth.
Seeing as word of mouth contributes to 20% to 50% of all purchasing decisions, referral programs are a great way to turn newly acquired customers into loyal brand advocates.
It's Time to Consider a Loyalty Program as a Customer Acquisition Tool
Ready to start acquiring new customers? Group O has you covered with our fully customizable and optimized loyalty program platform. We work with you to develop a loyalty program and marketing campaigns that brings in new customers and inspires them to become repeat business. Call an expert today 866-476-8761.