When to Launch a Loyalty Program? 03December

When to Launch a Loyalty Program?

You may ask yourself the question “When to launch a loyalty program?” Let’s take a look at the answer together.

 

If we were to approach customer loyalty programs with the 5W1H method, we could come up with answers to the questions of “what” such programs are, “who” they are for, “why” they are used, “how” they are implemented, and “where” they are devised. However, it is not really possible to give a single answer to the question “when” they are to be implemented. As a matter of fact, you can start implementing them whenever you wish.

 

In this article, we will look into what various industries do to launch loyalty programs for which there are no specific timing.

 

The question regarding the ideal time to start loyalty programs is one of the biggest issues. Obviously, delayed programs can be a handicap, but taking hurried action before having an adequate setup can also cause harm in the long term. The general perception in the market is to take action after establishing a certain customer base and increasing the business volume. On the other hand, some brands choose to focus on other strategies aimed at increasing sales rather than on loyalty programs.

 

The truth is, there is no right or wrong time to launch a loyalty program. It would be more beneficial to take action, depending on what the company targets. For instance, if you have established your e-commerce site and virtual POS system, it is vital that you immediately start considering customer loyalty.

 

Make sure to identify your goal

Your loyalty program should have four main goals:

 

1. To offer benefits and value to loyal customers

2. To encourage other customers for loyalty

3. To increase profit

4. To collect more data about customers and their spending habits

 

All of the above are goals that you would not want to hold off, or to put it more precisely, that you would not be able to benefit from if you held them off. Customer loyalty should be at the focal point of any and all processes of your company.

 

“When is the ideal time to announce the loyalty program?”

It all depends on what you are planning to do with your loyalty program and what you will offer your customers as a reward. (When creating a loyalty program from scratch, it would be good to get support from expert professionals.) Another point to take into consideration is conveying the loyalty program to your staff and field teams. The sooner you implement it, the more easily you can have your staff adapt to it by informing them about how the loyalty program works and what kind of rewards the customers will receive.

 

After you have the setup ready for your loyalty program, there is no point in waiting any longer as every second that passes could mean potential loss of sales from that point on. If your staff has learned the program by heart and the program has become operable, not putting it in action as soon as you start your physical or virtual sales may cause losses that will make you feel sorry. You could pick a holiday or festive season to launch your loyalty program as customers shop heavily at those times.

 

 

Launching the loyalty program

Definitely start small and make sure that every bargain you offer has been tested in advance. If you believe that launching the loyalty program as soon as possible is truly a good idea, you may allow the scope of the loyalty program to expand as your sales go up.

 

Let’s take an example. You have launched the loyalty program and got 25 customers registered on your mailing list to receive special offers. These members may enjoy this service. However, when you reach 5,000 members, you may realize that customer needs are starting to change and that customers prefer discount code coupons now.

 

It is totally up to you to start the loyalty program on the right scale. Try to offer things that your customers actually want and make sure that they enjoy participating in the loyalty program.

 

In brief, the significance of loyalty programs is increasing day by day in today’s world and if you have already decided to implement a loyalty program, there is no point in holding it off. Create a program that is right for your company and that meets the expectations of your customers. Build a company-wide loyalty consciousness and persuade your staff as to what this means for the company. Above all, make sure that everything is working properly before you launch the program. A loyalty program that does not work properly would lead to customer loss, instead of customer loyalty.

 

By using the modular PayFlex Loyalty applications designed to serve loyalty needs of companies and to prevent customer loss, do not lose any more time. With PayFlex Loyalty that enables you to take the right steps towards customer loyalty at the right time, you do not need huge budgets to offer cashback points and discounts to your customers or to organize campaigns that fit their areas of interest. Thanks to tailor-made modules, it is now possible to design loyalty set ups in the most optimized way.