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How to Encourage More Customers to Join Your Loyalty Program
Implementing a New Member Sign-Up Package
One of the best ways to encourage your customers to sign up for your loyalty program is to utilize the new member package strategy. This usually involves a lead magnet in exchange for them to opt in.
A lead magnet is essentially something that businesses give away in exchange for customers to do something, which is usually in exchange for things like personal information.
In this scenario, let’s take the restaurant industry as an example. Restaurants can easily include a QR code in their menus for customers to scan, which will take them to the opt-in form.
Upon joining the loyalty program, customers could enjoy an instant 15% discount for the upcoming bill, on top of other perks.
After working with countless restaurants and hotels, we found that this method is tried and tested, and can work for almost every industry!
Pedro, a renowned footwear brand under the Charles and Keith Group based in Singapore, uses this exact method to promote sign-ups for their loyalty programs.
Take a look at the screenshot above, you’ll notice that new members have the opportunity to enjoy up to $40 off on their initial purchase, requiring a minimum spend of $220 during the sign-up and checkout process.
Their sign-up rate is extremely high, as they’re providing immense value to customers looking to purchase their products anyway!
Use Vouchers to Entice Customers Through an App
If you’re in just about any B2C industry, using vouchers as a lead magnet can be a great strategy to attract more people to join your loyalty program through a dedicated app.
Here’s the general idea: Offer vouchers to familiarize customers with using your app while they shop or visit your location.
This not only ensures sign-ups for your loyalty program but also keeps customers actively engaged within your app.
Implementing a tiered loyalty point system is also a smart move. For example, customers can earn tiers, unlocking rewards, or additional vouchers at each level.
You can also try out adding a touch of gamification. Encourage members to unlock tiers by playing mini-games and completing missions, creating a dynamic experience similar to a video game.
You can also encourage users to spread the word about your app by sharing the download link with friends and family, or spice things up with a lucky draw for enticing prizes.
Alternatively, you can prompt daily check-ins to land your app on their phone’s homepage!
Utilize Referral/Word of Mouth Marketing
Boosting signups can be effectively achieved through referral marketing, particularly the potent tool of word-of-mouth.
Word-of-mouth marketing stands out as the most robust form of organic promotion because people inherently trust the opinions of their friends and family.
It provides crucial trust signals and social proof that can significantly impact perceptions of a brand.
Think about it – you’re likely more open to trying out a recommended restaurant if it comes with a thumbs-up from your inner circle.
To harness the power of word-of-mouth and elevate your loyalty program, consider implementing a targeted referral scheme for your existing members.
Let’s paint a scenario: You operate in the retail sector and aim to expand your loyalty program’s membership.
You can entice your current members to bring in recruits by offering a custom referral link, easily trackable in most CRM systems.
The key is to ensure both the referrer and the referee receive rewarding incentives. For instance, both could earn $10 in shopping credits in this scenario.
Take it up a notch by offering a more substantial reward when the referee makes a purchase.
This approach encourages not only sign-ups but also actual engagement. Consider providing a more generous reward to both parties as a further incentive for meaningful transactions.
Prominent fintech SaaS companies like ‘Wise’ have flourished using similar strategies, offering enticing affiliate commissions, particularly tied to specific actions like making a transfer.
For a deeper dive into Wise’s successful referral program, you can learn more details here.
Leverage Loyalty Program Reviews
Beyond referrals, you can try reaching out to your current customers or loyalty program members for reviews on platforms like Google, Facebook, or any independent review site.
Encourage them not just to share thoughts on your overall business but to shine a light on your loyalty program specifically.
This dual approach makes sure that users and potential visitors get wind of your loyalty program, subtly reinforcing its presence.
An easy way to gauge the impact is by keeping an eye on the search volume for your brand’s loyalty program on Google.
As users read reviews, their curiosity might lead them to search for your loyalty program, making it easy for you to track its effectiveness.
Here’s a simple guide to checking your brand’s loyalty program search frequency on Google:
- Head to Ahref’s Free Keyword Research Tool.
- Pick your primary country.
- In the text box, type in “[Your Brand] Loyalty Program.”
- Keep tabs on it by monitoring it every two weeks or monthly to spot trends in search volume.
This approach not only spreads the word about your loyalty program but also naturally draws in new sign-ups through organic curiosity. Give it a shot!
Staff Training Promotion to Enhance Customer Experience
Now, let’s talk about another smart move—training your team to amp up customer experience while subtly introducing your loyalty program.
This trick shines in places like restaurants, hospitality, or retail. Picture this: in a retail setting, you coach your cashier or sales associate to smoothly suggest signing up for the loyalty program during checkout. Mix in the lead magnet strategy we discussed earlier to sweeten the deal.
Imagine the allure of a little freebie upon registration or a slick discount on their total order—talk about winning!
Want to take it up a notch? Motivate your team with a commission-based reward system.
They score a small commission for each successful sign-up, and the cherry on top? You can effortlessly track each conversion using a CRM.
The key here is offering an incentive for both your staff and your customers for a win-win-win!
Utilize Pop Up Messages for Your Website or Online Store
If your business revolves more towards the digital space, or you’re looking to expand your presence online, you can try optimizing your website and using pop-up messages to get sign-ups.
Without getting too technical, here are some of the best practices for website message pop-ups to maximize your odds of conversion:
- Prompt your pop-up around 15 to 30 seconds after a visitor enters your page. This makes sure you’re weeding out the bounces and have the best chance to convert an interested user.
- Keep pop-ups at two times per user. Excessive pop-ups can be intrusive and give the impression of spam, which can erode trust and branding with visitors. Preserving a great user experience is crucial for the long-term success of your brand. Users who have a positive experience on your website are more likely to stay longer, engage with your content, and potentially convert them to loyalty program members. On top of that, Google’s ranking factor also takes into account various aspects of user experience, like bounce rate, and average time per session. If your website overwhelms users with pop-ups, it can lead to less time spent on your site and more bounces, which can ultimately decrease your visibility on Google.
- Your pop-up should be attractive and tell users what they’ll get exactly if they sign up for your loyalty program (lead magnet). Users should be able to see the value you’re providing in one glance, to make sure you have the best chances of conversion.
Try Out Online & Offline Affiliate Marketing
Boosting your loyalty program or driving leads and sales is a cinch through an affiliate program. Picture it as a turbocharged referral program, but on a grander scale.
While referral programs thrive among close-knit circles of friends and family, affiliate programs target wider, colder audiences. The online affiliate marketing scene is a mammoth $17 billion industry as of now.
Affiliate marketing comes in three different types: bloggers, influencers, and promoters.
Bloggers and influencers operate similarly, but bloggers share product/service insights on their websites, drawing organic search traffic or using platforms like Pinterest.
This is ideal because their audience is warm—already in the market for a specific product or service, seeking a seasoned perspective.
Influencers, meanwhile, leverage platforms like Instagram, TikTok, or YouTube.
They showcase products or services through videos and images. Some bloggers also transition to video content on these platforms in addition to their websites.
Now, onto promoters. They’re the folks distributing flyers or staging roadshows in places like malls or subway stations. This method is more of a cold sales approach, often offline.
Big players like UNHCR, credit card companies, and banks utilize these promoters for credit card sign-ups.
Similar to bloggers and influencers, this approach can be pricier. Agencies often come into play, charging a fee or commission per conversion, with a portion going to the promoter.
The key to a successful affiliate program remains an enticing incentive. People will prioritize your loyalty program if you offer better rewards than the competition.
Rates vary by industry and target location. For instance, if your primary audience is in the U.S. and you’re in finance, you might shell out one of the highest rates, with a CPA of up to $250. Conversely, if you’re aiming for loyalty sign-ups for your restaurant in Hong Kong, you can expect a lower cost.
Once you’ve outlined your affiliate program, approach bloggers, influencers, or agencies for negotiation, remember, aim for a win-win-win strategy for optimal results!
Why It's Important to Grow & Scale Your Loyalty Program
Growing your loyalty program is essential for attracting and engaging customers. Offering enticing sign-up packages, such as discounts or vouchers, can draw in new customers who might not have otherwise joined. This approach not only boosts initial sign-ups but also encourages these new members to become regular customers.
Moreover, enhancing a loyalty program with tiered systems and gamification keeps members actively engaged. This fosters stronger brand loyalty and encourages customers to spend more per visit.
Gamification, in particular, makes the loyalty experience interactive and appealing to a wider audience, maintaining interest over time.
Additionally, leveraging referral marketing and word-of-mouth amplifies the impact of a loyalty program. By incentivizing current members to refer friends and family, businesses can expand their program’s reach and build trust.
Implementing targeted referral schemes makes sure both the referrers and referees receive rewards, encouraging ongoing advocacy and driving organic growth.
Lastly, the most important thing why it’s important to scale your loyalty program is value-added benefits to customers.
These are things that are nice-to-have for your customer, and can differentiate you from your competition. This allows you to slowly pivot from competing on price, which leads to better profit margins.
