It doesn’t matter if you’re in the restaurant or retail game, a solid loyalty program with benefits deemed valuable by customers is worth its weight in gold. Good loyalty programs are proven to increase sales and drive customer retention, and according to the recently released 2016 For Love or Money research report, 82 percent of Australians over the age of 18 are enrolled in at least one loyalty program with the average number of memberships being 3.9.
In terms of what constitutes a good customer loyalty program, there are a number of key factors that the For Love or Money report found:
The program needs to respect the customer’s personal information. Members are happy to provide their data for benefits as long as they understand why the program needs the information.
The program has to be worth the customer’s while. The report found that the top reason Australians defected from loyalty programmes (51 percent) was because they were not earning enough points/ rewards fast enough.
It has to be easy to use and understand. The report found that 19 percent of Australians stopped using loyalty programs because it was too much of a hassle to participate in. Adding to that, simplicity and immediacy of the program ranked as the most important factor for on-boarding new members at 49 precent.