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3 Customer Feedback Hacks For a Stronger Loyalty Program

How many customer loyalty programs do you belong to? I’m not even sure I know. That's not good news for those brands I’m signed up with, is it?They say the average person participates in 6.4 customer loyalty programs and yet is only active in 3.9.While loyalty programs promise to gain customer engagement with your brand as well as retention, and word-of-mouth, the sad truth is 53% of loyalty users admit to having quit at least one loyalty program in the last year. And research from Capgemini points out that almost 90% of social media comments on loyalty programs are negative. You need a better way to create a loyalty program that your customers care about. Here are three hacks you can use to ensure your program works better for you:

Action Real-Time Customer Feedback

Studies have shown that the number one way to build customer loyalty is by showing you care. You must show you are interested in your customer, their needs, and their world. Demonstrate that you want to be a part of their lives beyond selling a product or service.Actioning real-time customer feedback is the best way to understand your customers. Learn what works and doesn't work by sending a simple survey to customers at trigger points in their journey. Now don't forget to respond. Action shows your brand is actively listening by reacting to customer responses. The actions—whether that is to provide a complimentary service, or train a single employee, or even offer a service to the right person at the right time—demonstrate active listening.Here’s a cool example: A local hotel wanted better insight into their customers’ needs. But most of their customers used discount sites to book their rooms and the connection was out of reach for the hotel. They decided to offer free wifi in exchange for emails. Then actioned those emails by surveying the customers and discovered where they could improve. They made the improvements and let the customers know by offering them a discount to come back and try them again. The customers were then encouraged to socially share reviews on Yelp, Twitter, and Facebook.

Recognize and Reward Engagement

According to Capgemini, only 25% of loyalty programs reward customers for some form of engagement. When you only reward for transactions it leaves the customer feeling like all you want from them is to buy, buy, buy. You can get a better outcome simply by asking them to share their purchases on their social media.Here’s a cool example: Stitch Fix, an online subscription and personal shopping service in the United States, sends out regular offers that reward customers for sharing. They offer the customer $25 toward their next fix if they share with a friend and that friend signs up for a fix. This is a simple way to reward your loyal customers for sharing your great service.

Customize Offers

Only 11% of loyalty programs offer personalized rewards based on a customer’s data—purchase history or location. This is a big gap between expectation and action. Everyone expects a personalized experience in today’s engagement economy. Paying attention to the information in a customer's journey can be as simple as giving them something to do with the information your share.Here’s a cool example: My credit union shows me my credit score every time I go into my account. While that is a nice feature, what they did next made it even better. This month next to my score were two simple ways to make my score even better with links to the credit union programs that would do just that. I thought, huh, I didn’t know about that, clicked through, and signed up.These three simple hacks are easy to implement and can take your business to the next level. After all, isn’t that what a loyalty program is designed to do?Want to know how you can automate your customer feedback? Click below and get a demo.

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About the author

John Ballinger

He's cool.

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