7 Key Components to Operating a Successful Loyalty Program
Using proven loyalty techniques, retailers can attract customers, enhance their experiences, and encourage repeat visits. We developed a practical framework to help retailers structure their work on improving all three areas, we call it The Customer Connection Cycle”
The Liquid Barcodes Customer Connection Cycle is our innovative framework that redefines customer relationships beyond transactions.
The Cycle has seven steps. Each step is linked to an in-depth article with real-world examples and a short explainer video.
Loyalty Program Foundations
In the dynamic landscape of convenience retail, developing a distinctive loyalty program is essential to stay competitive and relevant.
Invite higher sales with an easy, empowering, and engaging loyalty program.
Engage customers with a loyalty program that is clear, compelling, and consistent.
Here are two articles that further explain The 3 E’s and The 3 C’s! Each article contains tips, tricks and a short explainer video to bring the concepts to life.
Seven Steps to Infinite Loyalty
| 1. | Recruit This step ensures you have both the permission and the power to communicate with customers. An effective recruitment strategy uses a range of tactics to connect with customers, whether they are online, offline, or somewhere in between. |
| 2. | Engage Gaining maximum participation is your goal and it should center on ensuring members feel welcomed through an interesting and relevant program. By treating users as members and making them feel special, they’ll reward you with their wallet share. Celebrating birthdays and program anniversaries, providing frequent rewards and perks, offering fun games, and asking for feedback are key ways to put the customer in control. |
| 3. | Promote Craft an effective promotional plan to boost awareness and encourage purchases and repeat business for key products. Your promotional calendar should be straightforward yet dynamic, incorporating both transactional and emotional elements to resonate with customers practically and emotionally. |
| 4. | In-Store Excellence Getting customers into the store is the goal of your program, but recognizing them once they are inside is imperative. Simplify redemption, acknowledge top customers, and make them feel special. Ensure the app is useful at the store by linking payments with the loyalty program for seamless earning and redemption. Encourage store employees to recognize program members and incentivize them to use the app themselves so they’re well-versed in the perks. |
| 5. | Reward The pivotal “moment of truth” occurs with instant rewards, fostering trust and long-term loyalty. This cycle ensures customers return consistently. There are three common reward collection methods: digital stamps (buy 3, get 4th free), points (collect 1,000 points and get a free item), and subscriptions (a paid program offering unlimited products). |
| 6. | Analyze Regularly examine key program metrics and track member recruitment, engagement, and loyalty through NPS and transaction analysis. Continuously build customer profiles, monitor transaction frequency, and use A/B testing to optimize targeted campaigns and promotions. |
| 7. | Operate! Once you’ve hooked a loyal customer, focus on operating a lean and efficient program. Welcome members with a well-designed communication cycle and maintain engagement. Utilize automation tools to target and energize members with relevant, local offers. Always identify and reward top customers. |
Achieve Loyalty Excellence
Large or small, retailers have found that having a functional, sleek, easy-to-use loyalty app is the optimal way to stand above the competition.
Developing a distinctive loyalty program is essential in the dynamic landscape of convenience retail, where challenges abound. The Liquid Barcodes Convenience Retail Loyalty Playbook serves as your hands-on tool to make this happen.
We developed the Liquid Barcodes Customer Connection Cycle framework to illustrate how to strategically engage customers through various channels, converting them into loyal program participants. The framework uses proven loyalty mechanisms to ensure customers return sooner, becoming habitual purchasers.
Recognizing the significance of a strong customer base in driving revenue, the key principle of the Liquid Barcodes Customer Connection Cycle is simplicity, ensuring your program is easy to understand, join, earn, and redeem. It’s not just a proprietary approach; it’s our shared strategy to elevate your loyalty program and drive your business to success.
About Liquid Barcodes
Liquid Barcodes is a leading global loyalty and digital marketing technology partner specializing in the convenience and foodservice industries. The proprietary, cloud-based technology platform allows retailers to create and manage their digital marketing campaigns with the “customer connection cycle” process to engage, promote and reward customers’ activities in real time across digital and media channels.
Liquid Barcodes loyalty platform is powering loyalty programs for industry partners across several global markets, by offering unique subscription and mobile payment programs, machine learning, personalization, gamification, loyalty, and other capabilities.
About the Author
Carolyn Schnare, Chief Content Officer, Liquid Barcodes
Carolyn Schnare has been involved with the convenience retailing industry for two decades with extensive knowledge of customer engagement and marketing, sustainability, and community outreach. Before Liquid Barcodes, Schnare worked at NACS (National Association of Convenience Stores) in a variety of roles from event production to membership and most recently as Director of Strategic Initiatives and host and producer of the popular industry podcast, Convenience Matters. Schnare currently anchors the popular Shop Talk LIVE! video series produced by Global Convenience Store Focus media group.
