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How to Create Customer Loyalty Program

Discover what to concentrate on when developing a high-performing customer loyalty program with Findbulous' comprehensive guide.

Step #1: Building the Loyalty Program Concept

Launching a loyalty program should begin with a blueprint. The value of a concept cannot be overstated: the more components of the rewards program is set up, the less unexpected obstacles arise later.

Exploring the Program Structure

Geographies:

Decide on:

  • The Countries where the program will be launched first

  • The Languages that will be used

  • The Currencies that will be available

  • The Number of Countries Launched (all at once or one at a time)

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Basic structure:

  • Create high-level overview of the theme, design and overall feel of the program.

  • Create marketable and catchy name for the program, loyalty currency and tiers.

  • Establish the basic values for how many points the base currency translates to (e.g. RM 1 = 1 point)

  • Set the amount of points are required to reach a higher tier of the program.

 

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Channels:

  • Decide on the channels will be involved in the loyalty program

  • Create an omnichannel loyalty program.

  • Specify both the initial channels and the channels that will be introduced later.

Program Logic & Rewards

User Journeys & Reporting

Enrollment & Opt-Out Processes:

  • Seamless enrollment process = good first impression.

  • Keep the process short, precise to save the customer’s time.

  • You can always utilize surveys to get extra data later if all the data is not acquired right now.

  • As for the opt-out process, it still should be quick and painless for the customer.

  • Learn or benefit from the opt-out process; ask one last question to learn why members have decided to opt out.

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Loyalty Campaigns:

  • Create limited-time or segment-specific events that offers double points, instant rewards, or other perks.

  • List any loyalty campaigns that you are planning to launch right after the program goes live.

 

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Challenges:

  • Create series of actions that members have to complete to earn a reward.

  • List out all of the actions that members will need to complete in each challenge

  • Specify the prizes when the challenge have completed.

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Reporting:

  • Report and track the KPIs before the program has launched.

  • Monitor the relevant data points.

  • Early consideration of reporting capabilities during the planning process to avoid missing out on valuable data.

Key Takeaways

  • The process of creating the concept of the loyalty program must be comprehensive & in-depth.

  • To ensure that the loyalty program is figured out in time for the implementation stage, the concept should include as many program aspects as is practical.

  • Think about the geographical markets involved, program logic, user journeys, campaigns and reporting

Point logic:

  • Any money or points that your loyalty program offers should be subject to specific restrictions, such as rounding rules, refund policies, expiration periods, etc.

  • Calculate the amount of additional points added for signing up for the program or creating a product review.

  • Establish the points required to redeem each award.

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Tier logic:

  • Decide the number of tiers offered in the loyalty program (3-5 is optimal).

  • Specify whether the tier system is points-based or spend-based.

  • Determine the point / spend range should be for each tier.

  • Set the tier expiration and condition on how members will be downgraded.

 

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Channels:

  • Decide whether to offer monetary rewards like coupons or experiential benefits.

  • Consider the costs for both for you and the customers.

  • Determine if rewards can be redeemed by members for multiple times.

  • Determine whether unused rewards will have an expiration date.

Learn More About

How to Create Customer Loyalty Program 

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