IT Brief Australia logo
Technology news for Australia's largest enterprises
Story image

How to implement an effective and personalised loyalty program

By Contributor
Wed 8 Jun 2022

Article by Redcat Sales and Marketing director Lawrence Pelletier.

There’s no doubt about it – incorporating a robust customer loyalty program in almost any consumer-facing business can pay off.

From retail to hospitality, personalised and data-driven loyalty programs are a proven tool for strengthening customer trust, improving brand recognition and boosting sales.

According to Antavo’s Global Customer Loyalty Report (2022), the top two reasons companies offer a customer loyalty program are to increase customer engagement and revenue. These findings are unsurprising, given that consumers who are members of high-performing loyalty programs are 80% more likely to prefer the participating brand over its competitors and twice as likely to recommend the brand to others.

With multiple loyalty programs available, many businesses looking to take the plunge may be asking themselves: where to start?

To help answer this question, below are four tips for implementing a successful, effective and personalised loyalty program.

1.    Make the sign-up process easy

One of the most important things to remember when creating a loyalty program in any business is to keep it simple – especially during the customer onboarding process.

Is the sign-up process lengthy, convoluted and difficult to navigate? If so, customers may not think it’s worth the bother.

As a general rule, consumers want to use as little energy as possible when joining a new service, so the old adage of ‘less is more’ should always be front of mind.

Small steps a business can take to make the initial loyalty onboarding process easier for customers include:

  • Where possible, pre-populate fields of information. Enabling tools like AutoFill can help with this.  
  • Ask for a customer’s basic information first, then seek more later. Simply getting them across the line should be the primary goal at this early stage.
  • Ensure front-of-house staff know how to onboard customers onto loyalty programs. They should be upskilled wherever possible, know what benefits are on offer, and be able to convey those benefits clearly to customers.
  • Keep the loyalty platform digital. It’s 2022 – no one wants a physical card they need to carry around in their wallet! Cards that can be added to customers’ digital wallets on their smartphones are a great way of doing this – no one ever leaves home without their phone.

2.    Think outside the box

Loyalty rewards don’t always have to be financial. While offering discounts or cashback deals remains an effective drawcard, there are other options out there. It’s important to consider what your cohort of customers might want and what types of benefits will win them over.

Offering things like secret menus in hospitality, or limited-edition items available exclusively to retail loyalty members, have a proven track record of success. Alternatively, tiered ‘VIP’ memberships are proving to be popular, as they allow businesses to look beyond discount-only benefits and can make customers feel appreciated for their repeat purchases.

Similarly, offering products or items that can only be purchased using loyalty points can encourage customers to target their spending with your brand.

At the end of the day, the underlying question businesses must ask themselves is: what will encourage customers to come back? Thinking outside the box can certainly be an effective strategy.

3.    Get personal

One of the most important aspects of establishing a successful loyalty program – one that increases company profits – is by making it personalised.

Personalising loyalty offerings is an extremely effective way of getting customers to make repeat purchases and increase their trust of and appreciation for a particular brand. A business should ask itself: what can we do to make our customers feel like we know what they want and how they like to shop?

Personalisation in this context can take many forms – from providing offers on categories of products a customer has proven to like, to matching communication content and style with the customer’s profile.

Tips to consider include: 

-    Are target customers young people who live in busy, crowded, metropolitan areas? Offer a discount on ‘contactless ordering’ purchases, so they don’t need to line up close to others. 
-    Has a loyalty member failed to purchase any items over the past three months? Encourage them back into store and make them feel like they are wanted back. 
-    Is a member not responding to loyalty benefits communicated via email? Try in-app notifications or text messages instead.
-    Want your members to feel the love? ‘Surprise and delight’ them on their birthday by offering a free gift or discount on their birthday. 

4.   Let the data talk

The beauty of loyalty programs is that they become a great tool to truly get to know and understand a customer’s purchasing habits. Customer loyalty comes in different shapes and forms, and the data will reflect this.

Remember, a customer that purchases from a business twice a week is just as loyal as a customer that consistently purchases twice a year – the only difference is their purchasing frequency. It is important to identify these patterns through back-end data and set different loyalty objectives to specific customer groups.

Is a customer consistently purchasing a specific item five times per year? Extend an exclusive offer to them if they refer a friend to its loyalty program or invite them to reach ‘VIP’ status if they double their purchasing frequency. Is a customer only purchasing one item per transaction? Offer a discount on add-ons, or entice them to make extra purchases.

Data is an incredibly powerful asset that allows businesses to deep dive into customer purchasing habits which, in turn, can boost profits.

The power of loyalty

Personalised loyalty programs are an effective tool for businesses across multiple industries to strengthen customer trust, improve brand recognition, and boost sales.

Loyalty programs can take businesses to a new level by keeping processes simple, offering unique benefits, and using available data to inform decisions.

Customer satisfaction reigns supreme at the end of the day, and loyalty programs are a core ingredient in your recipe for success.

Related stories
Top stories
Story image
Artificial Intelligence
Decision Inc. partners with to expand offering
Decision Inc. Australia has partnered with to expand its offering to clients in the retail, FMCG, manufacturing, supply chain and logistics sectors.
Story image
EXCLUSIVE: Finding the best data center for your business needs with datacenterHawk
Companies using cloud are consistently looking for the best storage solutions to suit their enterprise needs and often have to go through rather complex processes in order to find the right fit.
Story image
Examining the future of ransomware threats with Vectra’s CTO
As customers' valuable data move to the cloud, so will ransomware. What is the current landscape and what do we need to know?
Story image
Your tools, your choice: why allow employees to choose their own devices?
Jamf Australia says giving your team the freedom to work with their digital device of choice could help to attract and retain top talent in a tight labour market.
Story image
Adobe study finds lack of digital trust and utilisation in Australian Government agencies
New research commissioned by Adobe has revealed a significant lack of digital trust within Australian Government departments, along with the continued underutilisation of key digital processes.
Story image
How organisations can mitigate IoT and IIoT security risks
IoT and IIoT come with inherent risks because they are often deployed faster than they can be secured, putting organisations in danger of cyber threats. Here are tips on how to mitigate those risks.
Story image
Tech job moves
Tech job moves - Bitdefender, Cohesity, Fortinet & MODIFI
We round up all job appointments from June 27-30, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
The next stage for 5G in thermal materials - IDTechEx
IDTechEx says higher frequency deployments, such as mmWave devices and very different station types such as small cells, present their own technological evolution and, with it, thermal challenges. 
Story image
How Airwallex helps businesses achieve globalisation success
As markets continue to shift, businesses need to be able to provide the same quality of service for customers regardless of where they are located around the world.
Digital Transformation
Discover the 5 signs your business is ready for a cloud-based ERP. Is your business being left behind as more of your competitors switch to the cloud?
Link image
Story image
Palo Alto Networks' cloud security platform receives IRAP assessment
"We provide help protect all forms of compute, cloud native services and access to data within public and private sectors."
Story image
Evonik relies on Getac F110 tablet to control autonomous robot
The aim of the project is to evaluate the practicality of an automated robotic maintenance and inspection solution in the chemical industry.
Project management
Discover the 4 crucial factors for choosing the right job-costing solution. Is your team struggling to cost jobs and keep projects running on budget?
Link image
Story image
Monitors are an excellent incentive for getting employees back
The pandemic has taught us that hybrid working is a lot easier than we would’ve thought, so how can the office be made to feel as comfortable as home? The answer could be staring you in the face right now.
Story image
SAS wins Microsoft ISV 2022 Partner of the Year award
"We formed the SAS and Microsoft strategic partnership with a shared goal of making it easier for customers to drive better decisions in the cloud."
Story image
How the metaverse will change the future of the supply chain
The metaverse is set to significantly change the way we live and work, so what problems can it solve in supply chain management?
Story image
Four things wholesale distributors need to consider for FY2023
In a post-pandemic world, there are many things for a distribution business to juggle. ERP solutions company Wiise narrows down what companies should focus on.
Story image
Ericsson and Ciena, Telstra enhance service capacity for Telstra's optical network
Ericsson, Telstra, and Ciena have announced new enhancements to Telstra's Next Generation Optical Network, which will increase the service capacity of Telstra's optical network to 400 GE (Gigabit per Second Ethernet).
Story image
Four factors to consider when choosing the right job accounting solution
Progressive job-based businesses can achieve success by strengthening their ability to quantify every cost attributable to the delivery of an outcome for a customer.
Supply chain
Discover the 4 critical priorities for wholesale distribution businesses in FY23. Are you worried about how supply chain issues may affect your business in 2023?
Link image
Story image
Sutton Tools deploys Infor M3 CloudSuite for manufacturing
Sutton Tools has also implemented the Infor OS cloud operating platform, including Infor Intelligent Open Network and Mongoose.
Story image
How New South Wales state departments achieved cloud migration success
State departments in New South Wales are heading to the cloud to achieve better workflow solutions, and one company is paving the way for their success.
Story image
Data Protection
Five signs your business is ready to move to the cloud
Many organisations are thinking about moving to the cloud. But what are the signs you are ready, and what are the reasons to move?
Story image
New VMware offerings improve cloud infrastructure management
VMware has unveiled VMware vSphere+ and VMware vSAN+ to help organisations bring benefits of the cloud to existing on-prem infrastructure.
Story image
Artificial Intelligence
Vectra AI named as AWS security competency partner
Threat detection and response company Vectra AI has announced that it has become an Amazon Web Services Security Competency Partner.
Story image
Tech and data’s role in the changing face of compliance
Accenture's study found that 93% of respondents agree or strongly agree new technologies such as AI and cloud make compliance easier.
Story image
Artificial Intelligence
Siemens expands NVIDIA partnership for industrial metaverse
Siemens is expanding its partnership with NVIDIA to enable the industrial metaverse and increase the use of AI-driven digital twin technology.
Story image
Supply chain
Supply chains continue to be disrupted, enterprises embrace circular economy
“Businesses urgently need to find a solution that can help them to manage this disruption, and transition to a circular economy."
Story image
Artificial Intelligence
Dynatrace extends automatic release validation capabilities
Dynatrace has extended its platform release validation capabilities to improve user experience at every stage of the software development lifecycle.
Story image
Ivanti puts spotlight on power of employee digital experiences
The report revealed that 49% of employees are frustrated by the tech and tools their organisation provides and 64% believe this impacts morale.
Story image
Enterprise Resource Planning / ERP
Five ways your ERP is letting you down and why it's time for a change
Wiise explains while moving to a new system may seem daunting, the truth is that legacy systems could be holding your business back.
Story image
Businesses unprepared to defend against ransomware attacks
Ransomware attacks continue to impact organisations worldwide with high costs, but businesses are still largely unprepared.
Discover the 5 ways your ERP may be letting you down. Is your current system outdated, difficult to manage, and costing you a fortune?
Link image
Story image
Voice recognition
Renesas and Cyberon expand services with voice recognition
“We are honoured to collaborate with Renesas to simplify the development of embedded voice recognition functions."
Story image
Progress launches latest version of network visibility solution
In Flowmon 12 network solution, Progress has expanded its support for public cloud provider flow log monitoring and launched new features.
PwC's Consulting Business and PwC's Indigenous Consulting are proud to play an important role in helping Australian Indigenous Mentoring Experience build IMAGI-NATION, a free online university for marginalised communities around the world.
Link image
Story image
NEC expands Open RAN ecosystem with Aspire Tech acquisition
With its agreement to acquire Aspire Technology, NEC Corporation has further increased its capacity to deliver End-to-End Open RAN ecosystems.
Story image
Industry-first comprehensive risk-based API security enhances protection
Application Programming Interfaces (APIs) have become a crucial part of operating web and mobile application businesses and are causing significant economic growth in the digital sector.
Story image
SentinelOne integrates with Torq to empower security teams
"With Torq, security teams can extend the power of SentinelOne to systems across the organisation to benefit from a proactive security posture.”
WSLHD and PwC’s Consulting Business came together to solve through the challenges of COVID-19. A model of care was developed to the NSW Health Agency for Clinical Innovation guidelines with new technology platforms and an entirely new workforce.
Link image
Story image
Artificial Intelligence
Accenture shares the benefits of supply chain visibility
It's clear that gaining better visibility into the supply chain will help organisations avoid excess costs, inefficiencies, and complexity to ultimately improve their bottom line.
Story image
New study reveals 51% of employees using unauthorised apps
The research shows that 92% of employees and managers in large enterprises want full control over applications, but they don't have it.
Story image
Without trust, your security team is dead in the water
The rise of cyberattacks has increased the need for sound security that works across any type of business, but with any change, buy-in is essential. Airwallex explains why.
Story image
What brands can expect from Amazon Prime Day in Australia
Amazon Prime Day is the annual two-day shopping event, kicking off this year from July 12-13 and is the global online shopping platform's biggest sales event.