Loyalty programs, if executed correctly, have the power to elevate customer experience and drive customer lifetime value.
Rewarding frequent shoppers with points is a great start, but a good loyalty program should provide more than just access to coupons and freebies. Delivering amazing experiences is the best way to get first-time shoppers to stick around.
Fully 83% of customers say a loyalty programs makes them more likely to continue doing business with a company, according to brand loyalty firm Bond.
For delivering loyalty program content, email is a highly effective channel for brands in retail, travel, financial services, and other verticals to generate member renewals, reinstate lapsed members, and increase overall customer retention.
Here are five tips for creating loyalty program emails with content that will build lasting customer relationships and even encourage customers to spread the word to family and friends.
1. Tell a story with relationship history
People love a good story, and marketers know that storytelling is essential to building brand. But is the story you're telling in your loyalty program emails all about you—or is it focused on your customers?
There are many ways, beyond the standard loyalty points summary, to focus on your customers in your loyalty emails. Incorporating a personalized relationship history can remind your customers how they came to love your brand in the first place.
For example, a retailer could send customers an email with a detailed purchase history that starts with his or her very first purchase, recommendations based on favorite items purchased, and other personalized data to provide a narrative around her loyalty program awards.
Another fun and engaging option is a "Year in Review" email. A streaming music service might show subscribers their favorite artists and songs, most-played tracks, and music they can discover based on their listening habits.
Whatever story you tell, make it easy to share by incorporating deep links to all the most popular social platforms. The result is a viral email that uses customer data to tell a personalized, compelling story.
2. Provide accurate and up-to-the-minute loyalty program account data
Nearly three in four people (72%) prefer to receive brand content through email, according to MarketingSherpa. In the past, however, email hasn't been the most effective channel for providing up-to-date loyalty point information.
That's because of the challenges marketers face in accessing consumer data, which is often spread across numerous databases; moreover, automatically pulling that data into emails in real-time was once not easy. As a result, customers that open—or reopen—an email to look for loyalty status data are often left confused and frustrated trying to figure out their current balance.
However, by using API-driven account data, a bank for example can ensure that up-to-the minute credit card rewards information is automatically pulled into an email at the moment it's first opened. Each time it's subsequently reopened, the data is refreshed so card holders have an accurate balance and can make more informed decisions.
3. Keep your loyalty program emails simple with easy point redemption
Complicated rules and difficulty redeeming points can often be the downfall of any loyalty program. So, keeping it simple is important. In fact, according to a study by Colloquy, the No. 1 reason consumers give for continuing to participate in a loyalty program is that it's easy to understand.