Rewarding Member Loyalty: Effective schemes that encourage retention

26 November 2018 openplay Leave a comment Booking System, Memberships, Technology

From British Airways to Benugo, companies large and small are incentivising their customers with rewards. When it comes to exercising and staying on track, humans often need an extra little nudge.

You might be inclined to cut back on rewards when finances are tight, but customer loyalty programmes pay for themselves and then some. Rewarding member loyalty is, in fact, a carefully constructed marketing ploy- upselling in disguise.

An effective loyalty programme will increase member activity, improve customer experience, and increase revenue for your business.

Opt for a points-based system

One of the most popular choices is a points-based system. Customers recognise this model from coffee chains and supermarkets, so they find it easy to understand. Points accumulate each time a customer attends the gym, takes a class, or executes a faultless burpee (we’re working on the tech for that one).

Small rewards should be reachable within a week of consistent training. More substantial rewards need to be attainable within a three-month period for clients to find them worthwhile.

Types of rewards

The value of the prizes you offer needs to be carefully balanced with your own goals. When the scales are level, both you and your customer will benefit.

Offer rewards on a sliding scale. Small prizes could include free hot drinks, smoothies, advance booking, a hand towel or gym lock. At the higher end of the spectrum are free classes or a PT session.

The trick is to merge rewards with services or products you are hoping to promote.

Big awards for referrals

A real sign of loyalty is when a member brings in a new customer. A member referral could bring in hundreds of pounds to your health club, so members should be rewarded highly, perhaps with a free class of their choice or a significant discount from a month of their fee.

The equivalent of £30-£50 is a reasonable premium for referrals.

Integrate rewards with your CRM system

To make this a win-win model, integrate your loyalty programme with your Customer Relationship Management (CRM) technology.

A CRM system keeps track of your customers’ interactions with your business, so you can observe their activity levels and, more importantly, the aspects of your business they do not yet take advantage of. You might choose to offer rewards that encourage clients to greater experience your service.

For example, someone who is a Hiit fanatic could be awarded a free holistic class. Someone whose attendance has slipped could be offered a free PT session, to reinvigorate their interest and decrease the likelihood of them abandoning the club.

To find out more about how CRM systems work check out this article… CRM- A complete guide

Enhance the experience

Companies that truly understand customer loyalty take their strategy a step further and create a more convenient experience. Often this is done through the development of an app.

Many airlines provide apps that allow customers to check in online and bypass airport queues. The Wetherspoons app lets people order drinks from their table, meaning they are relieved from elbow bashing at the bar. A customer’s activity is tracked through the app, meaning further rewards can be dished out directly to their phone.

When businesses solve client problems and alleviate pain points, customer loyalty rises.

Re-evaluate and evolve

Any new strategy will take time before it is beneficial. Your system will require lots of remodelling as you get to grips with the desires of your customers. You can measure the success of your loyalty programme by monitoring member retention and satisfaction.

Tags: , , , ,

Like this article? there’s more where that came from.