Long-Term Romance: 10 Ways to Lure Customers to Your Loyalty Program

Loyalty programs can be your key to high conversion rates. People like to be appreciated for their patronage – especially if you offer them something special first-time or infrequent customers don't get. Following are some simple strategies for turning a one-time customer into a habitual and happy loyalty program spender:

1) Make it easy for them: Structure your program to make joining as simple as possible. Design it so that all of your customers can participate at some level.

2) Make it easy for you: Choose vendors who are flexible and don't just offer technical expertise but also support, so that the ball is never dropped.

3) Add real value to your loyalty program: Consider your costs and ROI, and focus on what's valuable to your customer.

4) Personalize: It costs almost nothing to call your customers by name, but it makes them feel special. It also helps create the impression that your message was expressly intended for the reader.

5) Show them you're paying attention: Turn the data you receive about your customers' interests and preferences into value for them.

6) Get it in front of them: Promote your loyalty program at every customer touch point -- call center, website, etc.

7) Make your loyalty program viral: People like to pass valuable and exciting opportunities on to their friends, so make it easy for your customers to get others to join your loyalty program.

8) Tie your PMS into your loyalty program: Work your unsold inventory into your customer rewards, so that you move that merchandise quickly and effectively.

9) Reward your customers for planning ahead: Check your past history to see what inventory sells slowly or usually needs to be moved, and promote this to customers far in advance at a great rate.

10) Bring effective partnerships into the equation: Sell mini and combination packages that make it easy for customers to purchase not just your merchandise, but complimentary products and services, too.

by Steve Webster, Chief Strategy Officer and founder, iPost