25 WAYS TO ACQUIRE

LOYALTY PROGRAM CUSTOMERS

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INTRODUCTION

Drawing in new loyalty program members has become more challenging in an age when consumers demand more from brands and have multiple channels competing for their attention. That’s why it’s crucial to get strategic about loyalty program acquisition.

It’s important that you leverage the power of technology and use every touchpoint at your disposal to increase your loyalty marketing customer base and achieve key objectives. This e-book offers 25 strategies to help you acquire new loyalty program members and grow your business.

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As all brands with a loyalty initiative know, acquiring new rewards program members is important to help your business grow. While 70% of companies say it’s cheaper to retain a customer than acquire one, brands remain focused on acquisition as a core marketing initiative.1 Over time, customers may lose interest in a program or find a more appealing competitor, so acquisition plays a critical role in forging good relationships with your brand.

Since loyalty acquisition offers target the masses, they are more generic, but far richer than retention offers to existing program members. Loyalty program acquisition helps brands not only generate interest, but grow their revenue. After all, once customers are enrolled in a loyalty program, the relationships between brands and customers extend beyond the store walls. You have a direct line of communication with customers, and your customers have many incentives to keep returning to your brand.

1. 70% of companies say it’s cheaper to retain a customer than acquire one, Our Social Times, Sept. 3, 2013

Loyalty Acquistion Offers vs. Retention Offers

44% The number of companies that have a greater focus on acquisition

18%

The number of companies that have a greater focus on retention

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If you are looking to acquire new customers for your loyalty program, consider tying your loyalty offering to a marketing event. This tactic gives you a great opportunity to transform your program from something ordinary to something exciting and fresh that will motivate people to participate.

For example, Dunkin’ Donuts linked its DD Perks loyalty program to a new product launch to increase awareness about the program and its latest menu item. The coffee chain organized a special event and invited 12 DD Perks program members from various markets to taste the new Croissant Donut and awarded them with $500 Dunkin’ Donuts gift cards. At each tasting, Dunkin’ Donuts offered the first 500 customers free samples. Separately, the brand kicked off a Croissant Donut sampling tour in the Northeast and promoted the DD Perks program. The event not only built buzz around the new item, but it also generated awareness and interest in DD Perks.

1.MARKETINGCAMPAIGN

While mass advertising can be effective, consumers require frequent reminders and touchpoints about your loyalty program to stay top of mind. It’s critical to use all of your assets—including your website, product pages, and checkout process—to inform consumers about your program and the benefits of doing so. Consumers need constant prompting and must see the value in offering their email address or other personal information in exchange for registering for your loyalty program.

2.BROWSINGEXPERIENCE

Timberland includes teaser text next to its products and pricing details showing shoppers just how many loyalty points they would earn if they buy the item and belong to the program. In the example below, the text reads, “Purchasing this item will earn you 149 reward points (Reward Value $7.45!).” By demonstrating the value prop of your loyalty program during the browsing phase, you could win a sale and gain a new loyalty program member at the same time.

Another important tactic to acquire loyalty program members is to make use of your checkout page. This strategy reminds shoppers that they could earn points if they aren’t currently enrolled in your program. Using the checkout page to remind customers about your loyalty offering is a great way to prompt sign ups because

3.CHECKOUTPROCESS

25 LOYALTY PROGRAM ACQUISITION STRATEGIES Below are 25 strategies you can implement to spread the word about your loyalty offering and encourage new customers to join.

above: Dunkin’ Donuts linked its DD Perks program to a new product launch to ignite excitement.

below: Timberland demonstrates the value of its loyalty program in its browsing experience to entice sign-ups.

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When participating in a loyalty program, Word-of-Mouth marketing can do wonders to help with your loyalty program acquisition efforts. By tapping into existing program members, you can leverage brand advocates to spread the word about your initiative and reward them for their efforts. After all, 92 percent of people trust recommendations from friends and family more than all other forms of marketing.2 It’s crucial to not only offer members a nice incentive, but motivate new customers to join with an incentive of their own.

Julep, a subscription beauty brand, entices customers to refer friends to join its Maven loyalty program via email, Facebook, Twitter, or their own personal link. Julep sends a $15 reward code redeemable on julep.com to current members each time their referral joins the program.

4. REFERRALS

Sometimes, you need to go back to the basics to encourage loyalty program acquisition. To boost your acquisition efforts, there’s nothing like an enticing sweepstakes to spur excitement and drive membership.

5. SWEEPSTAKES Pepsi, for example, launched an

exclusive sweepstakes to prompt buzz around its mobile loyalty app, Pepsi Pass, and to encourage program sign ups. The sweepstakes, which was just for members, prompted users to enter for a chance to win a six-pack of Crystal Pepsi—clear soda that has not been released

Some companies have the ability to get creative when it comes to their loyalty program acquisition efforts. If you are a brand with products in the gaming, electronics, and entertainment industries, you may have the opportunity to incorporate your loyalty program acquisition efforts into your products or customer experience. By seamlessly integrating advertising into a brand experience or within your products, you can capture consumers’ interest and drive program membership.

Ubisoft leverages its popular video game “Assassin’s Creed Syndicate” to entice new members to sign up for its Join the Family loyalty program—an initiative dedicated to the game. As part of the in-game main menu options, Ubisoft provides players with the option to earn exclusive and free in-game rewards by registering for the loyalty program.

6.IN-PRODUCT ADVERTISING

they have already made a decision to make a purchase. The opportunity to earn rewards at that stage will likely persuade customers to register.

The Bike & Tri Shop uses this strategy to capture shoppers that may be missing out on its loyalty program. The brand integrates messaging about its loyalty program as part of its checkout process. This helps The Bike & Tri Shop identify known customers and simplify the checkout experience, as well as urge prospective members to join.

since the early 1990s . Pepsi brought back the limited edition soda as a sweepstakes prize, only awarding 13,000 people the chance to win. This prompted non-members to register for Pepsi Pass and earn their shot to win the six-pack.

above: The Bike & Tri Shop incorporates messaging as part of its checkout page to acquire new loyalty program

below: Julep offers a cash incentive for referrals to encourage loyalty program acquisition.

2. Global Trust in Advertising and Brand Messages, Nielsen, April 10, 2012

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While store signage is a great acquisition tool during the shopping phase, some consumers may not want to register for your loyalty program on the spot. That’s why you may want to use a printed store receipt or a digital receipt to promote your programs as a takeaway.

7.STORE RECEIPT/DIGITAL RECIEPTS

Some brands, like Consumer Packaged Goods (CPG) companies, don’t have the luxury of storefronts to promote their loyalty programs. But they have the next best thing—their packaging. If you have suitable products, you can use packaging as a promotional vehicle to inform customers about your loyalty program and drive acquisition.

Starbucks, for example, takes this approach with its My Starbucks Rewards loyalty program. By printing select products with the program logo and specific calls-to-action, Starbucks extends it reach by capturing interest on its packaging and drives consumers to its registration page to learn more.

8. ONPACKAGING

Consumers often save their receipts, so they are more likely to take notice and give your loyalty program messaging a second glance.

Staples takes this approach and uses printed store receipts to remind customers about its loyalty program. The brand includes details about the program—earning up to five percent back in rewards, free shipping online, and ink recycling rewards—and a link to its website on the receipt.

In an effort to appeal to a wide audience when promoting a loyalty program, some companies use TV advertising to do it. Making a big splash with mass media can be effective if you have a good story, the resources, and the budget to do so.

9.TV ADS Bank of America created a TV spot with rocker Billy Idol promoting its “Preferred Rewards” program. The commercials targeted Bank of America clients who have at least $20,000 in checking, savings, or investment accounts. Star power from a celebrity can do wonders to help you gain consumers’ attention.

above: Staples uses its store receipts as part of its loyalty program acquisition efforts.

left: Starbucks uses its packaging to remind customers about its loyalty program.

below: Bank of America gets star power from Billy Idol in a TV spot to promote its Preferred Rewards program and drive acquisition.

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Credit cards have been a fundamental component of retail loyalty programs for years. They are an effective way to reward customers and to help retailers obtain a 360-degree view of their customers and their shopping activity. When consumers carry a card that showcases their favorite brand, it signals their affinity for that company. It also reinforces their relationship with the brand. By linking specific offers to private label credit cards, retailers can drive purchases and open the door to encourage sign ups for its separate loyalty program.

10.PRIVATE LABEL CREDIT CARD

Retailer American Eagle Outfitters offers a private label credit card that motivates shoppers to open an account by offering an exclusive discount. AEO uses the data it receives from credit card holders to understand their buying behavior and offer relevant messages and up-sells, including communications to join its loyalty program if shoppers are already not enrolled. Creating interest around private label credit cards helps you find new customers and create a two-way conversion to augment your loyalty program acquisition efforts.

To reach consumers, it’s essential that you fully explain your loyalty program on your website. Customers want to understand how a program works, what they will earn for their activity and spend, and the ways in which they can redeem their loyalty points. By developing an explainer pager about your program, you can visually illustrate its value and all the ways consumers can benefit from your initiative.

Ulta, for example, dedicates a full page explaining its Ultamate Rewards program. Consumers visit the page by navigating to the rewards section of the website. The page shows consumers a variety of way that they can earn points, including receiving a free birthday gift, double and triple points for email registration, and product redemption benefits. The page also features a direct link to the program registration page.

11. WEBSITEEXPLAINER

One of the best places to register customers for your loyalty program is directly at the Point of Sale (POS). This is the stage when customers are ready to make a purchase and are already engaged with your brand. It’s important to reduce the complexity of the registration process to maximize your enrollment, especially at the POS.

12. POINTOF SALE

Walgreens makes registration a breeze by allowing customers to join its Balance Rewards loyalty program at the register. In addition to providing registration options online and via a mobile app, the brand allows customers to enroll in its program at checkout. Customers simply provide their name, date

of birth, ZIP code, and their phone number to enroll. By providing an easy enrollment option when customers are in the buying mode, you can drive your loyalty program acquisition and demonstrate value to your customers.

above: American Eagle Outfitters leverages its credit card program as an initial step to acquire loyalty program members.

below: Ulta spells out the benefits of joining its loyalty program on a dedicated explainer page.

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Traditional marketing tactics remain an effective way to acquire new loyalty program members. If you have a storefront, you have the perfect opportunity to remind customers about your program before they get to the Point of Sale (POS). Offline approaches, such as in-store signage and tablet tents, often cause customers to take notice.

Denny’s, a casual dining restaurant chain, promotes its Diner Perks loyalty program tableside using in-store signage. This vehicle informs consumers about the program without the use of an overt sales pitch that some may find intrusive.

13. IN-STORESIGNAGE

When acquiring new loyalty program members, one of the best marketing assets you can use is your staff. Since this group interacts with customers on a daily basis, it’s essential that you leverage its power and reach. When communicating with customers about the program, sales associates must be informed about the benefits, details about how the offering works, and be armed with answers to frequently asked questions.

14. SALESPEOPLE

Kohl’s, for example, has sales associates ask customers if they belong to its Yes2You Rewards program by interacting with shoppers on store floors and inquiring at checkout. This face-to-face opportunity adds the vital human element for Kohl’s associates to connect with customers and drive loyalty program acquisition. It also gives customers a chance to ask questions and learn more about the program from a knowledgeable resource.

Beyond your in-store staff, your customer service department is another useful vehicle that can aid your loyalty program acquisition efforts. It’s all about the service. If you properly train your call center agents, you can prompt them to acquire the right information from customers at the right time. By focusing on

15. CALL CENTER building a relationship with customers

and offering personal service, you can enhance the customer-brand relationship and create a mechanism to acquire more loyalty program members.

Holiday Inn for example, uses its call center agents to acquire new members of its IHG Rewards Club when patrons book a reservation. Similar to using staff in a retail location, this strategy

forges more of a personal connection between customers and your brand. Customers can learn more about the program from a great source and quickly register for the program without having to do any legwork on their own.

left: Denny’s uses in-restaurant signage to tout the benefits of its loyalty program to encourage acquisition.

below: Kohl’s keeps its loyalty program top of mind by asking shoppers to join the program.

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Typically, customers have taken the time to subscribe to your email list to receive the latest brand news or next new promotion. The next step is to persuade subscribers to join your loyalty program. Brands often use email as a marketing vehicle to do just that. When using email, it’s important to communicate the value proposition to customers in a clear and concise manner.

Foot Locker spells out the benefits of joining its VIP loyalty program in its emails. The email outlines the program features and highlights its tiering structure for those customers that spend more with the brand.

16. EMAIL

In this multichannel world, incorporating social media into your loyalty program acquisition marketing plans is a must. Smart brands are recognizing the important role that social media can play in acquisition. By promoting your program on your customers’ favorite social channels, you can increase your reach and presence, as well as create conversations with consumers to encourage participation.

Ultimate Fighting Championship (UFC) occasionally uses its Twitter account to encourage loyalty program participation. The brand quickly communicates the benefits and includes a call-to-action to join. By using a channel often frequented by fans, you can find new audiences (and customers) to join your loyalty program.

17. SOCIALMEDIA

right: Foot Locker sends emails to subscribers to find new loyalty program customers.

below: Ultimate Fighting Championship (UFC) takes to social media to acquire new loyalty program members.

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When a customer makes a purchase, you have their attention. That’s the ideal time to followup with information about your loyalty program. If the customer placed an online order or shopped from your brick-and-mortar store, you can include an in-insert or a bounce back offer inviting that person to join your loyalty program. Packaging inserts can be a cost-effective way to build a relationship with consumers. By including an insert or messaging about your program into a bag or box, recipients will feel important and give your program new consideration, especially when paired with a nice offer.

18.IN-PACK/OFFER BOUNCE

Companies have blogs for many different reasons. Beyond just serving as an avenue to feature the latest products and services, a blog acts as an important vehicle to promote your loyalty program and encourage registration. A blog gives you the freedom to “talk up” your loyalty program and really demonstrate the value customers can glean from joining and participating.

19.BLOGPOSTS

If you have a clean database and are a little more sophisticated with your marketing efforts, you can conduct outbound calls to generate interest in your loyalty program. Isolate your best customers and put them in a queue for outbound calls. This personal touch could make a difference in your acquisition goals. Due to the expense of this effort, this approach should usually be limited to your best or highest value customers.

20.CALL CENTER

These models act as snapshots of existing customers that are used to statistically identify and predict which consumers are more likely to share like interests, behaviors, or characteristics. By targeting consumers that share similar behaviors of current loyalty program members, you can introduce consumers to your loyalty program and boost your membership.

21.LOOK-A-LIKE ANALYSIS AND INVITATION

It is essential to use different forms of media to spread the word about your loyalty program. Just like TV commercials, radio ads remain an effective form of advertising. With the right message and cadence, you capture attention and persuade new customers to join your program.

There’s nothing like a little old fashioned public relations to help your brand get its loyalty program noticed. Make sure that you announce your program launch and any changes in your program to relevant consumer media. Create a marketing stunt or a press release to stand out and get noticed by the media. The more hype you create around your program, the more consumers will take notice.

23. PUBLICRELATIONS

22.RADIO

Another effective way to acquire new loyalty program members is to use your database and the power of text messaging. Those customers that have opted to receive your text messages are prime candidates to receive discounts and details about special sales, as well as messaging about joining your loyalty program. After all, text messages are opened in a span of five seconds once received and they get responses within three minutes.3 In the text, it’s crucial to highlight how customers can earn points and rewards, and how to register.

24. MOBILEMESSAGING

No matter which strategies you use for your loyalty program, it’s imperative that you track and analyze your biggest sources of loyalty program acquisition. Understand which tactics result in your brand receiving the most members. Take the insight and focus your energy and budget on repeating that performance to keep your program top of mind.

25.PERFORMANCEREPORTING

BONUS LOYALTY PROGRAM

AQUISITION IDEAS While the tried and true approaches to loyalty

program acquisition mentioned on the previous pages work, sometimes it’s worth thinking outside of the box. Here are a few more loyalty program acquisition ideas that can help your brand stand

out from the pack.

3. Mobile First Means What? It Means SMS First, Of Course., Communities Dominate Brands, June 20, 2015

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CONCLUSION

When it comes to loyalty program acquisition, there’s no silver bullet that will lead you to immediate success. It’s essential to test different tactics to see what works best for your needs. Regardless of what products or services you sell or what industry you are in, it’s worthy to use a combination of the strategies outlined in this e-book and optimize all marketing channels to reach your end goal.

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