Loyalty Programs Mens Grooming: Best Practices
Making loyalty programs that are easy to both join and use, offering loyalty programs in a variety of channels, and increasing customer engagement through gamification are some of the best practices for loyalty programs at men's grooming companies.
- According to a Forbes article, customer loyalty programs can be a crucial element in attracting new customers and retaining existing ones.
- However, how the program is created also goes a long way to boost customer loyalty.
- According to MarketingPofs, US household belongs to around 30 loyalty programs on average, with only 14 of such programs being active.
- A recent study by Capgemini shows that many loyalty programs today are failing. 53% of consumers surveyed said the abandoned at least one loyalty program within the previous year.
- The study revealed consumers abandon loyalty programs because; they lack reward relevance, flexibility, and value (44%); lack of a seamless, multichannel experience (33%); and customer service issues (17%).
- Another study by Accenture showed that 71% of people claim modern loyalty programs do not create loyalty.
BEST PRACTICES FOR LOYALTY PROGRAMS
- Since loyalty programs are still one of the best ways for marketers to reward current customers and keep them interested in a brand and its products, the following are some of the best practices that men's grooming companies can employ in their loyalty programs.
1. MAKE THE PROGRAM EASY TO JOIN AND USE
- The best loyalty programs should be easy for both the customers joining and for the employees signing them up.
- If a program is complicated, takes too long, or asks for too much information, e.g., if it requires customers to input codes, or show coupons each time they check out, customers will bail.
- When making a loyalty program, men's grooming companies should also make it easy for their customers to earn and redeem the points/rewards they collect.
- Sallie Burnett, a loyalty consultant with 25 years of customer loyalty experience, appeals to companies to allow their customers to earn rewards not just for making purchases, but also through other types of interactions. She also suggests that they offer them many reward varieties and provide regular progress updates.
- Brickell Men's Products, which offers luxury men's skincare and grooming products using natural & organic ingredients, is an example of men grooming companies with an easy to join, use, and redeem loyalty program. After signing up on this program, the individual immediately gets 100 points. Every dollar spent equals 1 point, and for every 200 points redeemed, there is a $10 discount attached.
2. OFFER THE LOYALTY PROGRAMS IN A VARIETY OF CHANNELS
- Burnett further said that an effective loyalty program should offer the users a variety of channels to allow them to select the method of communication that is most comfortable for them. (Source 1)
- Men's grooming companies can improve customer loyalty by utilizing email, social media, apps, mailings, and in-store signage, among other methods, to keep them informed.
- According to a Bond Loyalty study of brand loyalty programs, 57% of consumers prefer interacting with a customer loyalty program through a mobile device.
- Therefore, the companies should lean towards channels that can easily be accessible by phone.
- In addition to providing a variety of channels, it is also the best practice for men's grooming companies to speak their customers' language, probably by adding emojis in their communication to make their brands more relatable. The tone of voice is also essential.
- Dollar Shave Club is an example of men's grooming companies that use a variety of channels to communicate with its customers as well as offer loyalty programs.
- The company uses different channels to ensure that Dollar Shave Club members receive communications that explain how to make the most of the service and get access to benefits like an on-call grooming concierge.
- By offering loyalty programs in a variety of channels, Dollar Shave Club has been able to build trust and inspire loyalty (it has more than 3 million repeat customers), as well as to differentiate its brand from other shaving and skincare options.
3. INCREASE CUSTOMER ENGAGEMENT THROUGH GAMIFICATION
- One of the ways that retailers are using to differentiate their programs and engage with customers between purchases is through gamification.
- Gamification takes the traditional loyalty program practice of collecting points to earn rewards while placing a fun, social spin on it.
- Through gamification, companies offer consumers the opportunity to progress toward a goal with more milestones, such as badges or levels, to show progress along the way.
- Not only does gamification increase customer participation and loyalty, but it can also increase the number of customers since consumers can use hashtags on social media to share their experiences and encourage friends to participate.
- Nike is an example of companies using gamification in their loyalty programs. Recently, Nike created a game for its members, which allows them to go on a virtual treasure hunt to find new shoe designs.
- Nike realized that loyalty programs are much more than collecting points for purchases. It is thus driving engagement and repeat purchases by using gamification to transform simple shoe shopping into something that resembles a sport.