Knowing Your Customer and Creating Product Loyalty
Understanding your product and getting to know your Customer is one of the fundamentals of establishing Product Loyalty. By answering these 6 questions, you can gain insights about your customers.
How to create product loyalty
What need and want does the product address?
The answer to this question will highlight your Unique Selling Point. Your product should address a clear ‘need’ and ‘want’. For example, if you are a Coffee shop, then your customer ‘needs’ is to be refreshed by ‘want’-ing a beverage. Businesses can create opportunities to up-sell or cross-sell by identifying a customers’ these needs and wants.
How much will the customer pay for it?
Identifying the right price point is crucial. A customers’ expectation and experience, is directly related to price. For example, a customer might ‘need’ to feel successful by expecting a gourmet experience (Want) if they pay 50€ for a meal. If the meal isn’t special, then the difference between expected experience with the price paid and actual experience will definitely result in a damaged Product Loyalty.
What rewards will make the customer loyal?
Rewards exist in many forms such as stamps, credit back, gift cards etc. Offering Stamps (Collect 5 stamps, get a free Burger) is a great tool to gamify customer experience. Credit back works best with customers looking for instant gratification through rewards.
How will customers express their Loyalty to your Business?
Giving customers a platform to express their Loyalty is often underestimated. Giving a Loyalty Card or having a Loyalty based mobile app for customers is a great way to acknowledge your customers loyalty. Having a mechanism for customers to track, collect and redeem Loyalty points, serves as a useful tool for repeat business.
Which Loyalty system is the best fit for me?
Your decision to select a Loyalty Partner is extremely important as this Partner will now be facing your customers through their design and app experience. (INSERT EXAMPLE OF GREAT LOYLAP DESIGN AND APP SCREENSHOTS)
Can I offer Product based Loyalty?
If you answered all the previous questions and understood the benefits of Product Loyalty, then this step is for you. Once you are few steps into your Loyalty Programme, you will soon realise that offering different loyalty rewards for different products can be instrumental in saving costs. Customers can get stamps for purchasing a 4€ item and after their fifth purchase they might redeem at 6€ item. This can be avoided by using apps that have Loyalty by Product features. Also, its a great tool for implementing marketing campaigns. For example “25% off on all Pastries”.