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Create a loyalty program that excites and surprises

It is becoming increasingly difficult to hold on to existing customers while attracting new ones. In a good loyalty program, the customer feels recognized and valued. Remember that loyalty programs are only successful if your members get benefits they value. 

Excite by:
  • Reward your loyal customers.
  • Make your strengths visible in direct dialogue with customers.
  • Understand what your customers would like to get or what they appreciate.
  • Make sure you use the loyalty program to help you get selected more often.
  • Increase the exchange cost for customers. Makes it difficult for the customer to choose a competitor.

 

Surprise by:
  • Communicate directly to your customers based on what you know about the customer.
  • Create a relevant dialogue based on insights, in particular their interests and purchase data.
  • Give your loyal customers a great deal, or tell them what they can achieve through the loyalty program.
  • Communicate with your best customers – find out why the customer buys from you and what it takes for them to buy more.

 

All employees must be involved in the customer program to ensure success. A tip from us is to create a template for employees on how customers should be onboarded into the customer program. We are happy to help if you have questions on how to make the most out of your loyalty program!

 

Bonus point systems – pros and cons

When starting a loyalty program, it is important to think about the type of benefits you should have. Welcome and birthday coupon deal with what we call the onboarding program. This is where you recruit new members. The benefits program, on the other hand, will help make your customers / members even more loyal to your particular store / chain. There are many paths to success here. In this article, we give some examples of how this can be done, with some of the advantages and disadvantages with the various alternatives.

1. Standard bonus ladder: Bronze – Silver – Gold
 2. Bonus ladder with various membership benefits
 3. Point level coupons
 4. Coupons without the use of points
 5. Loyalty card

1. Standard Bonus Ladder – Bronze – Silver – Gold

The standard bonus ladder is inspired by the aviation and hotel industry; you get different discount levels / benefits as you climb the ladder. For example: Bronze – 5% discount, Silver – 10% discount, Gold – 15% discount. Qualification period and point life can be asynchronous, but most programs keep them equal in 1, 2 or 3 years duration. A member must within each qualifying period earn the necessary points to achieve the same status. You must decide whether the member will receive the discount with each purchase, once, or if they should receive X number of coupons within each level.

BENEFITS

  • A familiar system to most people.
  • Generally easy to understand for members.
  • You can still provide other additional coupons for all members during given promotion periods.
  • Fully integrated with all checkout systems.
  • Fully integrated with WooCommerce.

 

DISADVANTAGES

  • May limit the most-buying customers.
  • Coupon duration – if you reach the next bonus  level the day before the qualifying period is over, you go down again the next day.
  • Customers will not be notified when they have reached a new level (SMS).

 

2. Bonus ladder with various membership benefits

This variant is quite similar to the bronze, silver and gold levels, but with different names. This model is most often used by online stores to provide a good customer experience.

BENEFITS

  • Generally easy to understand for members.
  • You can still provide other additional coupons for all members during given promotion periods.
  • Gives customers a sense of an exciting bonus program with various benefits when they are loyal.
  • Fully integrated with all checkout systems.
  • Fully integrated with WooCommerce.

 

DISADVANTAGES

  • May limit the most-buying customers.
  • Coupon duration – if you reach the next bonus  level the day before the qualifying period is over, you go down again the next day.
  • Customers will not be notified when they have reached a new level (SMS).

 

3. Point level coupons

This means that for every X Euro spent, you get a voucher or percentage discount on your next purchase. For example, for every Euro 2,00 spent, you will receive a Euro 10 discount. If you earn many points, you will be given the choice of using a Euro 10 discount (200 points), Euro 20 discount (400 points), Euro 30 discount (600 points) or NOK 40 discount (800 points). You can easily choose at checkout which coupon to use.

BENEFITS

  • Very easy for customers to understand.
  • Generates loyal customers quickly – purchases directly provide future discounts.
  • Easy for employees to explain / sell to their customers.
  • Continues indefinitely.
  • Can also create their own coupons / promotions for periods.
  • Fully integrated with all checkout systems.
  • Fully integrated with WooCommerce.

 

DISADVANTAGES

  • Can only have one recurring coupon.
  • Can only have the same benefit in the loyalty program (excluding own coupons / promotions).
  • Customers will not be notified when they have received a new coupon (SMS).

 

4. Coupons without the use of points

For instance when having a sale, you can create a separate campaign that is sent by SMS to everyone or a segmented group of members.You will get valuable statistics on who uses the coupon (s). Even if you have a sale that applies to all members, it can be an advantage to enter a coupon that is registered on the member at the time of purchase. Then you will build up history on your members, what they shop for, how often, if they only shop for sales, etc.

BENEFITS

  • Valuable statistics providing the purchase patterns of your members. It allows you to run an even more relevant campaign next time, and it increases loyalty as you get more and more relevant to your customers.
  • You can set up coupons / promotions ahead of time, which will be activated automatically at the set time.
  • SMSes can similarly be set up in advance and sent out at the set time.
  • Fully integrated with all checkout systems.
  • Fully integrated with WooCommerce.

 

DISADVANTAGES

  • Must make a coupon in Diller that pops up in the online store or at checkout. However, this is done very quickly, so we would probably say that the advantages clearly outweigh this small disadvantage.

 

5. Loyalty card

Most people are used to the old paper loyalty cards. For example, for pet store, coffee shop, or for filling gas bottles. You can get a digital loyalty card right at the checkout, and the member can follow their status via their member page.

BENEFITS

  • Digital loyalty cards do not require members to remember paper cards – only a mobile number.
  • If you do not have a bonus point model, you may use loyalty cards instead. For example, for every tenth clip (one clip for every Euro 25) you get a Euro 15 discount. This corresponds to a Euro 15 discount for every Euro 250 bought on a recurring coupon.
  • You can receive reports per month for the number of clips used per loyalty card.

 

DISADVANTAGES

  • Not fully integrated with all checkout systems.
  • Not fully integrated with WooCommerce (can display status, but not used in online store).

 

If you have any questions about how to build the best possible benefit program for your particular company, just contact us. We can meet by phone, e-mail or chat. We are here to help! Get in touch

Frequently Asked Questions

In this article you can find some of the most frequently asked questions from our customers.

Find answers to questions like:
  • How do I create segments ?
  • How do I create coupons ?
  • How do I create campaigns ?
  • How do I send SMSes to my customers?
  • How do I create a bonus points system?
  • What is the difference between total points and earned points?
  • How does the customer’s membership portal work?
  • How do I find the customer’s transaction log?
  • How do I integrate Diller® with my online store?

… and much more.

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How to communicate with members

When, how often and what channel to use for member communication? Here are some simple tips.

SMS
  • Use SMS to communicate directly to your customers, with a message based on their interests or preferences.
  • You will their preferences set up in Diller® as both segments and lists, so that you can make sure to always send relevant communication to your various customers. Do not spam your customers with many offers they are not interested in.
  • Be sure to send relevant offers or messages via SMS.
  • In this article you will learn how to send a SMS in Diller.
90% of all SMSes are read within 3 minutes
98% of all SMSes are opened
Surveys show that SMS has a 209% higher response rate than e-mail or Facebook messages (Link Mobility)
How to send SMS:

Email
  • Use email to send information or news across segments, or to multiple segments at once.
  • Email is an affordable and effective way to communicate with all your customers.
  • Unfortunately, most emails in this category are not read, but you can have a high frequency without necessarily losing members.

How to succeed with SMS campaigns

SMS marketing is highly effective. According to Link Mobility, 90% of all SMSes are read within 3 minutes, 98% of all SMSes are opened, and SMS has a 209% higher response rate than emails or Facebook messages. In other words, hardly anyone leaves an SMS unread.

SMS is a simple form of communication with your members, and it is quick to learn how to set up and send campaigns in Diller®. Below are some tips and tricks for success.

What is better – SMS campaigns to all members or to targeted groups?

SMS works great for selected segments of your membership base. It can be an advantage – and also financially smart – to send SMS to selected groups with customized messages. As a rule, targeted and personal communication based on members’ preferences and purchasing patterns is more effective than generic SMSes sent to everyone.

The better the adaptation to a member’s interests and preferences, the better the response you will get. For example, a member of a gardening club that has a balcony, but not his own garden, will respond better to information about flowers/vegetables to balconies or micro-cultivation indoors, than to campaigns on perennials and trees. It is therefore important to segment well to get to know your customers, because only then can you be fully relevant to your members.

However, sometimes it can be effective to send the same message to everyone at once. When you have big sales events (such as Black Week), it can be better to push the SMS to the entire member base for maximum visits to your store or online store.

How often should you text?

Receiving an SMS from someone can feel more private than getting an email. It is therefore important that you as sender respect the recipient and make sure not to send SMS too often. Furthermore, the content of what you send should be perceived as relevant – and not spam. The vast majority of us are happy to get offers or messages that are interesting and relevant.

We recommend an SMS frequency of 1-3 per month. For new members, however, it is important to send an welcome SMS as soon as they have become members, so that you start the dialogue in a good way.

How long should the SMS be?

First, there are financial reasons to keep the message at a maximum of 160 characters (i.e. the message is dispatched as one SMS). In addition, it is also best to keep it short, because most of us prefer a message that “gets to the point” quickly. The author Mark Twain once wrote in a letter to a friend: “I apologize for such a long letter – I didn’t have time to write a short one.” In other words, spend some extra time formulating yourself in brief – it (almost) always is better.

Send a birthday greeting – everyone likes attention on their birthday

A member’s birthday is a good opportunity to give extra attention and create a personal dialogue. Most people will be very happy to get a birthday SMS!

  • Happy birthday, < first name>! Get 25% birthday discount on an optional item in our store or webstore: tinyurl.com/f5u-cn3bd Birthday greeting from <store name>
  • Hooray, it’s your birthday! We hope you’ll have a nice celebration, < first name>! You get 25% on an optional item in the store. Welcome!  Greetings, <store name>

 

Examples of SMS to new members

All new members should receive a welcome greeting as soon as they have signed up. You remind the member that are part of the loyalty program and that they will receive SMSes and emails from you going forward, plus the customer experiences an immediate benefit of being a member.

  • Welcome to < Loyalty Program Name >! Get <-welcome advantage> your next purchase by completing your registration here: https://diller. app/signup/49345/ Greetings<store name>
  • Welcome to < Loyalty Program Name>! As a thank you, we want to give you <welcome benefit>. Show this SMS in store or use < discount code>in the webstore: link

 

Examples of SMS campaigns that yields good response

Timing is important, but the content must also be relevant. Here are some examples of great promotions. And don’t forget that members are loyal for many more reasons than discounts! They return again and again if they feel that your particular store makes them feel more welcome and appreciated that at your competitor’s store.

  • BLACK FRIDAY sales start now! 50% on most items in store and online. Get the best bargains already now: tinyurl.com/f5ucn3bd Greetings << store name>>
  • SUMMER SALE on all season products. We give member discounts of up to 70%. Visit the store or shop online: tinyurl.com/f5ucn3bd Greeting<store name>
  • Invitation exclusively for club members – Spring collection vernissage Tuesday at 5 pm.  We serve snacks and bubbles! Sign up here: link Greetings <<store name>>

 

It’s a good idea to plan your campaigns in advance

It pays off to plan seasonal promotions well in advance to make sure to offer relevant benefit to members when they are interested. Use segments and purchase data to tailor content to your different audiences.

  • Autumn news have arrived! Welcome to member’s night with exclusive offers Wednesday 11 August at 7 pm. welcome! Greetings <store name>
  • Spring is finally here! We celebrate with 20% discount on all BIKES! Offer valid to March 30. Visit us instore or shop online: tinyurl.com/f5ucn3bd
  • Hello <first name>. Take care of your skin in the Winter! This week we give triple points on cleansing products and face masks. Greetings <store name>

 

Don’t forget to tell employees about ongoing campaigns
  • Employees must be informed when you send out a new campaign, so that customers don’t have to explain the SMS offer to staff when they visit your store.
  • The easiest way to make sure that all your employees are on board, is to include them in the SMS and email lists for outgoing campaigns.

 

How to keep the SMS under 160 characters

Since many links can become long and use too many characters, you can shorten links with URL shorteners such as tinyurlor  bit.ly.  When you send an SMS each character counts, and 160 characters are the maximum per SMS. You may of course send a longer message when needed, but it will cost “an extra SMS”.

How to take good photos

One of the most important things to keep in mind when shooting photos for your newsletter, website, or social media is that the photos are sharp and focused. Also, there should not be too much “noise” in the image. This way it is easier for the recipient to perceive what is being conveyed. Here are some simple guidelines:

Remember the lighting
  • If you can, use a large light source to get soft shadows in the image.
  • Use a reflector to reflect the light (it could be a white t-shirt, a white sheet or simply your hand).
  • Take your pictures outdoors if you can.
  • Remember to have the sun / light in your back, otherwise the object will be too dark.

 

Pay attention to the composition
  • Pay attention to the background so that there is not too much “noise” in the image.
  • Remember the rule of thirds, which means that you should see the picture as divided into nine parts (see figure). The most important parts of the composition should be along these lines or where the lines intersect.
  • Use symmetry as a tool.
  • Be aware of lines and patterns, for example in nature or of shapes / objects.
  • For portrait photography, it is often nice to have a “blurry” background (portrait function on smartphones) – then the model will appear as best as possible and the image will be neat and clear.

Rule of thirds Diller

Think untraditionally
  • Get closer to the object than you first planned.
  • Find the right angle and use your body actively – sometimes it’s best to squat or even lie down, other times you can stand on a chair.
  • Play with contrasts and “negative space”.

 

Take photos that match your brand
  • Make sure that there is more or less the same image style on the different media channels you use, so that customers recognize you by the style. This also applies to text/language.
  • Remember what profile colors you have and use them actively as a background, in image details or on filters.

 

Last, but not least
  • Remember to clean the lens before you start – easy to forget!
  • Hold the camera still until you have finished taking the picture – often you take the camera / mobile down exactly as the picture is taken, and the picture becomes blurred.
  • Do not overdo it with filters – simplicity is usually the best.

 

Here are some good sources for further reading:

What is a loyalty program?

A customer club, or a loyalty program, is a strategic tool for identifying and rewarding loyal customers.

The customer club aims to strengthen customer relationships and ensure that customers are more satisfied and return to the company time and time again. The basic idea behind membership is to create regular customers who get a permanent and long-term customer relationship with the company. This means that the company sells more often and more at a lower cost.

A loyalty program is a marketing platform

In reality the loyalty program becomes a marketing platform that can replace or complement other marketing. Marketing is expensive and a customer loyalty program offers huge savings, because one does not have to spend precious funds all the time to get new customers into the store or online store. A loyalty program from Diller® is a software platform that ensures communication and dialogue with customers, and where all communication is in accordance with GDPR legislation.

Relationship building as a strategic measure

If a customer changes vendor after they have first started collecting bonus points, coupons or discounts that the loyalty program has provided, they lose their saved benefits. This means that they feel that they are “losing money” by changing vendor. The result is often that they choose to remain with the store to get the benefits they have already earned, often despite the fact that the other store’s offer is cheaper. In other words, a loyalty program provides a strategic advantage for the company.

Diller loyalty program_all rights reserved_copyright

Loyalty is not a program to be administered. Loyalty is a feeling.

There is a difference between repeat business and loyalty. Repeat business simply means that someone transacts with you multiple times. You likely offer them some sort of convenience – price, location, selection.

Loyalty is different. It’s a willingness to go out of one’s way to choose to do business with you. When we are loyal we are willing to suffer some sort of inconvenience to continue to do business with you.

Stephen Shedletzky, Simon Sinek Inc.
Article from April 2021 (LinkedIn)

Why start with a loyalty program?

There are three main reasons why you should start a loyalty program. In fact, we would say that you cannot afford to wait, and that you’d better start as soon as possible – whether it is with Diller® or not.

1. Sell ​​MORE for less
  • A customer loyalty program makes it much easier to get customer back to the store, so that they shop again and again… and again.
  • Marketing is expensive. Loyalty programs help reduce costs significantly, since you don’t have to spend money on getting new customers all the time.
  • A loyalty program gives you access to customers when they are on their phones, not only when they are in your store.
  • Diller’s efficient and affordable customer club enables SMEs to compete with large chains and Amazon.

Did you know that… if you keep 5% more customers, profits increase by as much as 25% -95%? (Harvard Business School) 

2. Get the crucial GDPR consent automatically
  • The store CANNOT communicate with their customers without consent.
  • A GDRP-compliant consent through the loyalty program membership is most valuable asset for SMB companies.
  • A member of Diller® automatically gives their consent, which means that the stores have the right to have direct and recurring dialogue with them. In other words, the stores get access to their customer base.

Did you know that… Tarte Cosmetics rewarded members for being engaged, not just for purchases – and profitably so. Loyalty members made up 44% of revenue despite only making up 21% of the client base.

3. Know your customers and be relevant to them 
  • Customers’ interests and purchase patterns can easily be analyzed in Diller®. This means that stores can run targeted, personalized and relevant campaigns that create more loyal and happy customers.
  • Loyalty programs make it simpler to convert single purchases to repetition sales = increased lifetime value.
  • Diller® helps keep competition at bay.

Did you know that… the probability of selling to an existing customer is between 60-70%, while that of a new customer is only between 5-20%? (Marketing Metrics)

Customers appreciate stores that do their utmost to create a great shopping experience. Good benefits, offers and promotions can attract new and existing customers into the store. If you analyze what they buy and what they are interested in, you can create relevant campaigns based on customer behavior and preferences.

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The Loyalty Calculator

We have developed a calculator that allows you to easily calculate the potential of loyal customers for your company. For what does customer club really mean for the economy? What happens when a customer buys more often and more? For example, for 100 kroner more and 2 times more often in one year – or is the customer for 6 months longer? With the calculator, you can easily calculate what regular customers can mean in increased sales. We call this the Diller effect!

Loyalty calculator Diller

Click on the image to get to the calculator

Remember that it costs five to ten times more to acquire a new customer than to keep the ones you have (Inc.com). Through the Diller® loyalty platform, you secure the GDPR consent from the customer, so that you can run campaigns and activities that are relevant and interesting to your customers.