If you wish to create the best loyalty program, the chances are that at one point in time you have come across a program which values VIP tiers. In these programs the customers are given additional benefits so that they can be more loyal to the business. They are the best way that you can boost the engagement and enrolment in the loyalty program. Such programs that are very popular in Singapore are Starbucks VIP program and the VIP tiers that are offered in some businesses the VIP programs do work well in the luxury, cosmetics and fashion industries. Below are some five guidelines that you can use in designing the best VIP program in your company.
Making the best tier exclusive
The main aim of the VIP is to make your best clients feel that they are most valued than low customers. Customers who make high purchases must feel that they are special that they can make maximum use of the reward program. You VIP program can lose its effectiveness if many people are valued. The best thing that you can do to get a happy medium is by getting enough customers get into VIP status level, but not allowing many people. Below is a recommendation of the number of customers that you should allow in your highest tiers.
Your highest tier will depend on the tiers numbers that you can include in the program. It is good that you make your VIP be at the top level with the feeling that they are not many. When it comes to a 2-tier reward program, 25% of your loyal customers’ in the top tier, and in the three-tier, you make the percentage higher by 5 %.
Setting difficult but milestones that can be attained
A milestone refers to a target that a client has to reach so that he/she can qualify to join the next tier in your VIP program. For instance, the top tier milestone in a year is $1,000 in your program. Although this milestone can be achieved, many will try, but it is a few customers who can reach this target. Consider a case where a business decides to set a milestone of $10,000 then no customer will try to get it as they will consider it as a useless scheme.
You are able to make your milestones effective since the loyalty points that you earn are effective. Customers can be rewarded with points for buying goods and services. Using the pint system can be the best way you can make sure that the customers see their progress to the preceding milestone so that they can continue being attached to the program. This will portray that level you decide to set for each milestone should be difficult but can be attained. When you want to make your top VIP tier special, you cannot make it difficult that for anyone to attain it as no one will try.
For example, if you come across loyalty a program that you have to spend 1,000,000 points so that you can be a VIP. If in this program you have to spend 1 dollar to get one point, it will mean that you have to spend one million dollars so that you can be a member of the VIP. This can be discouraging. As a result, a few individuals will attempt to join it.
Use three tiers since it is a magic number
Since majority of individuals love the three tiers the one that is recommended for implementing VIP program that can be successful. There are some theories why three-tier is taken to be the best. It is taken as the initial number for forming a group. It is related to the triangle that is the strongest shape.
Three can be traced to religious stories in the past years. Name the tiers regarding your brand. The royalty program that you adopt should be the extension of your product brand. The easiest way that you can implement the program so that it is within the brand is to utilise brand names that will reflect the overall product. It is therefore good that you name your VIP tiers, program, and points.
For instance, the e.l.f.s have a reward program by the name beauty squad. They have done the best job of implementing a program that reflects their brand and extends to the VIP tiers. They have named every tier a special name that is relevant to their industry. This the best sample of using a 3 VIP tier but each VIP tier that this business has used will look to be more prestigious with time. For instance, you will be able to move from glow better to rising star and finally an A-lister, this will make you feel that you are moving up with the program.
Show progress to the next level
Your customers like to know the progress that they could have made, and they can do to get the VIP status. It is good that you make it easy for them to view their status in the VIP program. For instance in e.l.f it is easy for a customer to know the points that he/she has, and through the progress bar, you can see how near you are to get to the next VIP level. Nobody will wish to be left behind in achieving his/her goal; the tiers are used as a motivational goal that makes customers spend more as they struggle to reach the target.
Another best engagement tactic that you can use is to set the points of the program for a given period. This gives the customers specified period that they should act and lure them into spending money in your business. This can be the best tool to ehance repeat purchases and loyalty of the customers.
VIP reward programs are the best way of retaining customers as they provide the businesses with a way of making shopping funny and offering rewards based in the status on the most tangible products. This is the reason why so the majority of the best programs in the world implement VIP tiers in their program, by implementing your program you will be able to get high benefits.
Now that you understand that the importance of loyalty program. Contact Edenred Singapore right now and start doing it right!