3 min read

Loyalty Program Strategy – QUICK WIN

Written by Andriy Boychuk
3 min read

In this video, I will show you an email marketing strategy for a loyalty program which very easy to automate and which will benefit you as well as your customer.

If you want to learn more about the loyalty program, read our recent case study here.

What if you already have a loyalty program for your store. How to define if your loyalty program works properly? Find out the answer here. 

– In this video, I will show you email marketing strategy for loyalty program which is very easy to automate which will benefit you as well as your customer. If you are first time on this show, my name is Andriy, I’m the founder of an email marketing agency for e-commerce called Flowium. On this YouTube channel, we provide useful information about email marketing as well as Klaviyo and other software. Please subscribe to be updated when we release new video and we are releasing new video every Thursday and sometimes other days additional videos. Let me ask you. How many rewards card do you have? And how many loyalty programs are you enrolled? Do you know how those program works? What is your current balance of your points box or whatever they call it? Personally in the past, I was subscribing to every rewards program out there, pharmacies, closing store, foodware store, like bookstore. I have a key chain with bunch of different cards, but until today, I didn’t know how those program work and what is my current balance. Some pharmacies like Duane Reade, I go often there and I use my rewards card every time. But what is the benefit? I have no clue. Maybe there is, but personally, I don’t know. So in this video, I’ll show you how not to repeat the same mistake as the big brands do. In case if you don’t have loyalty program in your store right now, you can sign up for free for Smile IO. This is one of the most popular loyalty program for Shopify and other platforms. This is my affiliated link, flowium.com/smile but you can go directly to Smile IO and sign up there. But if you use any other loyalty program, it will work as well. The strategy I’m about to show you will work as well. Again, this week to implement strategy, we do for all our clients. And before recording this video, I checked one of our clients. And in the past 30 days on autopilot, one email generated more than $4,000 which is 70 something cents per recipient, which is really really high. So how does this typically work right now? A new customer or existing customer visiting your store, they go to rewards page. They sign up for your rewards program. So when they join, you add them some kind of points for joining. Then there’s additional ways how they can earn like to share on social media, tell us what is your birthday, leave us testimonial review and you add them additional appointments for free. So basically step number one, join, get points for free. Step number two, provide additional information or share on social media, additional free points. And the third, if they bought something from you in the past or buying right now, they will collect additional points. So they already have balance, but trust me, they have no clue what their balance is. How much points they have and how they can redeem it. So the strategy is to set up automatic email which on monthly basis will remind them about their balance or how many points they have and how to redeem it. There’s three benefits for you in this. First, it’s additional touch points with your client. Second, it’s additional reasons for them to buy, “Oh, I have X number of points and I can redeem for $10 off or $20 off and let me buy it. And third is just good customer service. Letting them know about the loyalty program they join and what their balance is and how they can redeem or get more points. So here is how it works. I’ll go to my computer and I will draw the diagram and explain you the strategy. Okay, so let’s start. So we use Miro for drawing our diagrams strategies. So please disregard the Legend. Okay, so the first trigger is they join, join your program. So this will be the trigger. And after they join the program, you do not want to send them right away the saving because you want to add delay. Typically if you go to bank and you open a new account or a new credit card, it takes like 30 days for you to get statement. So we’ll do 30 days delay. Let’s just move it to here. Then 30 days delay. Then after that, we want to send them email. And I like to call the rewards statement flow, rewards statement flow. By the way I’ve shown you as the strategy, but if you use Klaviyo, under this video, there’s tutorial, there’s link for tutorial how to do it in Klaviyo. If you use any other platform, you can do the same thing, but you have to do it on your own. We specialize it on Klaviyo. This is why we recorded a video tutorial, how to set thing up technically in your Klaviyo account, for smile.io as well. And in the future we might add loyal king or loyalty king. Okay, so join program delayed 30 days, then the rewards statement, this is your automation or flow. Name, then email, rewards statement. And in the statement, it’s very simple to email where we should say something like, “Hey, Mr. Client, “you are part of our loyalty program. “You joined it, “and your current balance is X, Y and Z. “You can redeem it here.” And you can say like, “Your number of points equal to X number of dollars “or any other gifts.” And also you can even add information about how they can earn more points or just direct them back to the page where you describe how your loyalty program works. Okay, so this is months number one. And what we do next which is, its beauty of the the strategy, you just put it back. Put them back and wait 30 days, and receive next month and the next month and next month. It’s like it’s so simple, but it’s benefit your client because you’re letting them know how many points they have. And it benefits you because you’re getting more money. You’re generating more money, with leveraging your loyalty program. Again, it’s very simple. It will take you few minutes to set it up, but the benefit is tremendous. Next Thursday, we’ll release another video about strategy, how to leverage your loyalty program, to increase your revenue and also build better customer experience for your customer. So please stay tuned, subscribe, like this video, if you like it. And comment, if you have any additional questions. And for the next week, we’ll discuss topic about how to leverage a loyalty program and combine it with email marketing and set it on autopilot that you have to do it once and almost forget it.

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