Do you have a loyalty programme? Is it enough to keep your customers happy? Your loyalty program needs to be engaging, compelling, mutually beneficial for the business and the customer and easily accessible.

What’s easily accessible? A survey by ‘RetailMeNot’ has found that approximately 80 percent of consumers are more dedicated to brands that offer rewards programs and a mammoth 70 percent are more likely to partake in a loyalty program if they can access it through their mobile device – as The Who said, we’re goin’ mobile.

Only recently, Uber released it’s own rewards system in Australia via their app. We found ourselves texting our friends to find out what tier they were on, panicking at the thought of being dropped a tier if we didn’t ride or order our food via the ubereats app. So we’ve taken a moment to really look at this – what made us so happy to do this and yet we didn’t for Uber’s competitor Deliveroo? We were blatantly being made to spend more money to keep a level of status? Why did we as consumers, do it?

Well for starters, the experience. For example; Uber was offering customers cheaper fares between two regular destinations that the individual customer frequently travelled. This level of personalisation was both impressive and welcomed.

It doesn’t take a genius to understand why brands and companies alike offer loyalty programs – they want us to return, right? If you look at most majors, chances are there is a programme they want you to be part of.

Rewards programs work because they retain and engage us through their points and goals system. We are naturally, as human beings competitive and like free stuff. These points systems keep us coming back and engaged beyond the point of sale. For most companies, it costs more to acquire a new customer than it does to retain a current customer for repeat purchases. Through a rewards system, your purchases and lifetime data are in one place. Promotions can come and go and companies are able to see what prompted you to hike up your rewards points and what didn’t. It’s a new, valuable way to gain new customer analytics – smart huh?

Just as the Uber rating system created a frenzy amongst friends (we blame a team night at karaoke for my poor rating). Their new points tier did just the same. By word of mouth, and the lure of saving up to 50% off rides if you were a VIP, Uber referrals increased organically simply by customers telling their friends for a cheaper fare– and being a little competitive of course. This kept the current customer happy with discounts, Uber gained gained new customers at a lower acquisition cost and invaluable customer data.

So taking it right back to the mobile data. What’s up with that figure? Why are 70 percent of people more likely to join a loyalty programme if its on their mobile? Put simply, it’s convenient. We all know our mobile phones are constantly attached to our hands. They are always one scroll or swipe away and in that same notion, brands too are always just a tap away. Brands who incorporate mobile for their rewards programmes create happy customers because they have made it accessible resulting in a robust customer experience. The use of a mobile phone rewards account, is faster than the traditional ‘search in the deepest crevices of your handbag’ rewards card or standing at a busy register providing your email address.

Brands are now also combining their customers loyalty experience with in app mobile payment systems. By doing this, they are removing friction from the buying process and encouraging that repeat business from consumers. Returning to our competitive human nature, customers can also keep track of their loyalty status or points and get instant gratification with each purchase. The excitement of earning points and achieving milestones gets customers to come back to check their tier over and over. Adding this competition to your mobile experience engages customers and drives your retention rate.

In mobile apps, Companies have the flexibility to change the customer experience instantly by offering personalized deals, birthday incentives, and gratitude for anniversaries such as when a customer first purchased with them or joined their loyalty program. Bigger companies also update the visual experience regularly, further enhancing that sense of wanting to return for “something new”. Each one of these quickly changeable factors makes for a more personal experience with that company. We’ve said it before (and we’ll say it again) any Interaction with a customer on a consistent basis with a personal approach creates an emotional connection with the brand. And we all know emotion drives most of our purchases – guilty!

So It’s clear, we get it! In-app reward programs can and do improve customer engagement but what if you don’t have the budget to create an app for your brand or company? Are rewards programs and loyalty over for you? Not entirely.

Although the use of a mobile app, can take away challenges and create a better customer experience in most cases. A lot of consumers are still looking for that one on one interaction, a personalised experience if you will. As mentioned above, it is about an emotional connection with the brand. As a smaller business, you can take advantage of your smaller community and focus on unique marketing ideas and not just creating the best deal in your rewards program for a quick win. Creating brand loyalists organically can be challenging so smaller businesses need to present consumers with reasons they should keep returning, whether it’s in the form of individual rewards, exceptional customer service, or a thoughtful interaction.

As a small business, you can do this by offering even a small incentive to come back – whether it’s a raffle that is drawn monthly for a free item and entry is when you buy five coffees. These one on one rewards, make customers return and earn their rewards (or entry to the raffle!). A reward can be minimal, but it’s the feeling of being part of an exclusive club or “being recognised” from a company that is key.

Another step that a lot of larger companies are unable to do in a personal way, is showing individual thanks to these loyal customers via social media. You could do this by honouring a VIP customer or sharing the best outfits of the month from customers (if they give permission). Demonstrating thanks to customers on social media makes them feel special and, in turn, will make them more inclined to stay true to your business.

It’s important if you don’t have a big budget, to make sure you are not ignoring your customers: you will not gain their loyalty this way. In the same sense, regular communication of your loyalty programme or a manual update of how a customer is tracking is an easy way to stay in a customers mind and reiterate that sense of being part of the club or family.

A great way to do this is to send a post purchase follow up and letting the customer know where they are tracking in your tiered program. Within this email, you can give similar product recommendations and even do a break down of which tier another purchase would take them to. You can also use your email platforms with your customers to ask them to take a survey in exchange for loyalty program points (and maybe a small discount!). This is a great way for you to gain insight and for the customer to feel valued.

The opportunities are endless, but for a small business to be successful, it has to stand out from the pack. We suggest finding your niche and becoming an expert in it and rewarding your customers for wanting to engage with it. You want your program to encourage consumers to take action and be part of it. Your loyalty program should be less transactional and more focused on building relationships. Access to special events, content, services, small discounts, or products are all ways you can customise to your business and your customers’ wants.

Finally, make sure your loyalty program is on brand to your business. Your customers have found your business and followed you because they see something they resonate with. It might be your own energy, the store atmosphere, the products environmental impact or a lifestyle you help them support.

As you consider the various rewards you can offer your members, be sure they mirror your business’s personality and reputation. That should be the basis of the rewards you offer to your customers. In today’s loyalty programs, it’s about leveraging these initiatives to gain a better understanding of your customers so you can offer them better product and services. The real currency in today’s market is understanding and converting that into a personalise experience. This is where the major worth of a customer loyalty program lies. While the product offers and discounts will likely be what drive your consumer base to sign on, competing with larger companies and bigger budgets, the value you develop comes from the information you can gain from personalising your customers experiences.