With the rise of inflation, it is more important than ever to demonstrate the importance of your loyalty program and offering promotions to your customers. A good loyalty program will show customers their program can power through inflation and offer solutions that will withstand the rising prices and the uncertainty surrounding the economy.
It can be tempting to try and not draw attention to the inevitable effect that inflation will have on your program, but by taking that approach, you are not giving your customers a sense of comfort or stability. Taking a hit during this time is always a possibility, but it is how you handle yourself after the fact that is important. Here are three things to remember when your program is trying to “bounce back” in the face of inflation.
Consider ‘Upping the Ante’ When It Comes To Rewards And Benefits
Inflation affects everyone whether they are a part of your program or if they are still “shopping” among brands for the loyalty program they can use to get the most bang for their buck. Simple or lackluster rewards are not going to cut it anymore when trying to draw in new members or retain existing ones, and for some brands it’s likely time to step up their reward game.
Offering rewards or member benefits that can directly improve the customer's day-to-day life somehow and makes things easier for them is what will make you stand out. In times of inflation, people want to get the best deal that is offered to them. If a loyalty program can keep providing them with value, then they are more likely to continue using that brand even if the prices continue to rise. For smaller businesses this can seem intimidating but you don’t have to try and keep up with the larger companies straight out of the gate. If your customers are given even $10 worth of points after spending $100 at a specific store, then it helps offset the effects of inflation because they are still earning more value for their money.
Create Product Bundle Offers Or Promotions
When inflation rates are rising, people are hesitant to buy as much as they did before. Offering product bundles gives a chance for them to still make purchases but still see some savings. This is beneficial for both brand and consumer parties: this helps the customer save money and brands can use this opportunity to reduce the number of any excess products they posses or specifically drive sales of items that may sell slower on their own.
An integrated loyalty platform can provide you with promotional tools for creating different types of sales promotions such as double-point bonus offers or product-specific SKU bundle discounts. So even if you can’t always offer a lower price, you can allow members to get a deal and earn more rewards and points for purchasing specific products together.
Convey Understanding And Empathy
Rising inflation is obviously unnerving for both the business world and in customers' personal lives. Brands need to approach their customers with empathetic communication by letting them know they see them as people and not just sales. It’s more important than ever that your loyalty program reflects your audience’s needs and understands their spending habits and values.
With detailed customer trends insights and data analytics tools in your loyalty program you can better predict how your customers are responding to inflation and develop new strategies on how to engage with them more effectively on a 1-to-1 basis. This is where fostering brand trust and loyalty can come into play, and can either lead to a rise in customer retention if done well or increase customer churn if efforts fall short. When a customer sees that a brand is putting time and effort into connecting with them and being sensitive to the situations that a customer is going through, the relationship with the company is strengthened.
Bouncing Back Through Loyalty
Overall, inflation affects everyone and it’s important to be sensitive in your approach to your customers. But it’s also the perfect time to for brands to promote the benefits of their loyalty program and highlight how it still offers value to customers even during slow economic times. This is a very unique opportunity for businesses to use loyalty programs to reignite their customers' confidence and create a sense of comfort and stability between a customers and the brand.
Want to make sure that your program is taking all of the right steps? Reach out today and let us help!