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Here is a beautifully written post we stumbled on, about how to create irresistible loyalty programs. It was written by Len from a customer support software company called Groove. We have in common very similar thought patterns about customer service and this blog post, brilliantly written by Len makes so much sense, so we thought we should share.
Len Markidan heads up marketing at Groove. He’s focused on helping startups and small businesses build better relationships with their customers. Here is his post below, and you’ll find points that are very relevant to your business.

2.1 billion.

That’s how many loyalty program memberships are held in the U.S. alone.

With a population of 319 million, that’s more than 6.5 memberships per person.

Over the years, brick-and-mortar retailers and online businesses alike have figured out that when it comes to increasing customer lifetime value, loyalty programs, simply put, work.

But how do you make them work for you?

Surely whatever works for Macy’s or CVS or Jamba Juice won’t apply, apples-to-apples, to small online businesses, right?

Digging into the research—and the sheer volume of loyalty programs out there means that there’s plenty of research to dig into—I learned that the answer isn’t a simple yes or no.

There are things that small businesses can do to ensure that your loyalty program makes your customers happy to keep coming back… and there are mistakes you can make to ensure that your program never gets off the ground.

Today, I’m digging into both.

The Psychology of Loyalty Programs

Loyalty programs work not because of marketing voodoo, but because of the way our brains are wired. There’s a psychological effect called … Continue here


Loystar provides small businesses technology tools that help them engage and keep their customers coming back. Download our Merchant App, that lets you quickly create and run your own loyalty programs (unlimited), send SMS broadcasts and Schedule Birthday Messages for all your customers. Get it here (300 Free SMS when you signup this week).

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