How can you use loyalty programs to encourage customers to try new products?

Running a loyalty program, means you need to understand each customer segment well. Offer samples or trials to the higher value or potential group. You still need to balance the cost of those trials you see.

Consideration: On top of the six loyalty strategies, look into implementing a feedback mechanism within your loyalty program to gather insights on shopper preferences and expectations. This data can guide future product development and loyalty strategies, creating a dynamic loop of innovation and overall shopper satisfaction.

A good loyalty program establishes trust with the customer through its shared value model. When this is in place, it's easy for a customer to try out a new product. Free samples and trials work but imagine the impact of a relevant (aligns with customer tastes, preferences, values) experiential reward that has brand congruency elements as a nudge to try out a new product? Memories, emotional connection from day one...

Immediacy is key to engagement so one of the best times to give customers a free sample is when they join. Reward them for joining with a welcome gift. The one sector that is nailing this is QSR's

-By providing complimentary access to new products/ features to the highest tier of customers, you may not only keep the exclusivity intact but get relevant feedback/ honest reviews from the loyal customers. The loyalty programme works as a key customer research tool. -Lower tier customers can also be given complimentary access as a special limited time offer as a beta test group. - A/B test prodt feature comms before rolling out to the larger audience. -In short, the loyal customer base can be early adopters of new product/ features and help acquire new customers via referrals as well. -Loyal customers can be leveraged for co-creating any new product/ features which will make them feel special as well. So it's a win-win.

If your program has a currency that is a great lever you can use. Give bonus points for trying the new product or SKU.. If you make the bonus attractive, it drives accrual faster and will motivate behaviour change

Combining geofencing with gamification can be a great way to encourage customers to try new products... I previously ran marketing campaigns for advertisers where we partnered with a publisher to send push notifications to users of the publishers' app that were within the vicinity of their store, issuing them with a discount code that steadily decreased in value depending on the length of time that passed. These kinds of campaigns also get lots of attention on social media!

Achieving this is quite feasible in a retail setting where consumers are generally cooperative. It's important to remember that exceptions exist, but overall, this approach should resonate with a majority of customers. The willingness of consumers to engage and appreciate these initiatives is often easily discernible. While some may not show interest or choose to engage, it's a common scenario of trade-offs in retail. Therefore, the focus should be on those who are ready to engage and cooperate, maximizing the impact of these strategies.

Another great way can be if you give online and in-store customers the thrill of discovery and the satisfaction of prizes. For instance loyalty program members need to search for marked products and when they find them, they get a prize. While looking for the hidden treasure, they may very well find other products they like and discover parts of the store or your website they may have otherwise overlooked.

Gamification is a part of the execution plan. Before, that we need to have a strategy framework ready to set the goal of the contest. When their is a legacy program and you want to introduce a new product, gamification can be used for invite for the special launch event. As members of the program looking for contests/games to earn a reward.

Brands have been using loyalty insights for business decision making for decades and segmentation has become a complex tool for prediction of behaviour and decisioning. The future is in real-time dynamic segmentation utilising time of day and geolocation to create highly personalised and relevant comms

Their are AI engines available in the market which will take each member as a segment of one. Businesses know the importance of data and they are.taking cues from loyalty programs to cater to the needs of TG and as well to increase their revenue.

Retailers can work wonders with their extensive data. My top strategy would be to maximize this data for targeted marketing and optimizing inventory. Next, I'd focus on cross-selling, recommending related products to customers based on their purchases. Lastly, I'd use wet sampling in-stores and include mini sample SKUs with orders, encouraging customers to try new products.

Bundling is a brilliant way to deliver value to members while increasing basket size. Combining low- and high-margin items together can help drive a bit more spend on those high-value baskets, while raising the overall profitability of carts with the cheap & low-margin items. To start, ask your data team for help in identifying what items of dissimilar price & margin are often purchased together. Then, experiment with members-only offers combining good pairs of these items. This is extremely helpful in ecommerce, where shipping & returns can destroy the margin of low-price baskets.

Lean into the emotional benefit of savings to drive true loyalty. Customers want to feel in control of their finances, especially during challenging economic times, so tap into that intangible benefit to build loyalty beyond rewards and discounts. Use effective copywriting and channels to make your brand or retail company a destination where your consumers 'want' to shop and buy more or new products, rather than a place where they 'have' to go because they need to redeem rewards.

You can also combine rewarding referrals with gamification. For example you can create a badge-based loyalty program, where members can earn a badge when their friend uses their referral link. It’s even better if you reward both parties with something recent from your selection. So your existing and your new members can both try out something new.

Reviews are HUGE for loyalty. If a customer feels confident that their choice is validated by others they are much more likely to purchase. Exactly the same applies for customer referral. Incentivising both from your existing base is a low cost - high return strategy

It is important to remember to not implement all of these tests at the same time, but to long-term have a strategy on when to reach out for what feedback. Similar to "ad exhaustion", if you continue to ask for feedback, survey, etc. you will turn a loyal customer awy from you.

1. First to identify customer needs with our good and courteous behaviour 2. Create an aweness campaign to realise customers that our product can satisfy your needs. 3. Differentiate product quality Features and product competitive edge on others brands. 4. The most PRECIOUS and Core MARKETING feature is customer care , treat then by extracting their emotions and ensured customers their needs and emotions are most precious for us . After sale services & Customer Care is only stretgy to create binding and loyalty with brand.

Loyalty program's are a brilliant engine to collect & use customer data. If you're a marketplace (especially in beauty), this becomes incredibly powerful for your retail media and manufacturer-funded offer mix. Once you have a workable member data model in place, you can leverage it with partners who want to reach target consumers. This is very common in beauty programs, where members can unlock a free sample with a specific item purchased. If you can get the beauty brands to fund these offers, then this can be an incredibly cheap way to drive member value without any negative impact to basket size & profitability.

Use the insight from your program to understand what customers like about a product and talk to the other members about this solution....they will love it!

Loyalty programs allow you to obtain valuable customer information through the analysis of their behavior and direct contact with them. When we want to test a new item and collect feedback, it is important to properly segment the base to reach the right customers, as well as to use appropriate analysis and market research methods. However, when this new item is totally disruptive, it is also important to contact other customers outside the loyalty program who could give us a more acidic opinion to help us improve it and ensure a successful launch.