The global markets are entering into a recession and Loyalty Programs are under the microscope once again. Their ability to attract more patrons and bring in more footfalls to the business becomes important for continued funding for this initiative.

When cash is at a premium, Marketing departments are looking for cost-effective and easy to roll out ways to make their Loyalty Programs continue to succeed. Here are a few easy to implement ways to ensure that your Loyalty Programs continue to be a hit with your customers even in a recession.

Make on boarding of new members simpler
One of the reasons people are wary of joining a loyalty program is because of the complexity involved in the whole process. Beginning with the lengthy form they have to fill in, to the subscription fee and the lack of any motivation to join in. Marketing departments need to understand this and find out ways to make people take the leap. Here are some ways to achieve your goal of increased membership:

Throw out the multi-page enrollment form and replace them with smaller and simpler forms – extra information can always be collected later by your contact center staff

Eliminate any joining fees – your source of revenue should be future business from a loyal customer. Any fees during a time of economic constraints and you can kiss your new members good bye.

Give extra (preferably non-cash) benefits for registering during a recession. To make things more attractive, you need to consider giving extra benefits for registering during a downturn. These need not be expensive, but should convey that you care and appreciate them signing up for membership.

Instant gratification
Waiting for a reward is the most agonizing thing in any rewards-based loyalty program. The keeping track of transactions, daily reviewing of account balance and the constant mental calculation of points earned removes the fun out of a loyalty experience. Wouldn’t it be nice if, for once, you didn’t have to worry about how many points you’ve accumulated before you decided to redeem them? Here are two says you can provide instant gratification to your members.

Give benefits instantly – do not wait to have your loyal customers accumulate points to be redeemed later. Points should be redeemable the moment they are accrued. Any thresholds should be eliminated to facilitate this. You earn them and you can burn them. It should be that simple.
Shower your loyal customers with benefits that don’t cost you anything extra. Not everything has to be cash-based benefits. Simple acts such as handing over a newspaper at the check-in counter or a designated seating area or reserved tables in case of hotel loyalty programs – acts that don’t cost extra – can go a long way in creating stickiness among your loyal customers

Communicate & Demonstrate
Tough times call for more communication. Communication should be such that it does not take the form of a spam but truly sends out the message that you value and appreciate their patronage. You need to blow your own trumpet and there is nothing negative about this.

Tell the world how your loyalty program is truly valuable. Take help of inexpensive media such as the internet. Concise emails that explain your value differentiators always help. See if you can also generate word of mouth publicity for your loyalty program. A simple way to do this would be to give members the ability to make recommendations / forward such communication to their network. If they can personalize this message then nothing better than that.

Demonstrate to your loyal customers how the benefits are being extended only to them and not to the general public. Actions speak a thousand words. Make sure that your loyal customers see and realize that some benefits are being extended only to them. That will make them feel special and increase their loyalty towards your brand.

Do not forget your other customers
Customer today, loyal member tomorrow. While trying to please your loyal members, remember that you have a large untapped base of potential members. It is important that you do not alienate them so much that they begin to carry resentment towards your brand.

Treat every customer as important. Your level of service should not drop at any point in time. Special training might be required to your frontline staff to ensure that they don’t falter. A happy customer today might be a loyal customer tomorrow

Have some benefits for any customer that walks in the door – type of benefit should be slightly lower than the one offered to loyal customers. Again, by extending non-cash benefits to your non-members you can create a sense of goodwill towards your brand which could draw them to your brand.

Recession or no recession, your loyal customers are your most important assets. Ensure that you increase their numbers and take good care of them and you can ride any wave of recession. Especially in challenging times, they are the ones who could make the difference between success and failure. It doesn’t take rocket science to extend superlative service nor does it have to cost an extra penny. All it takes is a little bit of imagination and the possibilities are endless.