Since there is no set formula to design a successful subscription-based premium loyalty program, oftentimes, businesses fail to leverage the maximum benefits of this high-performing loyalty strategy. If you are looking to amplify your brand’s reach through a premium loyalty program, here’s a list of do’s and don’ts that you need to be mindful of.
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Do: Ask yourself why you need a premium loyalty program
Don’t: Take decisions in haste
Although subscription-based loyalty programs are quite common in the market and they also have a good response rate, don’t make hasty decisions. A regular loyalty program doesn’t ask much from the customers. It rewards customers for their purchases so it’s an easy win for them with nothing at stake. However, a premium program requires customers to invest their money in a program. A customer may think twice before committing to a premium program, which has an impact on the participation rate. This is why you need a fail-proof, enticing enough program before you settle down on the premium or subscription-based module.
Do: Emphasize on pre-planning and end-to-end strategizing before the launch
Don’t: Just wing it or go with the flow
When you require your customers to commit to your program, you need to have an engaging, long-term and sustainable strategy in place. This is why end-to-end planning is extremely important. You need to keep your customers entertained and engaged while consistently improving customer experience so that they are satisfied with their purchase, which in this case is the membership fee to your premium loyalty program. Turnkey solutions from an experienced loyalty partner like Annex Cloud, will ensure that customers are content with their subscription and remain engaged with the brand for an extended period of time.
Do: Create a sense of community
Don’t: Neglect your premium members and customers
Exclusive access is one of the prime reasons that a customer opts for a premium loyalty program. You need to create a sense of inclusivity for your special members, especially when you have a premium feature within your loyalty program. Your customers need to feel special and exclusive compared to others that aren’t part of the premium program. Creating a sense of community will improve customer satisfaction and also help with organic promotions. It will create curiosity and excitement even among the customers that aren’t part of your premium program yet.
Do: Justify your subscription charges to your customers
Don’t: Take your customers for granted
It is important that your potential customers should be well-aware of the perks and privileges they can enjoy in your premium program. You need to justify your subscription charges to your customers so that they are encouraged to participate in the program. You may have planned great things for your premium customers but if they aren’t aware of these perks, why would they pay an additional fee for a loyalty program? Justifying subscription cost is an important step, that mustn’t be ignored.
Do: Be clear about the subscription costs from the get-go
Don’t: Surprise your customers with hidden charges
Most businesses often make the mistake of breaking down subscription charges and confusing their customers with unnecessary information. Breaking down the charges is understandable but it is also important to clearly state the final cost to the customers so that they are well-aware of the costs from the get-go. Most customers start filling out the subscription form only to find out that the charges are much more than they expected. This severely impacts the participation rate as well as customer experience. Also, it is crucial that you do not surprise your customers with additional, hidden charges which may put your brand in a bad light.
Do: Keep the subscription cost as reasonable as possible
Don’t: Unnecessarily charge your customers
Exorbitant subscription charges can threaten the participation and success rate of your premium loyalty program. As much as possible, keep your subscription fee to a minimum. It may not impact seasoned customers but it may negatively influence new customers and discourage them to participate in the program. This goes for additional charges even as well. If you plan on charging your customers more than just the subscription fee, let them know in advance, so that the customers can make an informed decision.
Do: Create valuable experiences for your customers
Don’t: Offer substandard rewards that do not live up to customer’s expectations
Always strive to create a lucrative deal and valuable experience for your customers. If the customers stand a chance to earn lucrative deals through your premium loyalty program, they will actively participate as well as organically promote your program to their network of friends and family. Charging customers an inflated fee for the membership and offering them substandard rewards can hamper the brand’s image and credibility in the market. Show your customers that you care and value their association with your brand through great rewards and handsome incentives. It will improve retention and acquisition rates and help you create a strong brand following.
Do: Rely on the expertise of your loyalty partner
Don’t: Undertake responsibility you are not ready for
A loyalty program, let alone a subscription-based program is a huge undertaking. To create a high-performing, effective loyalty strategy you need the experience and expertise of a loyalty partner like Annex Cloud. Annex Cloud has the technological prowess, resources and capabilities to design an efficient premium loyalty program that delivers higher returns. With over 100 integrations, you could create a loyalty program that resonates with your brand guidelines and helps you achieve your marketing objectives. For a free consultation and demo, click here.