Loyalty program prep for the Christmas rush

Tis the season to be Jolly! At least that’s what you’re hoping is going to happen at checkout this Christmas right?

Retailers are expecting a 2.9% boost, according to retail forecasts. But that doesn’t mean you should lose focus on your promotions!

While most of you have pricing or sale incentives are already scheduled, it’s easy to forget about your loyalty program.

After all, it’s one of your best tools to increase profitability, without resorting to product discounts.

Here’s a few handy tips and tricks to get your program prepped this Christmas season:

Start creating member-only benefits: For your business, Christmas is about treating your most loved family members - your customer. Offer customers that little added extra for being a registered program member.

Here are a few examples based on industry:
eCommerce: Free delivery, add-on products.

Hospitality: Upgrades, free tastings, cash-backs, Christmas function discounts.

Retail: Tier based additional discounts pre-loaded loyalty gift cards.

Salon & Beauty: Add-on treatments, pre-Christmas package specials, VIP nights.

Accommodation: Upgrade offers, zero booking fees, cross-over restaurants points.

These also serve as an added benefit for loyalty member registrations. At Christmas time, buyers will often want to join for those added benefits members receive.

Encourage members to spend their points:

During the lead up to Christmas, your members might be more concerned with gift-giving than their current point balance. It’s the perfect time to remind your customers about their remaining balance owed, especially for the price-sensitive buyer.

It’s a win-win for retail, as your point liability is reduced, and you’ll typically find an increase in redemption and sales during this time.

So what if they’re spending remaining balance!

From our experience, if you have a solid programme mechanic then you’ll always see an uptick in sales and overall transaction size. Especially when your customer realises they have more to spend at the point in the year where prices are generally low.


Encourage enrolment

The key to a good loyalty program is ensuring you have a steady stream of newly registered members. The more active members added, the more customer retained which increases your likelihood to be profitable.

Since this is the busiest time for retail, it’s the perfect chance to snap up a new set of registered members.

You can do this by creating registration incentives to encourage enrolment.

Here are a few good examples;


Make it a countdown till Christmas

If you have a lot of frequent customers, then spark their interest by showcasing specific days where members receive additional rewards.

These could be double point days, bonus points or zero shipping fees.

If you really want to start influencing purchase behaviour, start setting double point days with shorter expiration times in the lead up to Christmas.

For example,

Second week December = double points expires December 24th.
This not only encourages customers to shop prior the remaining days of trade but potentially poaches customers from stores they would have visited closer to the time.

That’s what I call a gift that keeps on giving

While your typical promotions are there to create a short-term spike in sales, it’s your rewards program and member participation that can have long-lasting results, all-year round.

Don’t let these opportunities pass you by to enrol more members and activate them down the line.