Referral and loyalty programs are highly effective strategies not only for attracting new customers but also for enhancing the loyalty of current ones. These programs often prove more cost-effective than traditional advertising methods.
In this guide, we’ll explain how to implement successful referral and loyalty programs, illustrated with an example from a client known as FlexGym.
Setting Up a Referral Program
FlexGym has effectively engaged its existing clientele in a referral initiative. Here’s how it works: when a current client refers someone new, they receive a 5% cashback on their bonus account. This virtual currency can then be used for future session payments.
Importantly, cashback rewards accrue not only for the referral but also for every session the new client attends. If a client refers enough new customers, they could potentially train for free. Additionally, new clients are welcomed with an initial bonus of $100 credited to their accounts.
To initiate such a program, navigate to the “Loyalty” -> “Referral program” section and complete the necessary fields.
Developing a Loyalty Program
It’s crucial to design a compelling loyalty program that offers valuable bonuses, encouraging customers to stay rather than switch to competitors. FlexGym has utilized the full spectrum of loyalty options.
Cumulative Cashback
Clients earn cashback on every payment made towards workouts, with the percentage varying from 3% to 15% based on the total spent. This cashback accumulates on a bonus card, which can be used to cover up to 50% of subsequent session costs, with a minimum spend of $50.
Training Memberships
FlexGym offers more economical options through training memberships compared to single-session payments. These memberships, such as a 5-session membership valid for 90 days and a 10-session membership valid for 180 days, offer a reduced rate per session, providing both savings and an incentive for frequent visits.
Gift Cards
Available in denominations of $20, $50, and $100, these cards can be purchased and given as gifts. They remain valid for 180 days from the purchase date and are redeemable in a single transaction.
Trial Sessions
Recognizing that potential clients may need more than reviews and recommendations, FlexGym offers trial sessions at a 50% discount. This allows newcomers to experience a workout firsthand and decide if the gym meets their needs.
FlexGym’s case demonstrates how Altegio can be used to establish and manage a comprehensive customer loyalty program effectively. All settings can be configured under the “Loyalty” section of the Altegio chain interface.
