Keep customers loyal and active
Creating customer habits if you’ve ever struggled with a big lifestyle change, like trying to start a new diet or exercise regimen, you know that the first couple of weeks are the toughest. But if you’ve managed to stick with it, then you also know that it gets easier over time.
This process is known as the power of habit formation, and it applies to growth hacking as well. Many businesses have found success by helping customers form habits by offering rewards through a process known as engagement loops.
Amazon is a prime example (no pun intended) since their Amazon Prime program is a perfect engagement loop. The company makes an offer, rewards customers for taking it and then provides an excellent service to keep the customer happy and coming back for more.
Let’s take it one step at a time. First, Amazon makes the offer of signing up for a Prime membership, which it does through promotional emails, displays on their website and various other notifications. Once a customer signs up, this is followed by the most important step in the engagement loop: rewarding the customer for taking the offer.
By signing up for Amazon Prime, the customer gets a number of benefits, including instant streaming of movies and TV shows and free two-day shipping. So the customer gets instant gratification. Then Amazon reassures customers that they made the right decision by reminding them about how much money they’re saving every time they make a purchase.
These rewards feel good, and it doesn’t take shoppers long before they come to expect this good feeling every time they go to an online marketplace. And since Amazon is the only business with a reward program like Prime, it’s built a very loyal customer base of habitual Amazon shoppers.
Prime has been so incredibly successful that the results even surpassed Amazon’s expectations. Each year, more than 90 percent of the Prime subscribers have renewed their membership.A good way to start your own engagement loop is to test different reward strategies in order to find out what customers value the most. Click To Tweet
You can start with two of the most successful types of reward programs: social recognition and user achievements.
Social recognition is what Yelp uses by designating its most active users with “Elite” status, which includes invitations to special parties and events, and a badge to highlight their status on their online profile.
Rewarding user achievements is another effective way to make customers feel good. For example, the fitness company Fitbit sends a congratulatory notification to its users when they take their ten thousandth step.
Take the time to align with your marketing, sales, and service teams, always keeping the customer at the center of your efforts.