Loyalty is an imperative aspect to consider no matter what's your industry type. While loyalty is now not an option, it’s a necessity to grow the business and have a larger customer base as well. A surv ey states that loyalty programs are known for enhancing a business’s brand experience for over 80% of customers.
Though loyalty is highly demanded, there can be a huge list of loyalty program FAQs which can later be a holdback for any brand. Let’s answer all your queries with a customer loyalty program guide to help you through the process and clarify the major questions popping in mind. Ready to decode? Let’s dive in!
Having a loyalty program can be a plus for your brand but not necessarily a success guarantee. They are a powerful wayout that can potentially help you win amongst the hard-hitting competition. Being powerful differentiators, loyalty programs can help you stand out from the competition. It is undoubtedly an effective customer retention solution providing a means to change customer behavior and drive impactful business growth as well. In case you do not have a loyalty program, it’s completely your choice! Though having the same can be considered as a plus.
In general cases, going for making everything ourselves is quite a time-consuming process. For instance, if you’re willing to set a loyalty program for you brand, you require to invest in employees for researching the latest loyalty trends, analyze customer behavior, as well as building and looking after the ongoing process. Talking about the expenses, unless you have the entire department of developers on standby to completely focus on your loyalty program, it will be quite a lot of investment involved. On the other hand, if you’re choosing a third-party loyalty software, it can prove more cost-effective in the longer run. The reason being, it will not require to build the system from the scratch. Choosing what’s right is as per your individual situation and conditions supporting.
The answer to this question completely depends on the kind of program a brand is willing to have. Talking specifically about point-based programs, here the customers earn points for the money they are spending and that’s possibility the easiest way to attract customers, also it is easy to implement for brands and equally convenient for customers to understand. Though we cannot consider only Points-based programs to be successful, there are other approaches too! For instance, tiered programs is also a poplar option, focusing on varied customer privileges and perks.
Every loyalty program's success depends on how it caters the customers, mostly brands consider having alluring rewards to be a success guarantee, however, it is not! There are basically five different reward categories but the major challenge is to choose which one would be the best-fit. For example, if a brand have some loyal customers, making frequent purchases every time, they would certainly expect VIP treatment and wish to stay exclusive in comparison to the rest. Every customer is unique, so are their purchasing patterns and so should be the kind of rewards offered to them as well.
Most of the brands still think that loyalty programs contribute a huge sum and reciprocate no or very little results. No wonder, brands have never realized the power of loyalty programs which is set with the right strategy and path. One can easily expect a higher ROI and extend their reach as well. To help you know better, here are a few examples-
To your surprise, yes! Customers love rewards and there’s no doubt in this! While rewards are not just limited to purchases, it can be much more! Recognizing loyal members, providing loyalty benefits on frequent purchases, rewarding on referrals and incentivizing on leaving reviews, everything comes under perks and that’s how one can create an emotional connect between a brand and the customer itself.
That’s surely not an easy nut to crack but, isn’t an impossible task too! The most common method to turn your loyal customers into brand advocates is through incentivizing on referrals and having a stronger customer base all together. Following options can be taken in consideration-
Loyalty programs are a pool of data and immense information and it should be protected from any data loss and accidental leaks as well. It is important to protect your system from any data breach. Integrate a loyalty program having a smarter technical and organizational measure to protect your data and authorize only a few people who have access to it. In other words, you can have a limited access network to protect the data and stay secure at the same time.
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