Boosting Loyalty & Engagement through Customer Loyalty Programs
- Posted on April 11, 2022 by Robert
- Reading time about 6 minutes
Loyal customers are the lifeblood of any business! The reason being it relatively costs less to engage existing customers than to acquire the new ones. A survey says that it costs 5-25 times more to get new customers onboarded than to keep the existing ones.
Though building loyalty isn’t the easiest thing to do, especially when we’re in midst of such an edge-to-edge competitive business space. But why do we need loyalty at every step? Maybe because it’s the only possible way to increase customer engagement and retention. So, let’s discuss the top methods to build loyalty with the customers and empower customer experience altogether. One of the most impactful options to boost engagement is through integrating a loyalty program software.
Let’s understand and discuss the reason why having a loyalty program is important and beneficial at the same time.
Knowing all about Loyalty Programs
A customer loyalty program is a basic strategy for customer retention and an excellent solution to reward customers. It aims to motivate the customers to keep on making repeat purchases from your brand rather than others in the competition. According to Accenture, more than 90% of companies are running one or more loyalty programs at any given point. Still not convinced about the need for having loyalty program integration? Here are some stats to prove the fact-
- Having a loyalty program integrated with a brand can potentially increase the online store’s average order value by 319%
- 73% of the consumers are willing to recommend brands with a good loyalty program.
- Less than 8% of consumers say that rewards do not influence their purchasing decisions.
- A majority of 75% of consumers say that they will instantly make another purchase if they’re getting a reward for buying from any brand.
- 62% of Generation Z are highly influenced by loyalty programs.
Seeing it from another aspect, loyalty programs not just provide a way for customer retention but is an excellent remedy to collect and analyze customer data. How is that? Every customer signing up submits their details on the systems, it carries basic information and much more data insights which can later be useful for targeted communication and personalized offerings.
Setting up a Customer Loyalty Program
To make a customer loyalty program work efficiently for you, it is important that your brand is well-equipped with the right strategies. Here are a few steps to consider while setting up a customer loyalty program-
- Promote it the right way
It is important that customers should know about your loyalty program, your website must promote the idea of loyalty and have tons of powerful tools to promote the same. Make digital promotions through google advertisements, float your ads on social media and keep your website ready to show all the features and benefits of having a loyalty program or being associated with the loyalty program.
- Analyze your Business Goals
The foremost thing to do while setting up your loyalty program starts through sound research! It is important to analyze imperative business aspects which can further help you in choosing a loyalty program that perfectly aligns with the business’s long-term goals and objectives. It can help in analyzing the size and type of the business, stay clear on business objectives, and have a fair idea of the budget too! At the end of the day, one should understand that a program is only successful if it appeals to your customers.
- Think of having an Innovative name for your Loyalty Program
Every brand might call their loyalty program simply an extension to their name or may even add rewards as a suffix. But as a brand, you require to be innovative enough to think of an appealing name. A different name can altogether create a level of excitement amongst the customers, it should be distinctive enough to catch their attention. Also do not forget that your creative name should also have a constructive meaning and should be able to connect well with the customers. You can have some parameters in mind including the name that should represent your brand, it should have a resemblance to the industry you’re allocated to and must cater customer values portraying your brand name and customer share.
- Let it be a smooth Sign In
Most of the brands have a complicated procedure to sign in to the loyalty portal, they may have too many questions asked in the first instance or simply have a lot of steps involved in the beginning. All of these factors can turn off the customers and make them find an alternative option instead of involving in a huge hassle. Make sure your sign-in process is easy, your rules are easy to understand and follow and the points redemption options have enough variety to keep the customers gripped with your brand.
- Dedicate it to the Customers
Just having a loyalty program integrated isn’t enough! It must appeal to your customers as well! Without having the customers like the same, there’s no point in adding in the investment. Analyze your customer’s requirements, their purchasing pattern and make sure you hit the right thing while targeting offers and deals to the customers. It is by far the best way for motivating the customers to have active participation in the loyalty program.
There can be numerous types of customer loyalty software around you but what suits you the most depends on your business perspectives and long-term goals. Its always preferable to have a simple yet efficient loyalty program to not just have excellent branding opportunities but also have a smarter way to increase customer retention and boost engagement. Setting up a loyalty program is not a complicated process if you have the right customer loyalty solution providers to work with you and stay in line until you have the final product all set to go! Get your loyalty program software designed, researched, and developed by the best-in-class team dedicated to providing you with the solution you always wanted!