Is your loyalty business ready for the upcoming Recession?
- Posted on June 21, 2022 by Robert
- Reading time about 5 minutes
Just like the earlier recession wave which shook the entire world, we may be under another wave of recession super soon, and why do we say that? There are numerous concerning financial and economic statistics which bring in a relatively higher probability that the world is heading towards a recession. Though the intensity isn’t predictable at the moment, it may be too deep or maybe just a mild one in the way but can surely leave a scar on the customers and the businesses!
While most business already has their loyalty management software handy to start with. But is your loyalty business ready to face the challenges associated with recession in the long run? Let’s evaluate! As many countries have already started shielding their loyal business to sail through the tough times. The companies with the capability of surviving for the next few years should keep themselves prepared for the worst and have the amounts of funds ready to manage in the future.
Recession Proofing a Business
With the changing times, companies should be paying the most attention to their loyalty programs and reduce their spending to make savings for the long run. For retaining better valuable members and reaching higher tiers, it’s imperative to keep a check on your loyalty business. Most of your business revenue will come from your existing customers and that’s the reason loyalty management software/business owners must focus on retaining customers and keeping them coming back time and again. Here are a few ways a company can address its major limitations with its existing loyalty program-
Not every loyalty program design the way it should be! Make sure your loyalty program design is optimized, why’s that? It is because there are many companies around who have poorly designed program that hardly attracts customers. One should have a test and the right data to check out what your customers would like to experience or include. For instance, one can checkout through the data who’s making the most of the spending and make a comparison on what to offer to which set of customers. Make required amendments keeping the basic challenges in mind and try every hook in your reach to keep the customers gripped and engaged.
Your loyalty program should be supported through effective lifecycle management. This basically means delivering personalized offers, and the right communication which is completely based on where the member lies in the lifecycle. Check out the parameters including if the customers are new joiners, and are they already in long association with the brand? and so much more to look after. Provide your customers with personalized and customized offers to let them have a transformation into becoming brand advocates. In case you lose out on them, try targeting them through some automated retention campaigns.
Data and Utilization
Your loyalty program must support and smartly capture the quality of your member’s data and can be used for building smart, insightful reporting and analytics. There’s customer data everywhere, but it’s important to know how your company is collecting and making use of the data, further interrogate the same in today’s market and industry. Keep an understanding that the programs winning in today’s era are mostly the ones making use of customer data and evolving at the same time.
A study conducted by McKinsey identified that the pandemic has nearly shifted customers’ attitudes in regard to personalization from mere good o having to change the same to mandatory. These programs are specially designed to support omnichannel personalization wherein a member is recognized and gets in return a personalized and relevant experience at every possible touchpoint. This seems tough to achieve and a few brands do it quite well but sometimes the companies which will dominate their industries in the future kicks off with a clear and precise motive on what exactly they need to achieve. What sort of brand are you? Do you have your loyalty points program ready to stay recession-proof and filled up with customer engagement options as well?
Power with Technology
An effective loyalty program requires a dosage of great technology. From the various available options in the market, it seems extremely imperative to deliver the right customer experience. The good part here is there are great technology options available that you can add to your business and level up your technical requirements at the same time. power your loyalty program with a smart technology-enriched platform and get on the wheels.
It is unlikely that we can avoid recession but there can surely be so much that the companies can prepare for the same. To come out stronger and firm, a brand should always have its plans and preparation ready well in advance. Your loyalty programs platform should have all which needs to stand tall in the edgy competition. Having a look at all the listed parameters is your program all set and ready to shine along? Get set with the right loyalty solution provider to enhance your existing system.