How Customer Loyalty Program Have Evolved with the Digital Era?

Today, loyalty programs are far more sophisticated than ever! Having options of redemption available across various industries. Loyalty programs are structured and a long-term marketing strategy that boosts customers to make repeat purchases of the same product or service. As per a study, a mere 5% rise in customer loyalty is likely to increase profit per customer by 25%-100%.  

Many retailers nowadays have started adopting loyalty programs for retaining more customers and keeping them bonded with a brand. However, with the span of time customer loyalty program have changed drastically, brands focus on customized options rather than following a traditional approach to loyalty. Reward points have been considered as an imperative part of loyalty programs, customers can earn and burn points and continue making the payment cycle smooth.  

Factors Driving the Growing Popularity of Reward Points  

The best part of reward points is redeeming them conveniently through multiple channels marking a significant shift from the traditional point based loyalty program. Talking about the Indian payment landscape, it has long been dominated by paper-based transactions, mostly in the semi-urban and rural markets. Adoption of loyalty points by the masses showed another drawback as earlier loyalty points were added in a card-based system which can be later redeemed in a physical store.

As of date, the systems have upgraded and there’s more possibility of customers joining in! nevertheless, by the digital evolution, the approach towards loyalty programs is completely transformed. Various merchants are employing different methods such as email marketing, social media, loyalty cards, etc. for getting maximum participation of the customers.

They can earn loyalty points in more than one possible way. For example, shoppers can have the opportunity to earn points from transactions done through debit and credit cards, airline corporations, and even eCommerce platforms.  

Redeeming Loyalty Points  

Most of the companies allow their customers to redeem their loyalty points via different options rather than doing only in one place. The enhanced flexibility of redeeming loyalty points within multiple channels marks a fair shift from the earlier scenario. For instance, the Indian Payments system has been ruled by paper-based transactions. Thus, the selection of digital payment tools was lesser which in turn influenced the reach of loyalty points.  

Today, loyalty programs have matured from being a mere mobile number database to recognizing customers and mapping their purchasing behavior, demographics, and other profiles basically related to behavior. This is possible through an analytics-based approach.

Online to offline gifting platforms are already disrupting the space by allowing customers to convert their loyalty points into their brand currency and make use of them. To our surprise, this can be considered as the most transforming nature of loyalty wherein the customer always remains the prime focus point.  

Future of Customer Loyalty Program  

Loyalty programs are a clear indicator of a customer’s will to stay connected to a brand. this includes developing a feeling of emerging loyalty through positive customer experiences, a higher level of satisfaction, and a sense of value which is derived through the products or services of a particular brand. basically, a loyalty program mostly provides customers with free merchandise, rewards, coupons, and even exclusive previews of products. Though offers and deals may not be enough after a point in time, it would specifically need a strong strategy to help through.  

Wrapping Up  

Businesses are under constant pressure to scale and grow alongside have a loyal customer base. Though loyalty programs have been rising in standards and evolving in terms of technology advancements we still need the right Loyalty program software to manage all at once. Get started with a suitable loyalty program and stay at the top of your business. 

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