In today’s world, where loyalty is an imperative aspect, having a smart customer loyalty program is inevitable! But not every loyalty program can be the same. Each brand has a different goal and requires following an altogether different strategy as well. As a brand, you must have a lot of questions like how to start? What would be the total tenure to implement? What kind of features should be included? What to look for? And many more.
In this article, we will study how to create a loyalty program in the easiest possible way!
Customer Loyalty is an undeniable Factor for Business Growth
Brands and Retailers are always looking for options to scale their business. Having a customer loyalty program is a great option to grow and boost business profits as well. Before developing a customer loyalty rewards program software one requires to know if this will a useful strategy for the business or not. The first thing here should be to determine the value of a customer to the company and how much does it cost to acquire new customers. This will particularly help a brand in deciding if one needs to invest more money in developing new customers or focus on retaining and nurturing the ones you already have.
Steps to Develop a Customer Loyalty Program Software
Developing a loyalty program isn’t a quick process, it involves various levels and steps, here’s a brief to let you know more-
1. Analyze the current customers
Understanding the current customer base is the most essential step, the following can be the questions to be considered-
- How much does the customer buy in a year?
- What kind of products do they buy and how frequent are their purchases?
- How long has the customer been associated with the brand?
- Check out the products/ services they are purchasing
- What’s the amount of profit they earn through their purchases?
- Check out the payment method they follow or how quickly they make the payment
- How satisfied are the customers with the brand?
- How could the brand improve the business relationship?
2. Get Prepared
Before launching a loyalty program, one requires to assess the customers; level of satisfaction through these strategies as surveys, interviews, and monitoring customer comments as well. Analyze your brand employees who are good at customer dealing and who will be available to participate in the program.
3. Set your Goals and measure with a CRM
Set your program goal right from the beginning. For instance, if a customer is purchasing on average thrice a year, one can set a goal of 3.3 times in a year. This will increase a brand’s sales by 10% through a few additional expenses. Make use of CRM software to manage the issue.
4. Set a Budget
As a brand, one can set a budget for managing customer retention and a separate one for acquiring new ones. For doing the same, as a brand, you can consult your industry average. In case one is looking for the average growth, increase your budget as and when required.
5. Decide the Customers to Target
It’s time to set your target audience, following can be the questions to be considered-
- Volume of purchases
- The ability to purchase more products and services
- How quickly the payment is done
- Customer profitability
- Loyalty over time
6. Choose the Right Strategies to boost Client Loyalty
As a business, one needs to keep focusing on enhancing the strategies which are related to a customer’s purchase, but also the quality of business relationship. Here are a few examples-
- Monthly visit from a sales representatives
- Annual visits
- Personal invitation to a seminar or dinners
- Premium service which is guaranteed round the clock
- Additional discounts when milestones are reached
Wrapping Up
Building loyalty is an imperative factor in today’s era. Developing a program requires a lot of hard work. Get your custom loyalty program software and development services and stay an edge above the rest.