Tag: Loyalty Program

How To Create A Loyalty Program That Strengthens Customer Relationships

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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.

How Customer Loyalty Program Have Evolved with the Digital Era?

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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.