The business environment has changed. With customer touchpoints and key buying decisions going digital, brands are re-looking at the customer journey. Increased accessibility of diverse brands for customers means increased competition for the company. Attracting and retaining customers goes beyond quality assurance. Creating a lasting customer experience by incentives for buyers is the purpose of loyalty programs.
So while the business environment has changed, the principles of marketing remain. In the 7Ps of marketing, 'People' are as important as the 'Price and Product.' How 'People' view a 'Product' depends on how the brand treats its loyal 'People.'
A loyalty management program is not a new concept. But, in today's complex and competitive markets, it has assumed renewed significance. It takes less than a few seconds for customers to log out of your brand page. If a person is looking for restaurants, there are many reputed apps available at one's fingertips. The service and the products each of these platforms offer remain similar. The key differentiator is the lucrative offers. So, well-designed loyalty programs work wonders for revenue generation.
Below are the five benefits of a Loyalty program:
Customer engagement through goals
People love working towards a goal. The goal can be life's purpose, career aspirations, or even collecting reward points that can be later redeemed. While many of us complain about targets, human beings are target-driven by nature. Loyalty programs use our need to be goal-oriented to keep loyal customers.
Customer retention beyond advertisements
A headline must grab a viewer's attention in less than 3 seconds! On average, people are exposed to 6000 to 10,000 ads per day. A brand needs to use videos, illustrations, colors, and effective headlines to grab a customer's attention. On average, Amazon itself adds about 4700 new sellers every day. Given the stiff competition that brands face, looking for marketing methods beyond direct advertisement has become necessary. Customer loyalty programs are practical tools for indirect marketing.
Repeat customers
One can often hear people saying that they need to revisit a particular store to redeem their shopping points. Even though the product or the brand itself does not have a recall value, the accumulated credits and loyalty points encourage shoppers to revisit the store or buy the brand.
Gamification and loyalty programs
Exclusive memberships and a sense of achievement build a good loyalty program. Luxury brands manage brand value by offering elite club memberships and more benefits to their loyal customers. Gamification of loyalty programs keeps your customers engaged.
Branding through loyalty program
Loyalty programs are a means to communicate the brand's value proposition. Naming a loyalty program makes it enticing, exciting, and distinguished.
Loyalty Management Technology:
If loyalty programs are done right, they work wonders for the business. Brands must keep the customer's needs in mind while designing a loyalty program. Using technology for loyalty management ensures that the program is on track. Technology for loyalty management provides insights on buyer behavior and consumer psychology.
Check out the loyalty management program at ACVISS for creating a lasting customer experience.
